Bajaj Auto Posts 35% Profit Growth in Q2

Net Sales hit Rs 20,003 crore, while Profit After Tax (PAT) stood at Rs 3,354 crore for the quarter.

Reader Takeaway: Strong export recovery and EV portfolio expansion drive margins; geopolitical supply chain risks remain a pressure point.

What just happened

Bajaj Auto delivered a robust set of numbers for the second quarter of FY27, beating market estimates on all fronts. Net sales climbed 34.1% to Rs 20,003 crore. The EBITDA grew by 36.7% to Rs 4,171 crore, with margins expanding 40 bps to 20.9% despite input cost inflation. The Earnings Per Share (EPS) saw a healthy rise of 36.9% year-on-year to Rs 121.6.

Why this matters

The performance underscores the efficacy of the company’s product mix and cost optimization efforts. The 41% surge in export volumes to 7.8 lakh units is a major highlight, indicating a strong recovery in international markets. Furthermore, the company’s captive financing arm, Bajaj Auto Credit Limited (BACL), is showing significant traction with a PAT of Rs 243 crore, a growth of 85% year-on-year.

Growth Drivers

• EV Leadership: The Chetak portfolio is contributing significantly to margins. The company is actively scaling monthly production capacity to 80,000 units by Q3FY27.
• Capacity Expansion: Bajaj Auto is increasing its total annual production capacity from 6.25 lakh to 7.75 lakh units within the next nine months to meet surging demand.

Risks to watch

Investors should monitor geopolitical tensions, which could disrupt export supply chains and adversely impact cost structures. Additionally, the execution of aggressive EV targets remains sensitive to market adoption rates.

What to track next

The company's ability to maintain its quarterly export run rate of 7.5 lakh units and the successful ramp-up of EV production capacity will be the key indicators for sustained growth in the coming quarters.