Rs 150 Dividend Per Share; Second-Highest Dividend Ever Announced by This Large-Cap Auto Stock Along With Buyback

Bajaj Auto Ltd reported a record performance for FY26, with the company registering its highest-ever volumes, revenues, profits and cash generation. The growth was broad-based across internal combustion engine and electric vehicles, two-wheelers and three-wheelers, as well as domestic and export markets.

For the full year, Bajaj Auto’s standalone revenue from operations stood at Rs 58,732 crore, up 17 per cent from Rs 50,010 crore in FY25. EBITDA rose 19 per cent year-on-year to Rs 12,019 crore, while EBITDA margin improved by 30 basis points to 20.5 per cent. Profit after Tax increased 21 per cent to Rs 9,825 crore, compared with Rs 8,151 crore in the previous year.

The company said the performance was supported by record vehicle and spares sales, improved product mix, better currency realisation and operating leverage. These factors helped offset the impact of margin-dilutive electric two-wheeler sales and continued investments aimed at driving competitive growth.

On the volume front, Bajaj Auto crossed the 5 million-unit mark in FY26, with total volumes rising 10 per cent year-on-year to 51,17,667 units, surpassing the peak of 2019. In FY 26, domestic two-wheeler volumes stood at 23,49,040 units, while commercial vehicle volumes in the domestic market increased 8 per cent to 5,18,444 units. Exports also remained strong, with total export volumes rising 21 per cent to 22,50,183 units.

The company’s export business scaled new highs in revenue, supported by strong double-digit volume growth and favourable currency movement. Latin America continued to deliver strong performance, while Africa and Asia also posted double-digit growth. Commercial vehicle exports saw a sharp 49 per cent rise during the year.

Bajaj Auto’s domestic business also reached a new revenue milestone, growing 13 per cent year-on-year. The company said growth was supported by two-wheelers and three-wheelers, aided by GST rationalisation, festive demand and the continued scale-up of its electric vehicle portfolio. The EV business retained Bajaj Auto’s position as India’s largest EV player, with revenue of over Rs 8,000 crore and more than 20 per cent of domestic sales.

The Chetak electric scooter business reported revenue of more than Rs 4,000 crore during the year. After facing supply-side constraints in the first half, the business recovered strongly in the second half, helped by engineering interventions, improved availability and portfolio actions. In Q4 FY26, Chetak delivered its strongest-ever performance, with retail volumes crossing the 1 lakh mark.

The KTM-Triumph portfolio also delivered its best-ever performance, with global revenue of around Rs 5,000 crore, up 40 per cent year-on-year. The company said the business benefited from a stronger portfolio, wider reach and strong response to models under the KTM and Triumph brands.

For Q4 FY26, standalone revenue from operations rose 32 per cent year-on-year to Rs 16,006 crore. EBITDA increased 36 per cent to Rs 3,323 crore, while EBITDA margin stood at 20.8 per cent. Profit after tax came in at Rs 2,746 crore, up 34 per cent year-on-year. The reported PAT included an exceptional gain of around Rs 35 crore from the prepayment of a sales tax deferral loan at discounted value.

On a consolidated basis, Bajaj Auto reported FY26 revenue from operations of Rs 62,905 crore, up 23 per cent from Rs 50,995 crore in FY25. Consolidated profit after tax stood at Rs 10,744 crore, registering a 47 per cent year-on-year increase.

The company also highlighted strong performance from Bajaj Auto Credit Ltd, where assets under management nearly doubled to Rs 18,835 crore as of March 31, 2026. Disbursements for FY26 stood at Rs 14,885 crore across 1.14 million customers. The subsidiary’s total income rose more than three times to Rs 3,248 crore, while PAT surged to Rs 665 crore from Rs 58 crore in FY25.

Along with the results, Bajaj Auto’s board recommended a final Dividend of Rs 150 per share, which is the second-highest dividend almost in two decades and approved a buyback of shares through the tender route. The company stated that the dividend and buyback together add up to around Rs 9,825 crore, resulting in a payout of 100 per cent of the year’s profit after tax. During the year, the company had already returned around Rs 5,900 crore to shareholders through dividends.

Bajaj Auto also continued to generate strong cash flows, with free cash flow accretion exceeding Rs 8,000 crore during FY26, up around 30 per cent year-on-year. The company ended the year with surplus funds of more than Rs 18,000 crore after capex of around Rs 500 crore, strategic investments of more than Rs 2,300 crore in subsidiary companies and shareholder payouts.

Disclaimer: The article is for informational purposes only and not investment advice.