Why Despite Double-Digit Growth in Q1 FY26 Profit: Know More
Bajaj Auto shares dipped over 1% despite a 14% rise in Q1 FY26 net profit to ₹2,210 crore and a 10% revenue growth. Domestic sales fell 8%, but exports surged 16%. Flat two-wheeler volumes and weak local demand likely weighed on investor sentiment.
- Republic Business
- 2 min read
Shares of Bajaj Auto came under pressure on Wednesday, slipping over 1 percent intraday, even as the company reported a double-digit rise in its net profit for the April–June quarter. The stock hit a low of Rs 8,120 during the session, compared to Tuesday’s close of Rs 8,230.50 on the National Stock Exchange (NSE). It was last seen trading at Rs 8,173.50, down 0.69 percent.
Healthy financial performance
The dip in stock price came on the day Bajaj Auto announced its financial results for the first quarter of FY2025–26. The company reported a 14 percent year-on-year increase in consolidated net profit, which rose to Rs 2,210.44 crore. Revenue from operations also registered growth, coming in at Rs 13,133.35 crore, up 10 percent from the same period last year.
In terms of volumes, Bajaj Auto sold 11.11 lakh units during the quarter, just marginally higher than the 11.02 lakh units it sold in Q1 last year. Two-wheeler volumes were largely unchanged at 9.49 lakh units, while commercial vehicle sales grew 7 percent to 1.62 lakh units.
Bajaj Auto successfully navigated a period of subdued domestic demand by capitalizing on robust export growth and making calculated pricing changes. Despite challenges affecting profit margins, the company retained its top spot in the two-wheeler market.
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Skidding at home, cruising abroad
Notably, its volumes showed contrasting trends across geographies. Domestic sales fell 8 percent year-on-year to 6.35 lakh units. This was driven by a 9 percent decline in two-wheeler sales and a 2 percent dip in commercial vehicle volumes.
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However, exports posted a strong recovery, rising 16 percent to 4.76 lakh units. Two-wheeler exports climbed 14 percent, while commercial vehicle exports surged 32 percent. The strong export growth is being seen as a sign of improving demand in key overseas markets, especially Africa and Latin America.
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