Bajaj Auto sets FY27 priorities after record FY26 growth

Bajaj Auto will focus on strengthening its 125cc-plus motorcycle segment, accelerating growth for Chetak, KTM, and Triumph, and increasing exports in FY27. Chairman Niraj Bajaj outlined these plans in the company’s FY26 annual report, noting ongoing challenges from geopolitical tensions, commodity inflation, and supply-chain disruptions.

Key Highlights

• Bajaj Auto to focus on 125cc-plus motorcycles and electric vehicles in FY27.
• FY26 saw record volumes exceeding 5 million units and revenue nearing Rs 63,000 crore.
• KTM and Triumph achieved best-ever performance with portfolio and network expansion.
• Exports rebounded, with monthly volumes surpassing 200,000 units in key overseas markets.

FY27 Strategic Priorities

The company has identified ten priorities for FY27. The first is to boost competitiveness in the domestic 125cc-plus motorcycle market through new products, brand initiatives, and improved market execution. Bajaj Auto will also work to accelerate the momentum of KTM and Triumph, following a strong improvement in their growth trajectory.

The company plans to "turbo charge" Chetak, focusing on product improvements, market leadership, and profitability. Bajaj Auto will maintain its position in commercial vehicles and expand its leadership in electric three-wheelers, while scaling up its recent entry into the e-rickshaw market.

Exports remain a major focus. Bajaj Auto aims to build on the recovery in key overseas markets while managing ongoing disruptions in global logistics. The company manufactures in India for more than 100 countries. To reduce supply-side risks, Bajaj Auto will add capacity, especially for electric vehicles and premium motorcycles, and develop alternative materials and supply sources.

Further investments will go into differentiated products, brand-building, and customer experience. The company also plans to expand Bajaj Auto Credit, its vehicle-financing arm, and Bajaj Auto Technology, its research and development subsidiary. Bajaj Auto will continue to focus on profit-and-loss and performance management to ensure consistent and profitable growth despite emerging challenges.

FY26 Performance Overview

These priorities follow a record performance in FY26. Bajaj Auto posted its highest-ever annual volumes, exceeding 5 million units for the fourth consecutive year of record results. Standalone revenue rose 17 percent to nearly Rs 59,000 crore, driven by strong domestic and export sales across vehicles and spare parts. Consolidated revenue increased 23 percent to nearly Rs 63,000 crore.

Earnings before interest, tax, depreciation, and amortization (EBITDA) crossed Rs 12,000 crore for the first time, with an EBITDA margin of 20.5 percent. Standalone profit after tax reached a record Rs 9,825 crore. Consolidated profit after tax grew 47 percent to Rs 10,744 crore. Free cash flow exceeded Rs 8,000 crore, and the company ended the year with surplus cash of over Rs 18,000 crore.

Bajaj Auto’s performance was broad-based across domestic and export operations, two-wheelers and three-wheelers, and both internal combustion engine and electric vehicles. The domestic business achieved its highest-ever revenue, supported by premium motorcycles, commercial vehicles, and electric mobility. The 125cc-plus motorcycle segment remained a key growth driver, with the refreshed Pulsar portfolio receiving strong market response.

KTM and Triumph delivered their best-ever performance, supported by portfolio expansion, network growth, and brand activities. Chetak volumes also reached a new high. The electric scooter business recovered in the second half after earlier supply disruptions. The commercial vehicle business crossed the 500,000-unit mark for the first time in a full year. The electric three-wheeler business expanded rapidly, and the company entered the e-rickshaw segment with the launch of Riki.

Exports saw a strong comeback, with monthly volumes surpassing 200,000 units after a prolonged gap. Latin America achieved another record year, while Sri Lanka, Nepal, and the Philippines posted strong growth. Nigeria showed signs of recovery. Bajaj Auto’s Brazil operations expanded with increased capacity, new product launches, and dealer network growth.

On KTM, Bajaj Auto worked with Austrian management after acquiring control in November 2025 to strengthen governance, reconstitute the board, and appoint new leadership. The turnaround is ongoing but progressing well. Bajaj Auto remains confident in the KTM brand and its global customer base.

CarBike 360 Says

Bajaj Auto’s record FY26 performance has laid a solid foundation for its FY27 ambitions, with a sharper focus on exports, premiumization, and electric mobility. By aligning its strategy with evolving market demands and global opportunities, the company is positioning itself for sustained growth while reinforcing its competitive edge in both domestic and international markets.