Archive · 8 Nov 2025
Bajaj Auto Achieves Record Revenue and Profit, Expands EV Business
Bajaj Auto, a company that makes motorcycles and electric vehicles, had its best sales period ever!
Their total money earned from sales went up by almost 19%, and their profit nearly doubled compared to last year.
This success happened because they sold more of their fancier, more expensive bikes and did very well in selling vehicles to other countries.
They also have a growing electric vehicle business, which now makes up about 20% of their sales in India and is becoming profitable.
Even though they had some trouble getting special parts called rare-earth magnets for their electric scooters and three-wheelers, they fixed this problem.
They even became the top seller of electric scooters in October.
Bajaj is also getting closer to fully owning KTM, a motorcycle company from Austria, and is looking for ways to make KTM's bikes more affordably, possibly by making some in India.
Bajaj Auto reported record quarterly revenue of Rs 15,734.7 crore and profit after tax of Rs 2,122 crore in Q2 FY26.
The company's EBITDA surpassed Rs 3,000 crore for the first time, with a margin of 20.5%.
Supply constraints due to rare-earth magnet issues affected electric vehicle production but were resolved by the end of September.
Exports revenue increased by 35%, with double-digit growth in Africa, and the electric commercial vehicle portfolio grew 1.5-times year-on-year.
Bajaj Auto is on track to gain majority control of KTM, with plans to evaluate manufacturing some KTM models in India to reduce costs.
- Who
- Bajaj Auto
- What
- Achieved record quarterly revenue and profit, with significant growth in its electric vehicle business and progress on its KTM acquisition.
- When
- Second quarter of FY26 (ending September)
- Where
- India (reporting from), Europe (KTM approvals)
- Why
- Driven by a richer vehicle mix, strong export momentum, best-ever spare parts sales, and the positive impact of post-GST cuts on premium variants.
Electric Vehicle Production Challenges
Resolution and Future Plans
Rare Earth Magnet Shortage Impact
Electric Vehicle Production Challenges
Supply constraints, particularly for e-3 wheelers and the Chetak scooter, were experienced for most of the quarter due to rare-earth magnet supply issues, impacting production significantly.
Resolution and Future Plans
The rare-earth magnet issue was resolved by the end of September with the flow of supply. Bajaj Auto also took swift alternative measures to ensure the availability of magnets and is exploring solutions to de-risk from rare earths entirely, including rare-earth-free motors.
- Consolidated Revenue (Q2 FY26)
- Rs 15,734.7 crore (18.8% Y-o-Y increase)
- Profit After Tax (PAT) (Q2 FY26)
- Rs 2,122 crore (53.2% Y-o-Y increase)
- EBITDA Margin (Q2 FY26)
- 20.5% (up 70 bps Q-o-Q)
- Domestic Electric Business Share
- Approximately 20% of domestic revenues
- KTM Approvals
- 8 out of 9 European approvals secured for majority control
- KTM Bike Sales (Domestic + Exports)
- Over 60,000 units (70% Y-o-Y increase)
- Electric 3-Wheeler 'Riki' Launch
- Launched in four cities
