Bajaj Auto Shatters Records! Q2 Sees All-Time High Revenue, Export Boom Fuels Growth – What's Next for Investors?

Bajaj Auto has reported an all-time high revenue for Q2 FY26, marking a significant financial milestone. The company's net revenues saw a healthy 13.7 percent year-on-year increase, primarily fueled by strong export volumes in both two-wheeler (2W) and three-wheeler (3W) segments, along with higher realisations. Exports were a standout performer, with the Commercial Vehicle (CV) segment alone showing a sharp 67 percent year-on-year growth, and the overall export business crossing 200,000 units in October for the first time in nearly 40 months. The management has guided for an impressive 15-20 percent growth trajectory in exports moving forward, with a strategic focus on premium segments. The Electric Vehicle (EV) segment also displayed strong momentum; the Chetak scooter regained market leadership in October, and the company has successfully transitioned its motor portfolio to use lower rare earth magnets. Bajaj Auto plans to launch another electric two-wheeler early next year, and EVs now contribute 18 percent to domestic revenue with double-digit EBITDA margins. Domestically, the company saw market share gains in the 125cc+ and 150cc+ motorcycle segments, expecting further demand stimulation from recent GST rate cuts. The company also has an active product pipeline, including a new Pulsar variant launch in the next two to three months and an all-new Chetak model by early 2026. Efforts are also underway with Triumph and KTM to develop models below 350cc to benefit from lower GST rates. Impact This news signifies strong operational performance and strategic execution by Bajaj Auto. The record revenue, robust export growth, and positive EV segment development indicate a healthy financial outlook, which is very positive for investors and the company's stock performance. Rating: 8/10.

Difficult Terms Explained: YoY (Year-on-Year): A comparison of financial or operational performance between the current period and the same period in the previous year. Realisation: The actual price or amount of money a company receives from selling its products or services. EBITDA margin: A profitability ratio that measures a company's operating performance by dividing its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by its total revenue. It indicates efficiency in core operations. Basis points: A unit of measure used in finance to describe small percentage changes. One basis point is equal to 0.01% or 1/100th of a percent. Operating leverage: The degree to which a company's costs are fixed versus variable. High operating leverage means a small change in sales can lead to a larger change in operating income. ICE (Internal Combustion Engine): An engine that generates power by burning fuel (like petrol or diesel) inside a combustion chamber. OEM (Original Equipment Manufacturer): A company that manufactures products or components that are used in another company's finished product. Homologation: The official process of certifying that a vehicle or its components meet all required safety, environmental, and regulatory standards to be sold in a specific market. HRE/LRE magnets (High Rare Earth / Low Rare Earth magnets): Magnets used in electric motors. High Rare Earth magnets are more powerful but expensive and subject to supply chain risks, while Low Rare Earth magnets are more readily available and cost-effective.