Bajaj Auto delivered a record-breaking performance in Q2 FY27, with standalone profit rising 35% YoY to INR 3,354 crore and revenue crossing the INR 20,000 crore milestone. Despite significant input cost inflation, the company maintained strong 20.9% EBITDA margins. Key drivers included robust export volumes and a rapidly growing electric vehicle segment, which is now margin-accretive at the corporate level.
Bajaj Auto Reports Record Q2 Performance
Standalone PAT rose 35% YoY to INR 3,354 crore, with consolidated revenue reaching INR 25,126 crore.
Reader Takeaway: Strong export growth and margin-accretive EV business drive record performance despite persistent commodity cost pressures.
What just happened
Bajaj Auto delivered a robust set of numbers for the second quarter of FY27, achieving record-breaking metrics in volume, revenue, and profit. The company successfully navigated a volatile environment, marked by hyperinflationary pressures, to post a 34% YoY increase in standalone revenue, surpassing the INR 20,000 crore mark.
Why this matters
This performance highlights Bajaj Auto's ability to maintain profitability through pricing actions and favorable currency realizations. The EBITDA margin stayed steady at 20.9%, even as the company dealt with input cost inflation equal to 3-3.5% of revenue. The inclusion of Bajaj Mobility AG contributed significantly to the consolidated revenue growth of 60% YoY.
Business and Operational Highlights
Export markets showed impressive strength with a record 7.8 lakh units sold, representing a 41% YoY increase. The electric vehicle segment is a key highlight, now contributing positively to margins at the corporate level. The company plans to scale Chetak production capacity to 80,000 units per month by Q4 to meet high demand.
Risks to watch
Commodity inflation in steel and copper remains a primary concern for management, with no immediate signs of cooling. Additionally, supply chain volatility continues to limit the company's ability to fully meet the underlying demand for its electric vehicles.
What to track next
Investors should closely monitor the impact of recent price hikes, which currently cover about 30% of estimated inflation. Furthermore, the company’s strategic focus on the 125cc+ motorcycle segment remains critical as it aims to regain market share, while production capacity expansion from 6.25 lakh to 7.75 lakh units per month over the next nine months remains a key growth indicator.