Two-wheeler makers post strong growth in profits in the first quarter  Photo/ ANI
Business

Strong Q1 show by TVS Motor and Bajaj Auto over record sales and exports   

Driven by a sharp rise in domestic sales and exports, major two-wheeler makers in the country overcame concerns over higher petrol prices and rising input costs amid the West Asian crisis.

Arshad Khan

NEW DELHI: Two of India’s largest two-wheeler manufacturers -- TVS Motor Company and Bajaj Auto Ltd (BAL) -- posted strong profit growth in the June quarter (Q1 FY2027), driven by a sharp rise in sales and exports, thus overcoming concerns about higher petrol prices and rising input costs amid the West Asian crisis.

TVS reported its highest-ever quarterly profit in Q1FY27, a 51% year-on-year surge to Rs 1,174 crore. The automaker had reported Rs 776 crore during the first quarter of 2025-26 (Q1FY26). The company's standalone revenue from operations rose 38% to Rs 13,896 crore in Q1FY27 as against Rs 10,081 crore in Q1FY26.

“Commodity prices witnessed a sharp upward trend during the quarter due to global market uncertainties resulting in increased input costs. The Company partially mitigated the cost increases through price adjustments and focused cost optimization initiatives, including scale benefits,” said TVS Motor in a statement. 

The company also registered its highest-ever quarterly sales. The overall two and three-wheelers grew by 28% at 16.3 lakh units as against 12.8 lakh units registered in the quarter ended June 2025. TVS’ international business reported a growth of 33% with sales of 470,000 units in Q1FY27 as against 350,000 units in Q1FY26. Two-wheeler electric vehicles grew by a staggering 86% to 129,940 units in Q1FY26. 

Bajaj Auto also reported a strong Q1FY27 earning numbers, with the two-wheeler and three-wheeler maker posting a consolidated net profit of Rs 3,226 crore in Q1FY27, up 46% from the year-ago period. Bajaj Auto's revenue from operations rose 65% year-on-year to Rs 21,688.83 crore during the April-June quarter.  

The largest exporter of two-wheelers from India attributed its robust profit delivery to favourable USD/INR realisation, improved mix, operating leverage and dynamic P&L  management (judicious pricing, cost savings) as these allowed them to offset the significantly adverse impact arising from hyper-inflating input costs. 

The domestic business recorded double-digit growth across its operations, lifting revenue by 26% Y-o-Y.

For Bajaj, exports stood out again and achieved their biggest ever quarter, with record revenues and volumes surpassing the 700,000 mark for the first time. BAL said that it continued competitive gains across key markets, especially in LATAM and Africa, amidst logistical constraints and geopolitical challenges in the Middle East and North Africa (MENA) region 

BAL added that demand for Chetak (e - scooter) continues to outpace capacity, and investments are underway to augment production, which is expected to improve availability, support international expansion, and unlock the next phase of competitive growth.

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