Bajaj Auto Q2 FY27: record standalone PAT +35% YoY; consol PAT ₹3,436 Cr (KTM-boosted)

Bajaj Auto's standalone Q2 FY27 (quarter ended September 2026) print was a record quarter by its own account: revenue crossed ₹20,000 Cr for the first time (₹20,003 Cr, +34% YoY, +16% QoQ), EBITDA crossed ₹4,000 Cr (₹4,172 Cr, +37% YoY) and PAT crossed ₹3,000 Cr (₹3,354 Cr, +35% YoY, +12% QoQ), with EBITDA margin holding firm at 20.9% (+40bps YoY, flat QoQ). Both figures beat Street: Axis Securities and Choice Broking had pegged standalone PAT at roughly ₹3,076-3,109 Cr (+24-25% YoY) on revenue of about ₹18,762 Cr — the actual print beat profit estimates by ~8-9% and revenue by ~6-7%. On a consolidated basis, PAT attributable to owners was ₹3,436 Cr (+62% YoY, +7% QoQ) on revenue of ₹25,126 Cr (+60% YoY, +16% QoQ), with basic EPS of ₹124.6 (+64% YoY). The large gap between consolidated growth (+60-62% YoY) and standalone growth (+34-35% YoY) is not an organic-performance story — it stems from a change in consolidation scope. Bajaj took controlling interest in Bajaj Auto International Holdings AG (parent of Bajaj Mobility AG/KTM AG) on 18 November 2025; before that date, Q2 FY26's consolidated accounts carried only an equity-method "share of loss of associate" of ₹(634.84) Cr reflecting KTM's distress. From this quarter, KTM/BMAG is fully line-by-line consolidated (with a one-quarter reporting lag), so the YoY consolidated comparison embeds a large scope change rather than like-for-like growth — which is also why Bajaj's own press release is titled "Q2 FY27 Results (Standalone)" and anchors entirely on parent-only numbers. On the standalone (comparable) business, margins actually expanded, not compressed: management states "currency tailwind, operating leverage and cost control made up for the partial recovery of input inflation through pricing," directly countering the "Q2 margin pressure" flagged on the July concall — guidance on this front was beaten, not merely met. The blended consolidated operating margin (roughly 19.5% by segment-profit math, down from 22.0% YoY and 20.9% QoQ) looks weaker only because it now includes KTM/BMAG's structurally different, lower-margin cost base. Growth was led by exports, up 41% YoY to 778,528 units (2W +43%, CV +26%) — a run-rate of roughly 259,500 units/month that already clears the 250K+/month export target management set out on the July concall — while domestic volumes grew a modest 4% YoY (2W +2%, CV +13%), consistent with softer September dealer-level domestic demand even as exports surged. Domestic electric two-wheeler volumes nearly tripled to ~200,000 units from 82,000 a year ago and now make up roughly a third of domestic revenue, and Chetak posted its biggest-ever quarter. The company also completed a ₹5,632.80 Cr buyback of 46.94 lakh shares at ₹12,000/share (payment on 14 July 2026), cutting paid-up equity capital to ₹274.81 Cr from ₹279.26 Cr a year ago and contributing to EPS growth (+64% YoY) running slightly ahead of PAT growth; the balance sheet still carries about ₹15,500 Cr of surplus funds after returning ~₹10,000 Cr to shareholders via dividends and the buyback in H1 FY27, on ~₹4,000 Cr of quarterly free cash flow. No exceptional items were recorded in either the current or year-ago quarter on a standalone or consolidated basis. Into Q3 FY27, the markers to watch are whether the blended consolidated margin improves as KTM/Bajaj Mobility's own 2025 restructuring-driven turnaround feeds through, whether the ~259,500/month export run-rate holds against the 250K+ target, and whether the domestic motorcycle portfolio overhaul (targeted for completion by September 2026) lifts the softer domestic 2W growth (+2% YoY this quarter) in the back half.