Austria · Delayed Price · Currency is EUR Bajaj Mobility AG Earnings Call Transcripts
Fiscal Year 2026
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Revenue surged 65% year-over-year in H1 2026, with positive EBITDA and EBIT achieved amid major cost reductions and normalized inventory. Motorcycle segment revenue more than doubled in Q2, and management expects further profitability improvements, with formal guidance anticipated by year-end.
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Management addressed recent media allegations about illegal motorcycles, clarifying that enduro models are sold in compliance with regulations and retrofitted for racing post-sale. Legal and financial risks are considered minimal, with strong brand loyalty and no expected impact on sales.
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Revenue surged 70% year-over-year in Q1 2026, driven by a refocus on motorcycles and strong cost controls. Positive EBITDA was achieved, with further margin and cost improvements expected as restructuring continues.
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Austrian Select Conference highlighted a major turnaround, with a new CEO leading a successful restructuring, divestment from non-core businesses, and significant cost and inventory reductions. The company returned to growth, improved cash flow, and will now report quarterly.
Fiscal Year 2025
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2025 saw a major turnaround with a streamlined focus on premium motorcycles, a €1.2B restructuring gain, and Bajaj Auto's majority stake stabilizing operations. Inventory and debt were sharply reduced, with profitability and free cash flow targeted for 2026.
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H1 2025 saw €425 million in revenue and a €1.2 billion restructuring gain, with major divestments and a focus on core motorcycle brands. Inventory and debt were significantly reduced, and the company expects to remain cash positive in 2026 while targeting a return to historic profitability.
Fiscal Year 2024
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First half 2024 saw negative results due to weak demand, high costs, and inventory overhang, especially in the bicycle segment. Aggressive restructuring, cost-cutting, and inventory reduction are underway, with a better second half expected and net debt targeted to fall below EUR 1 billion in 2025.
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Sales in both motorcycle and bicycle segments are forecast to decline 10%-15% amid global market volatility, high interest rates, and supply chain challenges. Cost-cutting, workforce reductions, and a strategic shift to premium brands are underway, with inventory destocking expected to last into 2025.