Bajaj Auto is expanding its portfolio with two new brands and three new products to regain domestic market share. The strategy includes a major overhaul of the Pulsar 125 and 150 models to compete with rising rivals. This follows strong Q1 FY27 results, where the company recorded a 42% jump in net profit driven by record exports and robust electric vehicle sales.
Bajaj Auto is aggressively expanding its product lineup for the 2027 fiscal year, aiming to regain market share in the domestic motorcycle segment. The company plans to introduce two entirely new brands alongside three additional product variants. This initiative is part of a broader plan to launch 12 different models by September 2026, which includes significant facelifts for the long-standing Pulsar 125 and 150 series.
The Pulsar franchise remains a critical revenue pillar for the company, contributing over ₹11,000 crore annually. However, Bajaj Auto has faced stiff competition in the 125cc commuter segment from rivals like Hero MotoCorp, TVS Motor, and Honda. These competitors have successfully captured interest with sporty designs and digital features. To counter this, Bajaj is equipping its revamped Pulsar models with modern hardware, such as monoshock suspensions, new gearboxes, and digital navigation displays.
This strategic refresh follows a strong financial start to the fiscal year. In Q1 FY27, Bajaj Auto reported a standalone net profit of ₹2,983 crore, a 42.3% increase compared to the previous year, with revenue rising 37% to ₹17,244 crore. Supporting this growth, the company is actively expanding its annual manufacturing capacity from 7 million to 9 million units to handle higher demand across its domestic and export businesses.
The electric vehicle division is also a significant contributor. The Chetak brand has seen an 80% year-on-year growth in volumes and now accounts for approximately 30% of the company's domestic revenue. While the overall outlook remains supported by record export levels, investors should monitor input costs, which impacted margins by about 4.5% of revenue during the first quarter. Although the company has used price adjustments and operational efficiencies to absorb some of this pressure, commodity price volatility and supply chain constraints remain key risks. The effectiveness of these new launches in capturing market share, combined with the company's ability to manage costs, will be the most important factors for the coming quarters.