Bajaj Auto, TVS Motor Report Strong Q2 FY26 Earnings Driven by Exports; Hero MotoCorp Shows Mixed October Sales

Leading two-wheeler manufacturers Bajaj Auto and TVS Motor Company have reported strong financial performance for the September 2025 quarter (Q2 FY26). Bajaj Auto saw its vehicle sales grow by 5.9% year-on-year to 1.29 million units, significantly boosted by a 24.4% increase in export sales. This export strength contributed to a 13.7% year-on-year rise in standalone revenue to ₹14,922 crore and a 23.6% year-on-year increase in net profit to ₹2,479.7 crore. Their core operating profit margin also improved by approximately 30 basis points to 20.4%.

TVS Motor Company reported an even stronger performance, with a 22.7% year-on-year growth in unit sales to a record 1,506,950 units. Their two-wheeler exports surged by 31% year-on-year, with popular models like TVS Apache driving overseas demand. Consequently, TVS Motor's standalone revenue increased by 29% year-on-year to ₹11,905.4 crore, and its net profit jumped by 36.9% year-on-year to ₹906.1 crore, with operating profit margins expanding by 130 basis points to 13%.

In contrast, Hero MotoCorp, which will announce its Q2 results on November 13, 2025, experienced a nearly 6% year-on-year fall in sales to 635,808 units in October 2025. This follows a strong September quarter. Bajaj Auto and TVS Motor reported year-on-year sales growth of 8% and 11% respectively in October 2025.

Both companies are also planning new model launches to capitalize on the demand pick-up. TVS Motor unveiled six new models, including electric scooters, while Bajaj Auto is preparing to launch new Avenger and electric Pulsar variants. Investors will closely watch these monthly sales figures and new product introductions.

Impact: This news positively impacts the Indian stock market by reinforcing the strength of the automotive sector, particularly two-wheelers. The strong export performance highlights diversification and global demand for Indian-made vehicles. Investors may see increased confidence in companies with strong export ties and effective product pipelines. The differing sales trends between companies might lead to sector rotation or increased scrutiny of individual company strategies. Impact Rating: 7/10

Difficult Terms: * Standalone revenue: Revenue earned by a company directly from its own operations, not including any subsidiaries. * y-o-y (year-on-year): A comparison of a company's performance in a given period (like a quarter or year) against the performance in the same period of the previous year. * Basis points: A unit of measure used in finance to denote small changes in percentage values. One basis point is equal to 0.01% (1/100th of a percent). Thus, 130 basis points equals 1.3%. * Q2 FY26 (Second Quarter of Fiscal Year 2025-2026): Refers to the financial results for the period from July 1, 2025, to September 30, 2025. * ROCE (Return on Capital Employed): A profitability ratio that measures how efficiently a company uses its capital to generate profits. * P/E (Price-to-Earnings) Ratio: A valuation ratio that compares a company's current share price to its earnings per share.