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Bajaj Auto reported robust performance in Q1FY27

ICICIdirect Research 22 Jul 2026 DISCLAIMER

News: Bajaj Auto reported robust performance in Q1FY27. Total operating income for the quarter came in at ₹ 17,244, up ~37% YoY amidst 29% YoY growth in volumes at ~14.4 lakh units. EBITDA for the quarter came in at ₹3,595 crore with EBITDA margins at 20.9% (up 10bps QoQ). PAT in Q1FY27 stood at ₹2,983 crore (up 42% YoY). Blended ASP’s for Q1’27 stood at ₹ 1.14 lakh/unit (up ~3.1% QoQ). Margin resilience of 20.9% (gross margins down 100 bps vs. expectations of ~200 bps) was courtesy strong pricing power, favourable product mix, disciplined cost control and aptly supported by depreciated INR.

View: Management commentary remained highly optimistic despite facing severe commodity inflation, supply chain disruptions, logistics challenges and a ransomware attack during the quarter. Exports continue to be the biggest growth engine with management expecting shipments to sustainably exceed 2.5 lakh units per month going forward, while EVs have become a meaningful contributor, accounting for ~30% of domestic revenues with double-digit EBITDA margins and Chetak now turning EBITDA positive. The company is entering a strong product cycle with multiple launches across the 125cc+ motorcycle segment over the next few months, alongside capacity expansion from 7 million to 9 million units annually to address supply constraints in EVs, premium motorcycles and three-wheelers. Overall, management painted robust growth outlook across domestic, exports, and EV businesses. Bajaj Auto remains our top bet in the 2-W auto OEM space.

Impact: Positive

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