Bajaj Auto recorded a 37% year-on-year revenue increase in the first quarter of fiscal 2027, supported by a 54% rise in exports. The company is now expanding manufacturing capacity to 9 million units annually and scaling production for its Chetak electric scooter to meet rising demand. Investors are tracking how these investments impact margins and market share in competitive segments.
Detailed Coverage
Bajaj Auto has reported a strong start to fiscal year 2027, marking its highest-ever first-quarter performance. The company saw a 37% jump in revenue compared to the same period last year, a growth largely powered by its international business operations. Exports proved to be a major contributor, with volumes rising by 54% and crossing the 730,000-unit threshold. Management has indicated plans to maintain monthly export volumes above 250,000 units in the coming months.
Export Market Performance and Regional Challenges
The company’s international growth was led by significant gains in Africa, where it has captured a 60% market share in Nigeria. Operations in Latin America, particularly in Mexico, also provided stability. However, the company continues to navigate a more difficult environment in Asia, where demand remains soft, and the Middle East and North Africa (MENA) region, which faces ongoing logistical and geopolitical pressure. For investors, the ability of Bajaj Auto to offset these regional pressures through its dominance in Africa and strong Latin American presence remains a point of interest.
Scaling the Electric Vehicle Portfolio
Bajaj Auto’s electric vehicle segment is showing rapid development, with revenues almost doubling year-on-year. The Chetak electric scooter has become a core part of this growth, now contributing roughly 30% to the company's domestic revenue. To sustain this momentum, the company is scaling up production capacity for the Chetak to 60,000 units per month. Beyond scooters, Bajaj Auto is working on an in-house electric motorcycle platform, with a commercial launch anticipated in fiscal year 2028. This move signals a strategic attempt to capture a larger share of the emerging electric two-wheeler market.
Capacity Expansion and Premium Segment Focus
Beyond electric vehicles, the premium motorcycle segment, featuring KTM and Triumph brands, recorded a 60% revenue increase in the domestic market. To keep up with this demand and facilitate future product launches—including new Pulsar models and 125cc segment additions—the company is boosting its total manufacturing capacity. The target is to increase capacity from the current 7 million units to over 9 million units per year.
While these investments aim to drive long-term growth, investors will likely monitor how this significant capital spending influences future profit margins and cash flow. The company reported EBITDA margins at 20.9%, which were supported by favorable currency movements and internal cost-saving efforts. The sustainability of these margins will depend on the company’s ability to manage raw material costs and maintain product pricing power in a highly competitive two-wheeler sector.