Bajaj Mobility AG Reports Strong FY2025 Results Driven by Restructuring Gain

Bajaj Mobility AG reported revenue of EUR 1.009 billion and a net profit of EUR 590 million for the financial year 2025.

Financial Results and Operations

Bajaj Mobility AG, a subsidiary of India's Bajaj Auto, reported its financial results for fiscal year 2025. The company posted revenue of EUR 1.009 billion. Net profit reached EUR 590 million, boosted by a EUR 1.193 billion restructuring gain. EBITDA for the period was EUR 874 million. Key operational improvements included a significant reduction in net debt to EUR 798 million and a decrease in inventories by 101,153 units. Sales volume reached 209,704 units. The company also achieved its most successful year in motorsport, securing 29 championship titles across its brands.

Why This Matters

This financial report signals a significant turnaround for Bajaj Mobility AG, demonstrating enhanced financial discipline and strategic clarity. The large restructuring gain indicates successful capital and debt management, positioning the company on a stronger financial footing. By divesting non-strategic areas and sharpening its focus on core motorcycle brands like KTM and Husqvarna, Bajaj Mobility AG is streamlining operations for future profitable growth and innovation.

Company Background and Strategy

Bajaj Mobility AG is the European arm of Bajaj Auto, managing key premium motorcycle brands including KTM and Husqvarna. Over the past year, the company has undertaken a comprehensive financial reorganization and refinancing. This strategic move has bolstered its capital structure. Its focus has shifted definitively towards its high-margin motorcycle segments, moving away from ventures like the bicycle segment.

What Changes Now

• Bajaj Mobility AG's financial base is strengthened, ready for profitable expansion in 2026.
• The business now has a sharper strategic alignment with its core, high-potential motorcycle segments.
• Divestment of non-strategic areas like the bicycle segment simplifies the operational structure.
• Customers can expect new model launches in 2026, including models like the KTM 990 RC R.
• Premium manufacturer's warranty for KTM and Husqvarna street-legal models (MY2025 onwards) has been extended to four years.

Risks to Watch

Management has acknowledged the potential negative impact of current geopolitical uncertainties and is actively evaluating countermeasures.

Peer Comparison

While Bajaj Mobility AG reported EUR 1.009 billion in revenue and a EUR 590 million profit (boosted by a EUR 1.193 billion gain) for FY2025, its parent, Pierer Mobility AG (which includes KTM, Husqvarna, GASGAS), reported higher consolidated revenue of €2.47 billion for the same period. Pierer Mobility AG's net profit stood at €130 million, highlighting the specific impact of the restructuring gain on Bajaj Mobility AG's reported net profit.

What to Track Next

• Execution of the new model launch strategy, including the KTM 990 RC R and KTM 1390 Super Adventure S Evo.
• Sustained profitability and innovation drive in FY2026.
• Further progress in inventory reduction and operational efficiency.
• Customer reception to expanded premium warranties and new offerings.
• Management's response and mitigation strategies for geopolitical risks.