Bajaj Auto's margin growth picks up on strong premium motorcycle, 3W sales

India's Bajaj Auto reported its biggest margin expansion in three quarters on Tuesday, also boosting profit, as it sold more expensive motorcycles and margin-boosting three-wheelers. The Pulsar and Triumph motorcycle maker is India's fourth-largest two-wheeler manufacturer and leads sales in the premium 125-400 cc motorcycle segments.

In the quarter ended June 30, Bajaj Auto's sales in the segment - which includes the Pulsar range - grew a market-leading 38%, according to industry data, pushing its total two-wheeler sales volume 7% higher. Sales of three-wheelers, which cost less to make than other vehicles, grew roughly 10% in the first quarter.

This helped its core profit margin grow to 20.2% from 19% last year - its largest margin expansion since the quarter ended September 2023.

PROFIT BUMP

Bajaj Auto reported its fifth-straight quarterly profit growth, with standalone profit after tax rising nearly 20% year-on-year to 19.88 billion rupees ($238 million) as exports recovered.

Analysts had expected 19.84 billion rupees, per LSEG data.

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Exports, which had bottomed out in fiscal 2024 amid currency-related issues in Bajaj Auto's key African markets, climbed nearly 7%. This accounted for around 37% of its total overall sales volume.

The segment's sales volume had dropped 10% for fiscal 2024. The last time Bajaj Auto posted a quarterly profit drop was in the March 2023 quarter, when exports turned sluggish.

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