Bajaj Auto October-December Profit Rises 19% to ₹25 Billion on Record Revenue and Export Recovery

Bajaj Auto Limited reported a 19% year-on-year increase in standalone net profit to ₹25.03 billion for the third quarter ended December 31, 2025, driven by record sales volumes and a recovery in exports. In a regulatory filing to the exchanges, the company stated revenue from operations grew 19% to ₹152.20 billion, compared to ₹128.07 billion in the corresponding period of the previous financial year.

The Pune-headquartered manufacturer recorded its highest-ever quarterly sales of 1,341,252 units, a 10% increase from 1,224,472 units a year earlier. In a press release, Bajaj Auto stated the performance was "underpinned by double-digit growth across all businesses," comprising domestic motorcycles, electric two-wheelers, and commercial vehicles. Domestic sales rose 3% to 731,037 units, while exports surged 18% to 610,215 units, crossing the 500,000 mark for the first time in 15 quarters.

Operational Performance and Margins
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) reached a peak of ₹31.61 billion, a 22% rise from ₹25.81 billion in the same quarter last year. The EBITDA margin expanded by 60 basis points year-on-year to 20.8%. The company attributed this expansion to favourable currency movements and product mix benefits, which offset cost inflation and the impact of higher electric two-wheeler sales. "Margins expanded +30 bps QoQ as currency tailwind and PU benefits more than made up for the decision to absorb cost inflation," the press release stated.

Total expenses for the quarter stood at ₹121.74 billion, up from ₹103.40 billion in the previous year. The cost of raw materials and components consumed increased to ₹98.68 billion from ₹83.79 billion. Finance costs dropped to ₹25.6 million from ₹143.7 million in the year-ago period. Depreciation and amortisation expenses were recorded at ₹1.12 billion.

Segmental Breakdown: EV and Premium Bikes
The electric vehicle (EV) segment, led by the Chetak scooter, grew approximately 70% sequentially. The company noted that the electric portfolio contributed 25% to domestic revenues, overtaking the entire revenue of the previous financial year by the middle of the quarter. In commercial vehicles, electric three-wheelers hit peak billings, supported by the launch of the e-kart model.

The premium motorcycle segment accelerated, with the Triumph and KTM portfolio recording roughly 50% year-on-year growth in domestic volumes and revenue. The company stated that pricing interventions for Triumph motorcycles—executed to absorb the Goods and Services Tax (GST) rate increase for vehicles over 350cc which enabled strong sales for Speed and Scrambler models.

Consolidated Financials and Subsidiary Accounting
On a consolidated basis, Bajaj Auto posted a profit after tax of ₹27.50 billion, up from ₹21.96 billion in the year-ago period. Consolidated revenue rose to ₹162.04 billion from ₹131.69 billion. These figures include subsidiaries such as PT Bajaj Auto Indonesia and the recently acquired controlling interest in Bajaj Auto International Holdings AG (BAIHAG).

Exceptional Items and Regulatory Changes
The results include an exceptional item expense of ₹613.2 million related to the recalculation of employee benefits. This adjustment follows the revised definition of wages under the new Labour Codes (Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020), notified by the Government of India on November 21, 2025. The company recognised this estimated additional expense towards gratuity and leave encashment, with a corresponding deferred tax asset of ₹154.3 million.

Changes in tax laws also impacted provisions. The Finance (No. 2) Act, 2024, withdrew indexation benefits on long-term capital gains for debt mutual funds purchased prior to April 1, 2023. Consequently, the company increased its deferred tax provision on investment income by ₹2.11 billion as a cumulative one-time provision for the nine months ended December 31, 2025. A further provision of ₹758 million was made regarding deferred tax on fair value changes of investments in Bajaj Holdings & Investment Limited and Yulu Bikes Private Limited.