Bajaj Auto Limited has informed stock exchanges about the credit rating updates for its wholly owned subsidiary, Bajaj Auto Credit Limited (BACL). The disclosure was made on 07 March 2026 in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

ICRA Limited assigned and reaffirmed [ICRA]AAA (Stable) ratings to multiple financial instruments of Bajaj Auto Credit Limited through its letter dated 06 March 2026. The ratings demonstrate the subsidiary's strong creditworthiness and financial stability across different categories of debt instruments.

Rating Significance

The [ICRA]AAA rating represents the highest credit quality with lowest credit risk. The stable outlook indicates that the rating is unlikely to change in the near term. While the ratings for non-convertible debentures and subordinated bonds/debt were reaffirmed, the long-term bank lines received a fresh assignment of the AAA rating.

Regulatory Compliance

Bajaj Auto Limited received the rating information from ICRA on 06 March 2026 at approximately 5:45 P.M. (IST). The company promptly disclosed this material information to both BSE Limited and National Stock Exchange of India Limited the following day. The disclosure has also been made available on the company's website under the investors section as required by listing regulations.

Financial Impact

The total amount covered under these ratings stands at Rs. 7,750 crore across the three categories of financial instruments. The AAA ratings with stable outlook should facilitate favorable borrowing terms for Bajaj Auto Credit Limited and support its business operations in the automotive financing sector.

Bajaj Auto has announced through regulatory filings that its step-down subsidiary KTM AG has successfully completed its debt restructuring process. The company secured a €550 million refinancing loan from four international banks and has now fully repaid all outstanding obligations to Bajaj Auto International Holdings BV under their facility agreement.

Loan Agreement Termination

KTM AG has pre-paid all outstanding dues under the facility agreement with Bajaj Auto International Holdings BV, marking the official termination of the agreement. The original secured term loan of €450 million was executed to support the restructuring process of KTM AG and its relevant subsidiaries.

Regulatory Disclosure and Corporate Structure

The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. KTM AG operates as a wholly-owned subsidiary of Bajaj Mobility AG, which is itself a step-down subsidiary of Bajaj Auto Limited.

Banking Consortium and Refinancing Structure

The comprehensive refinancing package demonstrates strong institutional confidence in KTM AG's financial position. The €550 million loan involves four major international banks and carries favorable terms reflecting the company's creditworthiness within the Bajaj Auto group structure.

Debt Restructuring Completion

This development represents the successful completion of KTM AG's restructuring measures. The proceeds from the €550 million refinancing facility were used to repay the intra-group loan from Bajaj Auto International Holdings BV, which had provided KTM AG with a €450 million loan to finance the restructuring plan.

Operational Performance and Strategic Outlook

KTM AG's operating performance has shown significant improvement, with global retail sales increasing by around 60.00% in the second half compared to the first half. Wholesale deliveries were stabilized in line with market demand, and inventory levels were reduced by over 100,000 units. The group continued its motorsports success, winning Rally Dakar and securing additional world championship titles in Motocross and Enduro.

CEO Gottfried Neumeister stated that the successful refinancing demonstrates clear confidence from international banks in KTM AG's future, providing stability, flexibility, and momentum for the years ahead.