India's Bajaj Auto quarterly profit beats analyst view, unveils biggest buyback (updated)

Bajaj Auto

06/05/2026 14:30

Bajaj aims to bring more bikes to 350cc segment

Beats Q4 profit and revenue views

Unveils largest ever $595.4 million buyback

Rewrites throughout with comments from post-earnings call

By Urvi Dugar

BENGALURU, May 6 (Reuters) - India's Bajaj Auto BAJA.NS said it would modify more of its motorcycle models to fit the 350cc premium segment to capitalize on tax cuts, after it beat quarterly earnings estimates and unveiled its largest-ever share buyback.

Last year's 10 percentage point tax cut on motorcycles with engine capacities of up to 350 cc has helped the automaker cushion margins against higher shipping expenses, steel and aluminium costs amid the Middle East conflict.

Bajaj Auto will bring motorcycles with engines capacity above 350cc into the 350cc segment, finance chief Dinesh Thapar said in a post earnings call.

The Pulsar bike-maker also said it would buy back shares worth 56.33 billion rupees ($595.39 million) at 12,000 rupees per share, a 16.3% premium to its Wednesday close.

A switch to light rare-earth magnets has resolved an issue that last year led the company to warn it could miss its electric-vehicle delivery target due to shortages, Thapar said.

He refrained from offering forecasts for any of the company's segments, citing uncertainty stemming from the U.S.-Iran war.

Bajaj posted the best-ever performance for its KTM-Triumph bikes with a 40% fourth-quarter revenue jump from a year earlier, driven by refreshed KTM Duke and adventure models and Triumph's modern classics lineup. It acquired Austria‑based motorcycle maker KTM last year.

Record sales of Bajaj's more profitable adventure and sports bikes helped expand margins by 30 basis points to 20.5% during the three months ended March 31. Favourable foreign-exchange realisations also supported the bottomline.

The automaker beat analysts' views for both profit and revenue, boosted by strong local and overseas demand for its two- and three-wheelers.

($1 = 94.6100 Indian rupees)

 (Reporting by Urvi Dugar in Bengaluru; Editing by Ronojoy Mazumdar and Joyjeet Das)

 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))