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Informist, Tuesday, Oct. 27, 2026

 

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--Bajaj Auto: Co's sales better than industry during festival season
--CONTEXT: Comments by Bajaj Auto CFO Thapar in post-earnings press call
--Bajaj Auto: Manufacturing 60,000-65,000 Chetak scooters per month now
--Bajaj Auto:Plan to increase monthly Chetak capacity to 80,000 units by Q4
--Bajaj Auto: Have seen two quarters of hyper inflation
--Bajaj Auto: Seeing inflation in steel, copper in Q3
--Bajaj Auto: Hiked prices in Oct to cover 30% of expected Q3 inflation
--Bajaj Auto:FY27 capex to be split evenly between EV, conventional vehicles

 

By Devanshu Singla and Anand JC

 

MUMBAI/NEW DELHI – Bajaj Auto Ltd. has implemented initial price hikes at the start of the December quarter to offset approximately 30% of its anticipated inflation in Oct-Dec, said Chief Financial Officer Dinesh Thapar in a post-earnings press conference. The company is adopting a dynamic, wait-and-watch approach for further price adjustments, actively monitoring festive market buoyancy and the industry's capacity to absorb additional costs following unprecedented pricing actions over the past two quarters, he added.

The company held its profit margins steady at 20.9% by managing a very challenging cost and hyperinflationary environment, Thapar said. While inflation in the first quarter was largely driven by the base metals complex, most notably aluminium and noble metals, the pressure shifted in the second quarter to severe hyperinflation and supply chain volatility across electronics, electrical components, and proprietary parts. Despite these shifting material costs, the company balanced growth and profitability in tandem, Thapar said.

 

"We are now into the third quarter of commodity inflation, where steel and copper prices, for example, which are amongst the very sizeable proportions of the overall purchase market, continue unrelenting in terms of their cost pressure," he said.

 

Bajaj Auto delivered its biggest-ever quarter for Chetak, with year-on-year volumes doubling despite facing severe supply disruptions and capacity constraints. "Both electric two-wheelers and electric three-wheelers, we were able to deliver only about 75% of our planned volumes with the losses coming from both capacity and a few import constraints that we had with delayed shipping coming in, inbound delayed shipping being disrupted," Thapar said.

 

The company is actively expanding its production setup. After running at 50,000 units a month in July, Chetak's monthly capacity has increased to around 60,000–65,000 units. The company aims to de-bottleneck operations further to reach 80,000 units by the March quarter.
 

Thapar said the company has performed better than the industry in the first 15–16 days of the festive season, led by electic vehicles, and top-end motorcycles. 

 

Bajaj Auto Ltd. projects a capital expenditure of around INR 9 billion for FY27, representing a significant increase from its traditional INR 6–7 billion annual spending range. The company spent around INR 4.5 billion in Apr-Sep and is planning an allocation of INR 4.5 billion for Oct-Mar. The capital expenditure will be deployed equally between the internal combustion engine and electric vehicle segments. The company aims to augment its manufacturing capacity to ease supply pressures and fund innovation for upcoming model launches, upgrades, and product refreshes.

 

For the September quarter, Bajaj Auto reported a net profit of INR 33.54 billion on revenues of INR 200.03 billion. The company announced its earnings towards the end of market hours. Tuesday, shares of the company ended at INR 10,390 apiece on the National Stock Exchange, up 3.2% from Monday.  End

 

Edited by Deepshikha Bhardwaj

 

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