Bajaj Auto Ltd reported a strong set of numbers for the third quarter of FY26, with profit after tax (PAT) rising 19% year-on-year to ₹2,503 crore, supported by higher volumes, favourable currency movements and an improved product mix. Revenue from operations increased by the same margin to ₹15,220 crore, an absolute rise of ₹2,413 crore over the corresponding quarter last year, marking the company’s highest-ever quarterly revenue.

Profit before exceptional items grew faster at 21% year-on-year to ₹2,549 crore. The reported PAT includes a one-time adjustment related to the reassessment of employee benefit obligations following the notification of revised Labour Codes in November 2025.

Operating margins expand sequentially

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 22% year-on-year to ₹3,161 crore during the quarter. EBITDA margin improved to 20.8%, compared with 20.2% in Q3 FY25 and 20.5% in the previous quarter.

Margin expansion was aided by currency tailwinds and benefits under the production-linked incentive (PLI) scheme, which helped offset input cost pressures during the festive season and the higher contribution from electric two-wheelers, which typically have lower margins.

Domestic business supported by EVs and premium motorcycles

Domestic operations posted record revenues, driven by strong festive demand and improved retail execution. Electric vehicles accounted for around 25% of domestic revenues during the quarter, with Bajaj Auto’s electric portfolio surpassing its full-year FY25 revenue partway through Q3.

In motorcycles, the company recorded its largest-ever quarterly volumes in the 125cc and above segment, led by improved traction in the Pulsar range following product upgrades. Premium brands KTM and Triumph reported nearly 50% year-on-year growth in domestic volumes and revenue, aided by portfolio expansion and pricing measures to absorb higher GST on motorcycles above 350cc.

Exports cross 600,000 units after prolonged slowdown

Exports rebounded sharply, with overseas volumes exceeding 610,000 units in Q3 FY26, the first such instance in 15 quarters. Growth was led by Africa and Asia, while Latin America continued to deliver strong competitive performance.

Exports of commercial vehicles rose over 50% year-on-year. Overall, total volumes across domestic and export markets increased 10% to 1.34 million units during the quarter.

Cash generation remains strong

For the first nine months of FY26, Bajaj Auto generated free cash flow of around ₹5,200 crore, up more than 70% year-on-year. The company closed the period with surplus cash of approximately ₹15,000 crore, after dividend payouts and capital infusion into subsidiaries.