Bajaj Mobility (BMAG) Q1 2026 earnings summary

Executive summary

• Transitioned to quarterly reporting, marking a successful start to the fiscal year with a focus on restructuring, cost reduction, and a return to positive EBITDA after a challenging prior year.

• Revenue rebounded strongly after restructuring, with a 70.2% year-over-year increase in Q1 2026, driven by the motorcycle segment.

• Motorcycle sales more than doubled, while the exit from the bicycle and car segments simplified operations and focused the business.

• Dealer and market confidence is returning, supported by new model launches and motorsport successes.

• Inventory reduction measures continued, stabilizing the business and improving liquidity.

Financial highlights

• Q1 2026 revenue reached €331.3 million, up 70.2% year-over-year, with motorcycle segment revenue up 151.6%.

• EBITDA turned positive at €5.5 million (1.7% margin), compared to -€55.8 million (-28.7%) a year earlier.

• Net profit improved to -€35.1 million from -€108.1 million year-over-year.

• Overhead costs reduced by 8.5% year-over-year; further cost savings expected from headcount reduction.

• Free cash flow was -€42.9 million, impacted by working capital and the absence of prior year one-off asset sales.

Outlook and guidance

• Management expects further margin improvement and aims to return to pre-crisis profitability levels.

• Additional new models planned for release, including the 1390 SUPER DUKE RR and MY27 KTM range.

• Q1 is typically the weakest quarter; stronger performance expected in Q2–Q4 due to seasonality.

• Cost-saving initiatives (Phoenix program) and operational efficiencies to drive future margin gains.

• No significant increase in debt anticipated; focus on deleveraging and maintaining solid financial structure.