Bajaj Auto Limited Q3 FY26 Earnings Call Summary

Summary

Bajaj Auto Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026 5:30 PM IST

Event Participants

Executives 3 Anand Newar (Head, Investor Relations), Dinesh Thapar (CFO), Rakesh Sharma (Executive Director)

Analysts 6 Amyn Pirani, Chandramouli, Gunjan Prithyani, Joseph George, Kapil Singh, Raghunandhan N. L.

Financials & KPIs

Geographic & Segment Commentary

• Domestic Motorcycles: The segment saw a 15% industry growth post-GST rationalization, with Bajaj prioritizing the 150cc+ “Pulsar heartland.” Management launched 7 product interventions since November and scheduled 8 more through Q1 FY27 to regain lost market share.
• Exports: Revenue grew 20% YoY in INR terms, driven by a recovery in 30 key markets and a 56% volume surge in Commercial Vehicles. Latin America delivered its highest-ever performance, while Brazil reached nearly 10,000 units with a healthy bottom line.
• Electric Vehicles (Chetak & 3W): Combined EV revenue crossed ₹2,000 crores (₹1,000 Cr each for 2W/3W), contributing 25% of domestic revenue. The EV business achieved double-digit EBITDA margins due to PLI benefits and improved unit economics.
• Commercial Vehicles (ICE): Maintained 70%+ overall market share and 85%+ in CNG; the ICE segment returned to 4-5% growth following GST cuts.

Company-Specific & Strategic Commentary

• Pulsar Portfolio Refresh: A “barrage” of 15 new interventions (7 completed, 8 pending) aims to refresh the OG, N, and NS Pulsar series to outpace 125cc+ industry growth.
• KTM AG Turnaround: Following an increase in ownership to 75% on Nov 18, Bajaj implemented a three-pillar plan: ensuring liquidity, rebuilding the top management deck by April 1, and aggressive cost reduction.
• BACL Digital Focus: The finance subsidiary achieved a 21% ROE and ₹200 crore quarterly PAT using a “digital-first” model with lower operating costs than traditional peers.
• Premium Network Expansion: Joint KTM-Triumph showrooms are being scaled from 50 to 100+ outlets by March to enhance dealer viability in smaller markets.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Domestic Market Outlook

• Question: What is the medium-term outlook for the domestic motorcycle industry post-GST cuts? (Kapil Singh)
• Answer: Growth has bumped from -3% in Q2 to +15% in Q3. We expect 12-15% growth to sustain in the immediate term, with the premium half growing 3-4% faster than the bottom half (Rakesh Sharma).

EV Profitability

• Question: Is the electric 2-wheeler business currently EBITDA profitable? (Raghunandhan N. L.)
• Answer: Yes, the electric 2-wheeler business has hit EBITDA breakeven, and the combined EV portfolio (2W + 3W) is delivering double-digit EBITDA margins (Dinesh Thapar).

KTM Strategy

• Question: What specific synergies are being targeted with the KTM acquisition? (Raghunandhan N. L.)
• Answer: Focus is on a 360-degree plan: eliminating brand overlaps, rewiring cost structures (material and overheads), and leveraging Bajaj’s distribution/GTM systems (Dinesh Thapar).

BACL Funding

• Question: Will Bajaj need to continue investing capital into the finance subsidiary? (Amyn Pirani)
• Answer: The October ₹300 crore infusion was likely the last needed. It was Tier 2 capital, allowing for potential future repatriation (Dinesh Thapar).

Key Takeaway

Bajaj Auto delivered a record-breaking Q3 FY26, with revenue crossing ₹15,000 crores and EBITDA margins expanding to 20.8% despite significant commodity headwinds. The performance was characterized by a broad-based recovery, with domestic motorcycle growth accelerating to 15% post-GST rationalization and exports hitting a 40-month high of 200,000 units per month. Strategically, the company is Pivot-ing toward a massive Pulsar portfolio refresh (15 interventions) to reclaim premium market share and successfully scaled its EV business to contribute 25% of domestic revenue with double-digit EBITDA margins. With the 75% takeover of KTM AG now complete, the focus shifts to an operational turnaround in Europe and consolidating those financials by Q1 FY27. Management maintains a positive outlook for Q4, targeting sustained double-digit domestic growth and continued export momentum, while remaining vigilant on precious metal inflation.