Bajaj Auto LimitedQ1 FY27 Results & Financial Update

Africa retail doubled year-on-year, driven by pre-election institutional demand in Nigeria and the updated Boxer 125 Heavy Duty, capturing nearly 60% retail market share.

Mexico continued strong performance supported by high-end NS series models and a 3% tariff supply chain, while Brazil achieved 50%+ retail growth across 75 top-plus stores.

Upper-tier demand remained strong with 150cc+ motorcycles and EV scooters growing robustly (20%+ and ~70% respectively), whereas the entry-level 100cc-125cc segments remained soft with low single-digit growth amid lower-pyramid economic pressures.

Electric vehicle demand surged due to operating economics and consumer fuel cost sensitivity, with Chetak growing nearly 80% YoY and primarily cannibalizing ICE scooters.

Undertaking a capacity expansion of nearly 25% from the current 7 million units per annum to progressively reach 9 million units per annum across EVs, high-end motorcycles, and three-wheelers.

Chetak electric two-wheeler capacity is currently limited at 50,000 units per month, with immediate productivity measures targeting an increase to 60,000 units.

Implemented judicious price increases through April and June to offset nearly half of the severe commodity inflation impact, with the balance absorbed via dollar realization and discretionary cost rationalization.

Realized USD-INR exchange rate averaged INR94.4 compared to INR90.6 in the previous quarter and INR85.6 in Q1 FY26, providing a structural cushion against cost inflation.

Standalone cash balance stood at over INR21,000 crores as of June 2026, with an expected dip in July following a cumulative ~INR10,000 crore payout for annual dividends and the concluded share buyback.

Targeting to scale monthly exports beyond 250,000 units starting from Q2 and onwards.

Planning an exhaustive domestic motorcycle portfolio makeover within the next 6 weeks, rolling out 10 new variants and upgrades in the 125cc+ range.

Management noted that lower-pyramid economic weakness explains soft entry-level segments while upper-tier and EV segments surge; EV two-wheeler capacity is capped at 50,000 units, targeting 60,000 soon.

Management explained the deliberate prioritization of the 125cc+ profitable heartland over low-margin entry segments, confirming upcoming launches of 10 new variants in the next 6 weeks and 2 new brands later in the fiscal year.

Dinesh Thapar confirmed that fixed and discretionary overhead costs will remain tightly controlled in Q2, while marketing and product launch spends required for market competitiveness will be protected.

Management clarified that post the July dividend and buyback cash outflows (~INR10,000 crores), surplus cash will organically rebuild toward the historical ~INR15,000 crores level by fiscal year-end through ongoing cash generation.

Management reiterated that KTM operates as an independent company while collaborating on small-cc platforms via Indian manufacturing, and Triumph retail reach spans ~210-215 touchpoints.

Management highlighted the transition from lead-acid to lithium-ion e-rickshaws (Riki) despite financing hurdles, and noted plans to progressively take the Chetak EV franchise to international markets beyond the Indian subcontinent.