Bajaj Mobility AG, a key subsidiary of Bajaj Auto, has successfully turned profitable, reporting an EBITDA of EUR 37.6 million for H1 2026 compared to a loss of EUR 183.3 million in H1 2025. With revenue jumping 65% YoY to EUR 701.4 million and the successful EUR 550 million refinancing of KTM AG, the company’s restructuring efforts are delivering clear financial stabilization.
Bajaj Mobility Reports H1 2026 Turnaround
Group Revenue: EUR 701.4 Million (+65% YoY); EBITDA: EUR 37.6 Million (Turnaround from Loss).
Reader Takeaway: Improved operational efficiency and debt restructuring are fueling recovery, though negative free cash flow remains a constraint.
What just happened
Bajaj Mobility AG, the global subsidiary of Bajaj Auto, has released its H1 2026 financial results showing a significant recovery following intense restructuring. The company achieved a positive EBITDA of EUR 37.6 million for the first half, a major swing from the EUR 183.3 million loss recorded in the same period last year. Notably, the group achieved a positive EBIT of EUR 1.3 million in the second quarter of 2026.
Why this matters
The financial results provide tangible proof that the restructuring strategy is working. With a 65% surge in group revenue to EUR 701.4 million and motorcycle revenue nearly doubling, the entity is showing signs of normalized operations. The successful refinancing of EUR 550 million by KTM AG—a 100% owned subsidiary—further strengthens the balance sheet and eases interest obligations.
Operational Performance
The company sold 89,004 motorcycles in H1 2026. Total worldwide sales, including 58,568 units from the parent entity, reached 147,572 units. Management has also prioritized inventory control, reducing global stock levels by 10,190 units to stabilize dealer networks.
Risks to watch
Despite the operational turnaround, free cash flow remains negative at EUR -22.1 million. While this is an improvement from the EUR -38.5 million deficit seen in H1 2025, the company continues to burn cash as it navigates the post-restructuring phase.
Context metrics
- EBITDA margin: 5.4%.
- Equity: EUR 339.9 million.
- Equity Ratio: 21.5%.
- Fixed Cost Reduction: EUR 65.8 million (excluding restructuring gains).
What to track next
Investors should monitor the company's ability to maintain positive EBIT margins and further reduce its negative free cash flow in the upcoming quarters as inventory levels reach target stability.