Bajaj Auto

Q1 FY27 (Apr-Jun 2026): standalone revenue ₹17,244 crore (+37% YoY), EBITDA margin 20.9% (up from 19.7% a year ago - a genuine, modest margin gain, not a base-effect), standalone PAT ₹2,983 crore (+42% YoY). Consolidated PAT was ₹3,226 crore (+45.9% YoY) and consolidated revenue ₹21,689 crore (+65% YoY) - this much larger consolidated growth rate is not comparable to prior years: it's the first full quarter in which KTM's parent (renamed Bajaj Mobility AG) is fully consolidated line-by-line after Bajaj raised its stake to a controlling 74.9% in November 2025, having previously only equity-accounted for a ~49.9% stake. Management itself flagged that 'comparability will naturally normalize over coming quarters.' FY26 (full year) consolidated revenue hit a record ₹58,732 crore with profit up 21%, aided by KTM's turnaround. Domestic two-wheeler volumes actually fell 12% YoY in September 2026 even as exports rose 34% YoY, so recent growth is being carried by exports, not the home market.

Trailing P/E is about 23.7x and P/B is roughly 7.3-8x (sources vary in this narrow range) - expensive by simple multiples. Why: ROE of 29.2% and ROCE of 28.2% are among the highest of any large Indian auto company, so the market is pricing quality and capital efficiency, not growth hype. Whether that's 'cheap' depends on whether Bajaj can keep compounding at these returns while absorbing KTM, which carries real debt and only just turned profitable - that's a separate question from whether the multiple itself looks rich.

The standalone, bike-and-scooter business is growing on both volume and margin: domestic two-wheeler industry registrations were up about 14% YoY, exports hit a record 732,000 units in the quarter, and Chetak electric scooter volumes rose 65% YoY to roughly 130,000 units with the EV business now EBITDA-positive at double-digit margins and about 30% of domestic revenue. That is genuine volume-led growth, not just margin expansion. The much larger consolidated growth number, however, is inflated by the new KTM consolidation and the scaling Bajaj Auto Credit NBFC arm, and should not be read as organic.

The core two-wheeler business converts profit to cash well and carries high margins, consistent with its high ROE. The complication is KTM: its distress in 2024 forced Bajaj Auto to book a ₹915 crore consolidated loss/impairment in FY25 (₹314.55 crore equity-method loss plus ₹600.93 crore impairment) before a rescue and refinancing. On a consolidated basis, Bajaj Auto's debt (about ₹9,260 crore) now roughly matches its cash (about ₹9,200 crore) - a marked change from the company's historically pure net-cash standalone profile, driven by KTM's own borrowings. KTM/Bajaj Mobility AG only posted its first positive operating quarter in Q2 calendar 2026 and still ran a loss for H1 CY2026 overall, so the financial risk here sits mainly in the newly consolidated European subsidiary, not the Indian business itself.

Promoter (Bajaj family, largely via Bajaj Holdings & Investment Ltd) held 54.76% as of 30 June 2026, with pledging at a negligible 0.01% - a clean, well-aligned ownership structure. FIIs held 9.01% and DIIs 13.54%. No well-known marquee outside investor was identified on the shareholder register in available filings - this is a promoter-anchored stock rather than one with a notable institutional champion.