Q1 2027 Bajaj Auto Ltd Earnings Call Transcript
Key Points
- Bajaj Auto Ltd (BOM:532977) delivered its highest quarterly performance with volumes at 1.4 million, revenue of INR17,000 crores, EBITDA of INR3,500 crores, and PAT of INR3,000 crores.
- The company's electric 2-wheeler and 3-wheeler businesses delivered their largest ever quarter, now accounting for 30% of domestic revenues with double-digit EBITDA percentage.
- Exports business unit achieved a new high of 732,000 units, accounting for 40% of Bajaj Auto's revenue, with significant market share gains in key markets like Nigeria and Mexico.
- The domestic 2-wheeler segment, particularly the 150cc-plus segment, showed faster than industry growth, driven by new variants and strategic portfolio makeovers.
- Bajaj Auto Ltd (BOM:532977) plans to expand capacity by almost 25% from the current 7 million units per annum to 9 million units per annum, focusing on EVs, high-end motorcycles, and 3-wheelers.
- The company faced significant supply chain disruptions, including a ransomware attack and LPG supply issues, which impaired availability by 10% to 15%.
- Commodity inflation intensified, with the overall inflationary impact for the quarter reaching about 4.5% of revenue, driven by sharp increases in steel, aluminum, and other materials.
- The 100cc and 125cc segments of motorcycles showed flattish growth, indicating a shift in consumer preference towards higher segments.
- Capacity constraints in both electric and ICE models restricted sales, particularly in the 3-wheeler segment, affecting the ability to fully service demand.
- The operating environment remains volatile and uncertain, with broader cost pressures expected to impact the second quarter, including proprietary components, electronics, and logistics.
Ladies and gentlemen, good evening, and welcome to Q1 FY 2027 results conference call of Bajaj Auto Limited. My name is Nirav, and I will be your coordinator. (Operator Instructions) Please note that this conference is being recorded.
I'll hand the conference over to Mr. Anand Newar, Investor Relations from Bajaj Auto Limited. Thank you, and over to you, Mr. Newar.
Thank you, Nirav. Good evening, everyone, and thank you for joining us for the call today. Welcome to Bajaj Auto's Q1 FY27 earnings call. On today's call, we have with us Mr. Rakesh Sharma, Joint Managing Director; and Mr. Dinesh Thapar, Chief Financial Officer.
We will begin our call with the opening remarks from Rakesh from the business and operational performance for the quarter, followed by Dinesh, who will take us through the financial highlights. We will then open the forum for Q&A. Thank you. Over to you, sir.
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