Bajaj Auto's Q1 Revenue Jumps 65% as Profitability Takes a Hit
Bajaj Auto reported a 65% surge in quarterly revenue, but profit growth lagged and net margins contracted sharply from the previous quarter.
Bajaj Auto's Q1 FY27 earnings show explosive revenue growth of 65% year-on-year, though profit growth was slower and margins fell sequentially.
Bajaj Auto kicked off its new fiscal year with a powerful surge in sales, though profitability showed signs of strain. The company's revenue for the quarter ended June 2026 soared 65.1% year-on-year, a remarkable acceleration from recent quarters. However, profit after tax grew at a slower 44.3% over the same period, indicating margin pressure.
The divergence was even more pronounced on a sequential basis. While revenue climbed 21.6% from the March quarter, profit actually declined by 8.7%. This pushed the net profit margin down to 14.7%, a significant drop from 19.6% in Q4 FY26 and 16.8% in the same quarter last year. The company's trailing-twelve-month (TTM) net profit margin stands at 16.2%, suggesting the latest quarter's performance was below its recent average.
A look at the last five quarters reveals the underlying trends:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 21,688.83YoY +65% | 17,832.46 | 13,133.35 |
| Profit (₹ Cr) | 3,188.75YoY +44% | 3,492.21 | 2,210.44 |
| Net Profit Margin | 14.7%YoY -13% | 19.6% | 16.8% |
The table shows a clear, multi-quarter uptrend in revenue, while profit has been more volatile. The company's strong top-line performance is likely driven by its expanding electric vehicle portfolio and the recent launch of its CNG motorcycle.
Key Points
- The company maintains a robust balance sheet with a high return on equity of 28.7% and a manageable debt-to-equity ratio of 0.57.
- The stock has delivered impressive returns, gaining 42.4% over the past year and 153.4% over three years.
- Despite the strong share price performance, Bajaj Auto trades at a price-to-earnings (P/E) ratio of 22.8, which is at a 16.8% discount to its industry peers.
The immediate challenge for Bajaj Auto will be to translate its formidable sales momentum back into stronger bottom-line growth in the coming quarters.
Live Chart
· BAJAJ-AUTO
(BSE)
ISIN: INE917I01010
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.