Bajaj Auto Ltd

Rating Details

• Agency: India Ratings and Research Private Limited; rating affirmed for bank loan facilities at IND AAA/Stable/IND A1+.
• Facility amount rated: Rs 1,200 crore.
• Rating action date: 21 August 2026.

Transaction details

• Target: Bajaj Auto Limited, listed on NSE and BSE.
• Acquirer: Life Insurance Corporation of India; PACs: none.
• Acquirer is not in the promoter/promoter group.
• Stock exchanges: NSE and BSE.
• Pre-acquisition holding: 1,37,06,151 shares, 4.987%.
• Acquired: 44,800 shares, 0.016%.
• Post-acquisition holding: 1,37,50,951 shares, 5.003%.
• Mode: Market Purchase.
• Date: 17 August 2026.
• Equity share capital before/after: 2,74,80,38,380 shares (unchanged).

Meeting Details

• Date: 21 September 2026
• Location: Mumbai
• Mode: Physical
• Event organizer: J.P. Morgan India Conference

Participants

• Key company participants: not disclosed in filing

Purpose

• Purpose: analyst/institutional investor interaction at conference

Note

• No recording and presentation details provided in filing

Meeting Details

• Date: 10 September 2026; Location: Mumbai.
• Mode: Physical; Type: group investor meeting at Axis Capital conference.
• Organizer: Axis Capital Consumer & Tech Conference.

Participants

• Key company management attendees not specified in filing.

Purpose

• Purpose: schedule of analyst/institutional investor meeting.

Meeting Details

• Date: 26 August 2026.
• Particulars: Group meeting with 360 ONE Capital.
• Location: Pune.
• Mode: Physical.

Participants

• Key company participants: not disclosed in filing.

Purpose

• Purpose: Analyst/institutional investor interaction.

Meeting Details

• 12 August 2026; time not disclosed; physical investor conference.
• Type/Mode: Group, physical meeting.
• Organizer: Emkay Global Conference: India Full Throttle Ahead.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: Analyst/institutional investor meeting.

Financial Performance

• Q1 volumes 1.4 million; revenue INR 17,244 crores; EBITDA INR 3,596 crores; EBITDA margin 20.9%.
• PAT around INR 3,000 crores; consolidated PAT INR 3,226 crores.
• Standalone revenues INR 17,200 crores; consolidated revenues INR 21,689 crores, up 65% YoY.
• Free cash flow over INR 2,300 crores; cash balance above INR 21,000 crores.
• Consolidated results include Bajaj Mobility AG; full quarter contribution.
• BACL: total income INR 1,100 crores; PAT INR 227 crores; AUM INR 20,000 crores; ROE >25%.
• July dividend payout and buyback completed; total ~INR 10,000 crores in July.
• End-June cash surplus over INR 21,000 crores; cash depletes in July, then rebuilds.

Operating Update by Segments

• Exports revenue ~40% of Bajaj Auto revenue; volume 7,32,000 units.
• African markets grew near 50%; Nigeria led institutional sales.
• LatAm growth; Mexico strongest; Brazil up 50%+.
• Three-wheeler exports hit 100,000 units; share ~65%.
• Domestic two-wheelers driven by EVs and 150cc-plus; ICE 100cc/125cc flat.
• Chetak volumes up 65% YoY; EV penetration 25% of ICE scooters.

Cash, Balance Sheet and Capital Allocation

• Net cash position; surplus cash over INR 21,000 crores at quarter end.
• Dividend and buyback; INR 10,000 crores payout in July; hybrid base dividend plus buyback.
• Sighted end-FY cash around INR 15,000 crores after July outflows; ongoing cash generation.
• BACL ROE >25%; AUM INR 20,000 crores; CAR 19%.

Exports and KTM/Triumph Update

• KTM and Triumph combined domestic volumes ~40,000 motorcycles; 90+ KTM-Triumph stores.
• KTM line-by-line consolidation; normalization to follow in coming quarters.
• KTM and Bajaj R&D collaboration ongoing; India as manufacturing base for KTM expansion.
• Triumph network expansion; nearly 210–215 stores; more additions planned.

Capex and Capacity Expansion

• Capacity expansion to 9 million units per annum from current 7 million.
• Focus areas: EVs, high-end motorcycles, and three-wheelers.
• KTM AG turnaround to normative levels; support from Bajaj.
• R&D collaboration with KTM; increased in-house co-design and manufacturing.

Outlook and Guidance

• Inflation broadening beyond base metals; pricing, value engineering, sourcing, productivity, currency cushion.
• Second-quarter inflation impact likely; precise numbers not provided.
• Rupee depreciation cushions costs; future cushion depends on RBI measures.
• Exports expected above 250,000 per month; LatAm leadership and Africa gains.
• FY27 focus areas reiterated: domestic motorcycles, premium segment, KTM/Triumph, EVs.

Q&A Highlights

• Premium segment demand remains strong; cannibalization from EV on ICE scooters noted.
• Launch plan: 10 variants in 6 weeks; 2 Pulsar models and 2 new 125cc brands by year-end.
• EV capacity: 50,000 units; target 60,000; three-wheeler EV 7012 top-selling.
• Rupee depreciation provides cushion; inflation offset through pricing; costs disciplined.
• Chetak profitability improved; EBITDA positive; portfolio margins remain double-digit.
• KTM and Triumph network expansion; store viability driving growth; ~210–215 stores now.

Key Update

• Audited standalone and consolidated results for year ended 31 Mar 2025 submitted on 29 May 2025.
• Auditors issued an unmodified opinion for the year ended March 31, 2025.
• Q4 FY25 consolidated results carry a modified opinion due to PBAG six-month reporting differences.
• PBAG is 49.9% held via Bajaj Auto International Holdings BV; PMAG results are published semi-annually.
• Consolidated six-month PBAG loss was €308.55 million (₹2,809.36 crore) for six months.
• Auditors cannot determine impact on consolidated PAT, OCI, or EPS for Q4 FY25 due to PBAG data timing.
• There is no discrepancy in the documents submitted on 29 May 2025.
• Overall, annual results are unqualified; Q4 FY25 results carry a modified report.