Bajaj Auto Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Bajaj Auto Ltd filed with BSE on 27 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Bajaj Auto reported its highest ever quarterly volumes, revenue, EBITDA and PAT in Q1 FY27, with revenue crossing Rs 17,000 crore and EBITDA margin at 20.9%. Management attributed the performance to strong growth across exports, domestic two-wheelers, electric vehicles and three-wheelers, despite disruptions from a ransomware attack, commodity inflation and supply chain issues that constrained availability. The company also detailed plans to expand manufacturing capacity from 7 million to 9 million units annually and to launch a series of new motorcycle models in the 125cc-plus segment over the coming months.
Numbers mentioned
Volumes: 1.4 million units (Q1 FY27)
p. 3
“Volumes at 1.4 million, revenue of INR17,000 crores, EBITDA of INR3,500 crores and PAT of INR3,000 crores, along with EBITDA margins of 20.9%.”
Rakesh Sharma, page 3 of the filed PDF · View the filing
Revenue: INR17,244 crores (Q1 FY27)
p. 9
“revenue from operations crossed the INR17,000 crores mark for the very first time, coming in at INR17,244 crores, representing a robust 37% year-on-year growth.”
Dinesh Thapar, page 9 of the filed PDF · View the filing
EBITDA: INR3,596 crores (Q1 FY27)
p. 9
“On EBITDA, the quarter came in at INR3,596 crores, again, an all-time high, with a strong 45% year-on-year growth.”
Dinesh Thapar, page 9 of the filed PDF · View the filing
EBITDA margin: 20.9% (Q1 FY27)
p. 9
“EBITDA margins inched up to 20.9%, an improvement of 10 basis points sequentially despite the hyperinflationary commodity environment that I'd spoken about.”
Dinesh Thapar, page 9 of the filed PDF · View the filing
Profit after tax: a tad under INR3,000 crores (Q1 FY27)
p. 9
“profit after tax coming in a tad under INR3,000 crores, again, a new high for the company and up 42% year-on-year.”
Dinesh Thapar, page 9 of the filed PDF · View the filing
Free cash flow: over INR2,300 crores (Q1 FY27)
p. 10
“We generated over INR2,300 crores of free cash flow during this quarter, almost double that of the same period last year, translating into a cash conversion of almost 80% of profit after tax.”
Dinesh Thapar, page 10 of the filed PDF · View the filing
Cash on balance sheet: in excess of INR21,000 crores (as at end June 2026)
p. 10
“The balance sheet continues to remain very healthy with surplus cash in excess of INR21,000 crores at the end of the June quarter, well managed and providing sufficient fuel for future growth investments, strategic opportunities and improved shareholder returns.”
Dinesh Thapar, page 10 of the filed PDF · View the filing
Consolidated revenue: INR21,689 crores (Q1 FY27)
p. 10
“standalone revenues of INR17,200 crores translated into consolidated revenues of INR21,689 crores, reflecting a 65% year-on-year growth, while consolidated profit after tax came in at INR3,226 crores for the quarter, up 46% year-on-year.”
Dinesh Thapar, page 10 of the filed PDF · View the filing
BACL total income: crossed INR1,100 crores (Q1 FY27)
p. 11
“Total income crossed INR1,100 crores, while profit after tax for the quarter came in at INR227 crores, more than doubling the same time over last year.”
Dinesh Thapar, page 11 of the filed PDF · View the filing
BACL assets under management: INR20,000 crores mark (Q1 FY27)
p. 11
“assets under management have now hit the INR20,000 crores mark, representing a growth of over 70% year-on-year.”
Dinesh Thapar, page 11 of the filed PDF · View the filing
Exports volume: 7,32,000 units (Q1 FY27)
p. 3
“the business unit established a new high of 7,32,000 units in the quarter and USD 735 million revenue in the quarter.”
Rakesh Sharma, page 3 of the filed PDF · View the filing
Realized USD-INR rate: INR94.4 (Q1 FY27)
p. 8
“The rupee depreciated through Q1, with a realized USD-INR rate coming in at INR94.4 versus INR90.6 in the previous quarter and INR85.6 in the same quarter last year.”
Dinesh Thapar, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Manufacturing capacity — 9 million units per annum · progressively over the medium term
stated firmly by Rakesh Sharma
p. 6
“we are undertaking an expansion of capacity by almost 25% from the current 7 million units per annum across different businesses to progressively go up to 9 million units per annum.”
Rakesh Sharma, page 6 of the filed PDF · View the filing
Exports run rate — beyond 2,50,000 units per month · this quarter and onwards
stated firmly by Rakesh Sharma
p. 4
“we are looking at moving exports to beyond the 2,50,000 per month level this quarter and onwards.”
Rakesh Sharma, page 4 of the filed PDF · View the filing
125cc segment product launches — 2 new brands in the 125cc segment plus new Pulsar and facelifts · within the next 6 weeks / by October
stated firmly by Rakesh Sharma
p. 5
“Our aim is to accomplish this exhaustive portfolio makeover within the next 6 weeks.”
Rakesh Sharma, page 5 of the filed PDF · View the filing
Chetak EV two-wheeler capacity — 60,000 units · immediate term
stated firmly by Rakesh Sharma
p. 13
“to address your specific question on Chetak, it will be about 60,000 units in the immediate term.”
Rakesh Sharma, page 13 of the filed PDF · View the filing
Cash on balance sheet — INR15,000 crores thereabouts · by end of financial year
stated conditionally by Dinesh Thapar
p. 17
“I expect it to really build back to INR15,000 crores thereabouts by the end of the financial year, at levels that you've been used to seeing at the end of each financial year.”
Dinesh Thapar, page 17 of the filed PDF · View the filing
Chetak store network — 1,000 stores · a couple of years
stated as an aspiration by Rakesh Sharma
p. 20
“I can see 1,000 stores coming in a couple of years.”
Rakesh Sharma, page 20 of the filed PDF · View the filing
Discretionary and fixed costs — quarter 2
stated firmly by Dinesh Thapar
p. 16
“specifically on fixed costs is where we will be quite discerning about what we will spend in quarter 2 as well.”
Dinesh Thapar, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the lower end of the market is under economic pressure while the upper half is stronger, and EV adoption is being driven by fuel cost concerns, cannibalizing ICE scooters more than motorcycles.
Answered by Rakesh Sharma
Asked by Kapil Singh: Why is demand weak in the sub-125cc segment despite the GST cut, and is there a shift from ICE to EV?
p. 12
“the impact on different segments was different. And this actually reflects the structure of the Indian economy and what the Indian economy is perhaps going through in the sense that the upper half of the society are economically much, much stronger and the people down the pyramid have weakened.”
Rakesh Sharma, page 12 of the filed PDF · View the filing
Management said EV two-wheeler capacity is currently constrained at 50,000 units, targeted to rise to 60,000, with further expansion planned across categories.
Answered by Rakesh Sharma
Asked by Kapil Singh: What is the capacity expansion plan for EV two-wheelers and three-wheelers, and where is profitability now?
p. 12
“we are right now at 50,000 units. We are limited at that for EV two-wheelers. And immediately through some productivity measures, both at our end and with the vendors, we hope to unlock it at 60,000.”
Rakesh Sharma, page 12 of the filed PDF · View the filing
Management confirmed two new, distinct brands (not Pulsar) will be introduced with different customer propositions.
Answered by Rakesh Sharma
Asked by Gunjan Prithyani: Are the new product launches all on the Pulsar platform, or are new brand nameplates being introduced?
p. 15
“At this point of time, we are looking at a different brand because the proposition will be different from Pulsar.”
Rakesh Sharma, page 15 of the filed PDF · View the filing
Management said discretionary and fixed costs will remain tightly controlled in Q2, though marketing spend for new launches will not be cut.
Answered by Dinesh Thapar
Asked by Raghunandhan N.: Is the reduction in other expenses as a percentage of sales sustainable going forward?
p. 16
“specifically on fixed costs is where we will be quite discerning about what we will spend in quarter 2 as well.”
Dinesh Thapar, page 16 of the filed PDF · View the filing
Management explained cash will dip after the July dividend and buyback payouts and rebuild through the year, having already committed to a 100% payout ratio via a hybrid dividend-plus-buyback approach.
Answered by Dinesh Thapar
Asked by Rakesh Kumar: Given rising cash balances, will the company continue buybacks or shift towards higher dividend payouts?
p. 17
“this year, we opted for the hybrid route of doing a base dividend plus the balance as a buyback only because with the changed regulations under the Finance Act, the taxation for buyback was quite attractive for non-promoter shareholders.”
Dinesh Thapar, page 17 of the filed PDF · View the filing
Management said KTM is run independently but there is ongoing R&D collaboration and a substantial amount of manufacturing will be based in India, though not framed as becoming the sole global hub.
Answered by Rakesh Sharma
Asked by Amit Hiranandani: Is India being positioned as a global manufacturing hub for KTM, and what R&D collaboration exists?
p. 18
“I wouldn't go as far as to say that it will become the global manufacturing hub.”
Rakesh Sharma, page 18 of the filed PDF · View the filing
Management said regulatory pressure on lead-acid rickshaws and city restrictions are driving upgrades to lithium-ion and even to e-autos, despite financing and pricing challenges.
Answered by Rakesh Sharma
Asked by Pramod Amthe: How is the company addressing financing challenges for e-rickshaw customers, and does it create an upgrade funnel to e-three-wheelers?
p. 19
“there is an issue of getting the loans, there is an issue about getting loans from organized financials like BACL and there is an issue about the price being higher.”
Rakesh Sharma, page 19 of the filed PDF · View the filing
Management said the combined electric portfolio EBITDA margin remains double-digit, with Chetak moving from EBITDA-neutral to EBITDA-positive.
Answered by Dinesh Thapar
Asked by Pramod Amthe: What is the profitability of the electric two-wheeler and three-wheeler portfolio?
p. 21
“our EBITDA margin for the electric portfolio business comprising two and three-wheelers continues to remain double digit as we had queued in the last quarter.”
Dinesh Thapar, page 21 of the filed PDF · View the filing
Risks flagged
Ransomware attack that led to suspension of operations
p. 3
“It was a tough quarter with RM inflation, supply chain and logistics disruptions as well as a ransomware attack, which you may have read about, but it was defended comprehensively and successfully.”
Rakesh Sharma, page 3 of the filed PDF · View the filing
Availability impaired by disruptions, more in exports, high-end bikes and EVs
p. 3
“All of these above issues combined impaired availabilities by about 10% to 15%, more so in exports, high-end bikes and EVs.”
Rakesh Sharma, page 3 of the filed PDF · View the filing
Hyperinflationary commodity environment
p. 7
“It was clearly a hyperinflationary commodity environment with virtually the entire basket witnessing sharp increases.”
Dinesh Thapar, page 7 of the filed PDF · View the filing
Fuel availability challenge from curtailment of industrial LPG supplies
p. 8
“fuel availability became a significant challenge early in the quarter following the curtailment of industrial LPG supplies.”
Dinesh Thapar, page 8 of the filed PDF · View the filing
Geopolitical developments disrupting maritime logistics and raw material supply
p. 8
“geopolitical developments in West Asia led to force majeure declarations by certain global suppliers and disrupted maritime logistics, resulting in tightness across key raw materials, particularly aluminum alloys and polymers.”
Dinesh Thapar, page 8 of the filed PDF · View the filing
Manpower availability challenges due to cost of living and election-related migration
p. 8
“We also experienced localized manpower availability challenges during parts of the quarter, driven by higher cost of living arising from spiralling LPG costs and workforce migration due to elections.”
Dinesh Thapar, page 8 of the filed PDF · View the filing
Broadening cost inflation beyond base metals into components, labour, logistics and energy
p. 11
“The cost pressures have become more broader, with proprietary components, electronics, electrical parts, labour, logistics and energy and conversion now moving up simultaneously and meaningfully.”
Dinesh Thapar, page 11 of the filed PDF · View the filing
Uncertainty over how much currency support will continue
p. 11
“How much of that support continues will naturally depend on how the rupee evolves over the coming months in the context of the initiatives and measures announced by RBI.”
Dinesh Thapar, page 11 of the filed PDF · View the filing
Weakness in the entry-level 100cc/125cc motorcycle segment losing market share
p. 16
“in the 100cc segment, we are losing share. And that is what is dragging the overall market share down.”
Rakesh Sharma, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.