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Bajaj Auto Delivers Record Q2 as Export Rebound Lifts Margins, Brokers Flag Share Loss Risk

Bajaj Finance posted strong profit growth with softer asset quality, highlighting mixed signals across the wider Bajaj Group.

Overview

  • Bajaj Auto reported Q2 FY26 revenue of Rs 14,922 crore, net profit of Rs 2,480 crore and EBITDA of Rs 3,052 crore with margins at 20.5%.
  • Overseas revenue rose about 35% year on year with strong demand from Africa, Asia and Latin America, aiding overall performance.
  • Electric two-wheeler output was hit by rare-earth magnet shortages in July–August, and the company re-homologated motors using alternate magnets as Chetak supply recovered by September–October.
  • Brokerages were divided, with CLSA rating Outperform (TP Rs 10,604), BofA Neutral after a TP cut to Rs 9,300 and Jefferies Hold at Rs 9,200, citing domestic motorcycle market-share losses, particularly in 125cc-plus, and KTM execution as key watchpoints.
  • Elsewhere in the group, Bajaj Finance’s consolidated profit rose 22–23% to about Rs 4,875–4,948 crore with AUM up 24% to Rs 4,62,261 crore as gross NPA increased to 1.24%, and Bajaj Consumer Care’s net profit climbed 33% to Rs 42.3 crore.