Bajaj Auto Ltd. and TVS Motor Ltd. financial performance for of fiscal 2027 exceeded street expectations, with net profit rising 42.3% (YoY) to Rs 2,983 crore from Rs 2,096 crore for the former and 51.3% year-on-year to Rs 1,174 crore from Rs 776 crore for the latter.
Growth for the companies was aided by a host of tailwinds for the automobile giants, including rising volumes, robust exports, and lowered expenses.
Volumes, Exports Drive Growth
Volumes for Bajaj Auto grew grew 30% to 14.3 Lakh units, propelled by higher export growth. Exports recorded their best-ever quarter, with both revenue and volumes hitting record highs and shipments crossing the 700,000-unit mark for the first time.
Commercial vehicle exports also grew around 70% despite logistical challenges and geopolitical tensions in the Middle East and North Africa region.
ALSO READ: TVS Motor Q1 Result: Net Profit Up 51% YoY, Revenue Rises 38%; Highest-Ever Quarterly Sales Recorded
Notably, Bajaj Auto continued to gain market share across key international markets, posting another strong performance in Latin America, while Africa rebounded sharply with revenue more than doubling year-on-year, led by a three-fold increase in Nigeria. The company expects upcoming upgrades in the 125-160cc category to further strengthen its market position.
While TVS volumes grew 28% to 16.3 Lakh units. Scooter volumes for TVS went up 36% year-on-year and helped boost market shared. Sales of Electronic Vehicles soared 86% to 129,940 units during the quarter, compared with 70,060 units in the year-ago period. TVS Motor said it crossed the milestone of one million EV customers.
TVS Motor also recorded its highest-ever quarterly sales during the period. Total two- and three-wheeler sales rose 28% year-on-year to 1.63 million units in the June quarter, compared with 1.28 million units in the same period last year.
Margins Improve
Bajaj Auto reported a 110 basis point improvement in margin to 20.9%, while TVS Motor posted a 30 basis point expansion to 12.8%.
The margin improvement was driven by favourable USD/INR realisations, a better product mix and operating leverage. The benefit of low-cost inventory also supported profitability. Management commentary on Q2 FY27 margins will be a key monitor for investors.
Dipping Expenses
Other expenses as against sales went down for both companies, with TVS' other expenses standing at 9.5% of sales compared to 10.54% in the year-ago period. Bajaj Auto's other expenses lowered to 5.6% of sales, as against 6.74%.
Bajaj Auto Vs TVS Q1FY27 Recap
| Metric (Q1 FY27) | Bajaj Auto | TVS Motor |
|---|---|---|
| Net profit | Rs 2,983 crore (up 42.3% YoY) | Rs 1,174 crore (up 51.3% YoY) |
| Revenue | Rs 17,244 crore (up 37% YoY) | Rs 13,896 crore (up 37.8% YoY) |
| Ebitda | Rs 3,595 crore (up 44.9% YoY) | Rs 1,780 crore (up 41.2% YoY) |
| Margin | 20.8% (up 110 bps YoY) | 12.8% (up 30 bps YoY) |
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