Bajaj Auto Q1 FY27 Earnings Call: EBITDA Margin Hits Record 20.9%, Exports Cross 732,000 Units (BAJAJ-AUTO)

Bajaj Auto Ltd held its Q1 FY27 earnings call on July 21, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Revenue, Margin and PAT Amid Disruptions

• Revenue of Rs.17,244 Crores — up 37% YoY, driven by volume of 1.4 million units (+29% YoY), the highest-ever quarterly performance.
• EBITDA margin of 20.9% — up 10 bps QoQ, with EBITDA of Rs.3,590.6 crores (+45% YoY). PAT stood at ~Rs.3,000 crores (+42% YoY).
• Exports hit a new high of 732,000 units — USD 735,000 revenue, accounting for 40% of company revenue, growing 2x the industry in top 30 markets.
• Business disruptions impaired availability by 10–15% — including RM inflation, supply chain issues, and a ransomware attack. Without them, the company was on track to cross 1.5 million units.
• Free cash flow of Rs.2,300 crores — cash conversion at 80% of PAT, with surplus cash at Rs.21,000 crores at quarter end. Consolidated Q1 FY27 revenue of Rs.21,689 crores (+65% YoY), PAT of Rs.3,226 crores (+46% YoY).

Premium Segment Outperformance, Two-Wheeler Market Divergence

• Overall motorcycle growth slowed to 8–9% in Q1 FY27 — from 23–24% in Q4 FY26, while premium segments (150cc, 250cc) grew at 20%+. Sub-125cc posted low single-digit growth, attributed by management to inflation, the West Asia crisis, and a widening economic divide.
• 100cc segment declined from 55% to 46% of the market over 5–7 years — management prioritizes profitability over market share here, accepting share loss to protect margins.
• EV two-wheeler volumes surged ~67% in Q1 FY27 — driven by operating cost concerns as petrol prices crossed Rs.100/litre. Cannibalization primarily impacts ICE scooters, per internal anecdotal surveys.
• Bajaj Auto holds 23–24% market share in the EV scooter segment — currently #2 but very close to market leadership.
• Three-wheeler exports (ICE + EV) recorded a record 100,000 units — growing nearly 70% YoY, with dominant market share >65% of all three-wheeler exports from India.

10+ New Variants, Two New Brands, and Premium Push

• 10+ new variants to launch within Q2 FY27 — including two brand-new Pulsar models and two entirely new brands in the 125cc+ segment, targeting the premium space from August to September 2026.
• Two new brands (distinct from Pulsar) are being developed — with specific propositions to attract 100cc customers to upgrade to 125cc, expanding the total addressable market.
• Recent refresh of Pulsar NS and N series (since Q3 FY26) drove growth at 1.5x the industry rate — with market share gains in some states at a 2:1 ratio against competition.
• Probiking (KTM + Triumph) delivered another record quarter — domestic volumes of nearly 40,000 motorcycles, growing >50% YoY. KTM exports from India grew 20%+ and Triumph brand exports grew 40% YoY.
• Triumph available across ~210–215 stores — including 120 exclusive stores and ~90 combined KTM+Triumph outlets; store expansion continues similar to the strategy used to build KTM in India since 2011.

Chetak Turns EBITDA Positive, EV Portfolio Reaches Double-Digit Margin

• Electric portfolio (2W + 3W) maintained double-digit EBITDA margin in Q1 FY27 — Chetak electric scooter improved from EBITDA neutral to EBITDA positive in the reported quarter. Growing scale of the electric three-wheeler combined with Chetak's positive contribution drove the result.
• Chetak EV volumes grew ~80% YoY — EV business now 30% of domestic revenues. Chetak exclusive store network at 500–550 stores, targeting ~1,000 stores “in a couple of years” (from Q1 FY27).
• Current EV two-wheeler capacity is 50,000 units per month — near-term productivity measures expected to unlock 60,000 units. Specific Chetak EV capacity guided at ~60,000 units immediately. Overall two-wheeler capacity (ICE + EV) expanding from ~7 million to 9 million+ in the medium term.
• Bajaj Auto launched a premium E-rick — in the L3 e-rickshaw market (~45,000 units/month, 90% lead-acid). Management expects migration from lead-acid to lithium-ion as regulatory resistance grows (permits not renewed).
• E-rickshaw drivers upgrading to E-autos contributed to 100% growth in E-auto business — model 7012 (wide-body) is a top seller. Industry E2W sales at ~1,75,000 units (period unspecified).
• Management expects that in a couple of years 50% of scooters will be electric — with volumes reaching 2,00,000–2,50,000 units (period unspecified), and penetration already exceeding 60% in some states.

Inflation Headwinds, Cost Discipline, and Rs.10,000 Crore Payout

• Q1 FY27 commodity inflation of 4.5% of revenue — greater than the combined inflation of previous two FYs (FY25 and FY26). Pricing actions offset about 50% of inflation. Currency tailwind from rupee depreciation: realized USD/INR at 94.4 (vs 90.6 in Q4 FY26 and 85.6 in Q1 FY26).
• Cost inflation broadening beyond base metals — to components, electronics, labor, logistics, and energy. Q2 FY27 likely to reflect the full period impact. Management considers it premature to provide a precise inflation estimate given weekly volatility.
• CFO Dinesh Thapar indicated tight management of discretionary and establishment fixed costs in Q1 and Q2 FY27 — but marketing spend for new model launches will not be reduced. Cost savings from operating leverage expected to sustain in the near term.
• Combined dividend and buyback of Rs.10,000 crore paid out in July 2026 — executed via hybrid route (base dividend + buyback) due to favorable buyback taxation under the Finance Act. Payout ratio of 100% for FY26 profit of Rs.9,825 crore.
• Cash expected to rebuild to ~Rs.21,500 crore by end of FY27 — after the payout, cash stood at Rs.21,000 crore at end of Q1 FY27. Management committed to a 100% payout ratio for FY26 profit.
• Management undertaking 25% capacity expansion — from 7 million to 9 million units per annum, focusing on EVs, high-end motorcycles, and three-wheelers. Outlook for Q2 and rest of FY27 is promising, targeting 250,000+ export units per month.