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Bajaj Auto Q3 FY26 Analysis: Record-Breaking Performance as Exports and EVs Scale New Peaks

Lesson 217/323 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

Bajaj Auto Q3 FY26 Analysis: Record-Breaking Performance as Exports and EVs Scale New Peaks

Bajaj Auto Limited (NSE: BAJAJ-AUTO) has delivered a historic performance for the quarter ended December 31, 2025, crossing the ₹15,000 crore revenue mark for the first time. This "World's Favourite Indian" manufacturer is successfully navigating a multi-front transition, scaling its electric vehicle portfolio while orchestrating a robust recovery in international markets.

Section 1: The Financial Growth Table (Standalone)

The following table summarizes Bajaj Auto's financial performance, showcasing record peaks across core metrics.

Metrics	Q3 FY26 (Current)	Q3 FY25 (YoY)	YoY Growth %	Q2 FY26 (QoQ)	QoQ Growth %
Volume (Total Units)	1,341,252	1,224,472	10%	1,294,120	4%
Revenue from Ops	₹15,220 Cr	₹12,807 Cr	19%	₹14,922 Cr	2%
EBITDA	₹3,161 Cr	₹2,581 Cr	22%	₹3,052 Cr	4%
PAT (Rep. Post-Excep)	₹2,503 Cr	₹2,109 Cr	19%	₹2,480 Cr	1%
EPS (Standalone)	₹89.7	₹75.5	19%	₹88.8	1%
EBITDA Margin %	20.8%	20.2%	+60 bps	20.5%	+30 bps

Segmental Revenue Share (Consolidated)

Segment	Revenue (Q3 FY26)	Revenue Share %	Segment PBT	YoY Growth (Rev)
Automotive	₹15,429 Cr	92.7%	₹3,212 Cr	+20.2%
Financing (BACL)	₹909 Cr	5.5%	₹287 Cr	+170.1%
Investments	₹302 Cr	1.8%	₹302 Cr	-11.8%

Section 2: Sector-Specific KPIs & Concall Insights

Volume Particulars: 2W & 3W Growth Matrix

Growth was led by the Commercial Vehicle (CV) segment and a resurgent Export business.

Particulars	Q3 FY26 (Units)	YoY Growth %	Weightage %
Two-Wheelers (Domestic)	601,208	2%	44.8%
Two-Wheelers (Exports)	531,175	14%	39.6%
Commercial Vehicles (Domestic)	129,829	9%	9.7%
Commercial Vehicles (Exports)	79,040	56%	5.9%
Total Volume	1,341,252	10%	100%

Critical Insights from the Q3 FY26 Concall

Pulsar Offensive: Management has launched 7 product interventions since November and plans 8 more upgrades/refreshes in the next 4 months to reclaim market share in the 150cc+ segment.
EV Revenue Milestone: The EV portfolio (Chetak + Electric 3W) now contributes a staggering 25% of domestic revenues.
KTM AG Turnaround: Following the increase in ownership to 75% in November, a three-pronged turnaround focusing on liquidity, top management, and cost reduction is underway.

Section 3: Profitability & Valuation Suite

Bajaj Auto continues to demonstrate superior capital efficiency and a robust balance sheet.

Profitability Metrics:

Operating Margin (Consolidated): 18.0%
ROE (TTM): ~28.7%
ROCE (TTM): ~37.8%

Valuation (as of Feb 2026):

Current PE: 30.3x vs. Long-term Average of ~26x (Trading at a premium due to EV and BACL growth).
Price to Book (P/B): 7.8x
Debt-to-Equity: 0.57 (Note: Standalone manufacturing is net cash positive; debt resides in the financing arm).

Section 4: Growth Trend Analysis (H1 vs. Q3)

The company has successfully sustained and improved upon the momentum seen in the first half of the year.

Period	Revenue Growth	EBITDA Margin	Profit Growth (PAT)
H1 FY26 (Historical)	14.7%	21.7%	30.2%
Q3 FY26 (Current)	19.0%	20.8%	19.0%

Analysis: While EBITDA margins dipped slightly in Q3 compared to H1 (due to higher EV mix and absorption of cost inflation), revenue growth has accelerated to 19%. Management expects to maintain double-digit growth as Pulsar refreshes take hold.

Conclusion: Wealth-Building Strategy

Bajaj Auto is no longer just an ICE motorcycle player; it is now an EV and Finance powerhouse. The financing arm (BACL) is already delivering an AUM of ₹16,500 Cr with a healthy 21% ROE.

In our '5 Steps Towards Wealth' framework, Step 4: Valuation is critical. While the business is firing on all cylinders, the current premium valuation requires a disciplined entry strategy.

Access the Detailed Fair Value Analysis and target projections at https://docs.google.com/spreadsheets/d/e/2PACX-1vRlgrO-U7xyJb5nptwPRDnIVFK7AZZjyx0iwMMZkl_yf2zgc_soTwc9YRn7UsolOziHwaR-ENZBLKgn/pubhtml?gid=1292394751&single=true

Disclosure: We are SEBI Registered Investment Advisor (INA000020651). This report is for educational purposes and should not be considered a direct buy/sell recommendation. Stock market investments are subject to market risks.

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Piyush Patel

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