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Informist, Friday, Jan. 30, 2026

NEW DELHI/MUMBAI – Bajaj Auto Ltd. expects the motorcycle industry to grow in the mid-to-high single digit year-on-year in upcoming quarters, supported by steady demand momentum after the festival season, even as cost pressures persist, a top company executive told reporters in a post-earnings virtual press conference.

"The industry is currently trending at single digit (levels)... and as we look at the following quarters, the current levels hopefully should sustain to some extent, essentially mid-to-high single digit," Bajaj Auto Chief Financial Officer Dinesh Thapar said.

Demand for motorcycles in India was muted in the first six months of the financial year 2025-26 (Apr-Mar), Thapar said. "Between Q1 and Q2, FY26 was flattish at best," he said, adding that the festival season and the cut in goods and services tax supported sales volumes in the second half of the year.

Bajaj Auto said its exports recovered sharply in the December quarter, with overseas volumes crossing 600,000 units for the first time in 15 quarters. "The last time we did this was way back in FY22," Thapar said. "After 15 quarters, we have come back to the levels of delivering six lakh (600,000) units in a quarter."

Africa contributed to the export recovery, with the company seeing improvement across most markets on the continent. "Pretty much across most countries in Africa, we're starting to see a comeback of growth compared to the same time last year," Thapar said. Nigeria, however, has continued to lag. "Nigeria is still operating at half its market levels compared to the past," he said.

In Asia, Bajaj Auto reported double-digit growth at the regional level during the quarter, although Bangladesh continued to trail other markets. "Bangladesh is operating at close to about 60–70% of what it should have been," Thapar said, adding that challenges in the market have weighed on the company's export volumes.

The company faced inflationary pressures in the December quarter. "Last quarter, we had about 50 basis points of net cost inflation, for which we did not take any pricing (action)," Thapar said. However, for the March quarter, the company has taken pricing action to offset at least part of the cost pressures. "At the start of the current quarter, we have priced out half of the commodity inflation," the chief financial officer said, adding that the remaining impact would be tracked as commodity prices remain volatile.

Rapid depreciation of the rupee against the dollar played out in the Pune-based automaker's favour in the December quarter, given its significant exposure to overseas markets. "Our dollar realisation for the quarter was at 88.3 compared to 87.1 in the previous quarter and 84.3 same time last year," Thapar said. "Currency has been a significant tailwind to overall profitability."

On product launches, Bajaj Auto said multiple initiatives are underway across segments. "There is very clearly work that is happening looking at the 125cc segment," Thapar said, adding that development work is also progressing on a new Dominar platform and refreshes across the Pulsar range.

Bajaj Auto's commentary on new products comes after the company last year outlined an aggressive medium-term launch roadmap, including new Pulsar models, a fresh internal combustion engine brand, and a next-generation Chetak electric scooter, as reported earlier. The company had said the pipeline would extend through 2027, spanning mass-market, premium, and electric motorcycles, with multiple platform-led launches planned over the period.

The company recorded strong volumes during the quarter for its premium motorcycles. "KTM and Triumph have delivered the highest ever quarter," Thapar said. "KTM has delivered its biggest ever quarter after 2021."

On KTM's global operations, Thapar said the focus is on stabilisation following the Austrian company's takeover by Bajaj Auto in November. "2026 will be a year to rebuild KTM, to get the basics back, to get a leaner and fitter organisation, a pruned cost base, and to build back the revenue momentum," he said.

ELECTRIC PORTFOLIO

The company said its electric business has entered a phase that is different from earlier years. "When you combine electric two-wheelers plus three-wheelers, we have now got to a situation where the electric portfolio is actually adding to profit," Thapar said. Electric three-wheelers continue to generate strong margins. "With the PLI (production-linked incentive) benefit, electric three-wheelers are about as profitable as the ICE (internal combustion engine) business in margin terms," Thapar said.

On electric scooters, Thapar said the Chetak range posted its highest-ever quarterly volumes after supply constraints eased. "There was a time when we were bleeding at gross margin... today we are nearly... neutral," he said, adding that "supply is now unconstrained".

The Chetak range of electric scooters experienced supply pressures in 2025 owing to the shortage of rare-earth magnets, a key input for automobiles, especially those running on batteries. Currently, these constraints have eased as the company has got alternatives such as light rare earths, Bajaj Auto said.

Bajaj Auto's compressed natural gas-run motorcycle, Freedom 125, has seen stable growth in recent quarters. However, its growth remains closely linked with the availability of infrastructure. "CNG density and infrastructure has been quite a constraint," the chief financial officer said, adding that sales are currently concentrated in Maharashtra, Gujarat, and Kerala.

The company's net profit for the December quarter was INR 25.03 billion, up 19% on year and marginally higher on quarter. However, it was lower than analysts' expectation of a net profit of INR 26.33 billion. Its revenue from operations grew 19% on year and nearly 2% on quarter to INR 152.20 billion. This, too, was below the consensus estimate of INR 154.20 billion. The company's top line rose above INR 150 billion for the first time.

Bajaj Auto declared its December quarter financials after market hours Friday. Its shares closed 0.9% higher at INR 9,597.50 on the National Stock Exchange.  End

Reported by Pallavi Singhal and Anand JC

Edited by Rajeev Pai

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