In his FY2026 letter to shareholders, Chairman Niraj Bajaj lays out a vision for a less cyclical, more diversified and globally integrated Bajaj Auto. Rather than focusing solely on another year of record financial performance, the letter argues that expanding electric mobility, premium motorcycles, exports, vehicle financing and technology will reduce the company’s dependence on any single product or market, while powering its next phase of growth.

The confidence to pursue this strategy stems from four consecutive years of record performance. Bajaj Auto closed FY2026 with standalone revenue of ₹58,732 crore and consolidated revenue of nearly ₹63,000 crore, while maintaining surplus cash of ₹18,137 crore despite strategic investments, capital expenditure and shareholder payouts. This financial strength allows the company to invest simultaneously across multiple businesses rather than relying on a single growth engine.

Building multiple growth engines

The dominant theme running through the Chairman’s Letter is diversification. Instead of relying primarily on domestic motorcycles, Niraj Bajaj’s strategy distributes future growth across electric mobility, premium motorcycles, commercial vehicles, exports and financial services.

Electric mobility sits at the centre of this vision. The chairman calls for “turbocharging” the Chetak business, improving profitability, strengthening leadership in electric three-wheelers and scaling the Riki e-rickshaw brand. Together, these initiatives aim to create a broad-based electric mobility franchise rather than a narrow, single-product EV strategy.

A similar approach is evident in financial services. Bajaj Auto Credit doubled its assets under management to ₹18,835 crore in FY2026 while delivering a 23 per cent return on equity. The Chairman’s Letter positions the financing arm as a strategic enabler—one that supports vehicle sales and deepens customer relationships—rather than merely an additional earnings stream.

Expanding beyond India

Internationalisation forms the second pillar of Niraj Bajaj’s roadmap.

Exports crossed 2.25 million units during FY2026, with Latin America recording its third consecutive record year and Brazil continuing to scale up production. The Chairman’s Letter reiterates Bajaj Auto’s ambition to be a company that “Makes in India for 100-plus countries,” reflecting a deliberate effort to diversify growth beyond the domestic market.

The KTM acquisition aligns with this broader strategy. While acknowledging that the turnaround is still “well underway,” Niraj Bajaj frames the Austrian motorcycle maker as a long-term strategic investment that strengthens Bajaj Auto’s global premium motorcycle portfolio and international footprint, rather than simply serving as a financial rescue.

Technology as a strategic capability

Technology is the thread that ties together the chairman’s priorities.

The rare-earth magnet disruption during FY2026 reinforced the importance of engineering capability and supply-chain resilience. Bajaj Auto Technology redesigned electric motors around alternate materials and sourcing arrangements to restore production. The Chairman’s Letter also highlights capacity expansion, product innovation and Project Velocity as key initiatives aimed at enhancing execution and organisational agility.

This focus signals that management increasingly views technology and execution, not just manufacturing scale, as durable competitive advantages.

The challenge he acknowledges

The Chairman’s Letter is equally candid about the company’s vulnerabilities.

Domestic motorcycle market share declined from 16.6 per cent to 15.6 per cent during FY2026 as competition intensified in the entry and mid-commuter segments. Significantly, strengthening competitiveness in the 125cc-plus motorcycle segment is the first priority in Niraj Bajaj’s FY2027 agenda, signalling that management sees premiumisation rather than a return to the mass commuter market as the path to regaining momentum.

The letter also acknowledges a volatile operating environment shaped by geopolitical tensions, supply-chain disruptions, commodity inflation and changing global trade dynamics. However, rather than advocating caution alone, Niraj Bajaj makes a case for resilience through diversification—across products, geographies, technologies and businesses.

Published on June 28, 2026