Domestic motorcycles performed exceptionally well in the 125 cubic capacity (cc) and above segment, supported by robust demand for the Pulsar portfolio following product upgrades and targeted activations, driving quarterly retail volumes to record levels.

Photograph: Courtesy, Bajaja Auto

Two-wheeler (2W) major Bajaj Auto on Friday posted its highest ever quarterly revenue and profit during the third quarter of 2025-26 (Q3FY26).

Bajaj Auto’s consolidated net profit for the quarter grew by 25 per cent year-on-year (Y-o-Y) to Rs 2,749 crore, with the revenue also growing 23 per cent to Rs 16,204 crore.

This was achieved by a richer product mix and double-digit growth across all segments, which was backed by a favourable festive season and goods and services tax (GST)-led momentum.

GST cut and Bajaj Auto

While the entry-level segments have benefited the least from GST cuts, premium segments have seen the strongest uplift due to improved consumer sentiment for the firm.

Domestic motorcycles performed exceptionally well in the 125 cubic capacity (cc) and above segment, supported by robust demand for the Pulsar portfolio following product upgrades and targeted activations, driving quarterly retail volumes to record levels.

Speaking to the media post-results, Rakesh Sharma, executive director, Bajaj Auto, said: “The third quarter marked peak performance for us, building on a strong Q2, supported by a favourable demand environment after GST rationalisation.

“The industry moved into double-digit growth, led by higher-displacement and premium segments, which aligns well with our portfolio, while exports also delivered strong growth. When you put together domestic ICE (internal combustion engine), electric vehicles(EVs), and exports, it resulted in an exceptionally strong quarter.”

On the demand outlook, Sharma said the company continues to see encouraging trends in the near term.

“Growth momentum remains healthy into the next few months, aided by festive and wedding season demand, though sustainability will depend on inflation trends, especially fuel and rental inflation,” he added.

The results were announced after market hours. Bajaj’s shares closed 0.7 per cent higher, ending the day’s trade at Rs 9,583 apiece on the BSE.

The domestic business posted record revenues in Q3FY26 largely on the back of the electric portfolio, which accounted for 25 per cent of domestic revenue in the quarter.

Electric scooter

The Chetak electric scooter (e-scooter) saw a strong rebound in the quarter after supply constraints eased, helping Bajaj regain the number-two position in the e-scooter market.

The company has also expanded the Chetak range with a new entry-level variant aimed at younger buyers and women.

“EVs now contribute 25 per cent of Bajaj’s domestic revenues, probably making us India’s largest EV player, with 25 production linked incentive (PLI)-certified models.

“As a result, our EV portfolio has moved into double-digit profitability, compared to losses just a year ago,” Sharma added.

Earlier, EV growth dipped during the festive ICE-led surge, but it has now returned to normal levels — 15 to 20 per cent for e-scooters, and 50 to 60 per cent for electric three-wheelers (e3Ws).

Exports

Exports rebounded strongly in Q3FY26, crossing the 600,000 unit mark after 15 quarters, with export revenue at Rs 544 crore, while sustaining double-digit Y-o-Y growth.

The performance was led by double-digit growth in Africa, Asia, and Latin America.Overall export volumes grew in the range of 15-20 per cent, with export revenues heading towards an all-time high in dollar terms.

Further on exports, Sharma said disruptions such as tariff hikes or currency volatility in markets like Mexico, South Africa, and others are part of doing business in emerging markets.

Mexico remains a key market, supported by local manufacturing through partners, he added.