Are Bajaj Auto Ltd. latest results good or bad?

Bajaj Auto Ltd. has reported notable financial results for the quarter ending December 2025, showcasing a robust operational performance. The company achieved net sales of ₹16,204.45 crores, reflecting a year-on-year growth of 23.05%, compared to 8.25% in the same quarter last year. This growth trajectory indicates sustained demand across its product portfolio and a strong market position.
The consolidated net profit for the quarter stood at ₹2,749.82 crores, marking a year-on-year increase of 25.24%, up from 8.02% in the previous year. This growth in profitability is complemented by an operating profit margin of 24.25%, which is the highest recorded in the past seven quarters, demonstrating effective cost management and operational efficiency.

However, the financial results also reveal some underlying concerns. The company's interest expenses surged by 160.88% year-on-year to ₹313.63 crores, raising questions about the sustainability of its rising leverage. The long-term debt has escalated significantly, now at ₹6,210.38 crores, which marks a substantial increase from previous levels. This shift in the capital structure may impact future financial flexibility.

In terms of return on equity, Bajaj Auto reported a strong figure of 23.08%, indicating effective capital deployment. Despite these positive operational metrics, the company has experienced a decline in foreign institutional investor (FII) holdings, suggesting a shift in investor sentiment.

Overall, Bajaj Auto's latest results highlight a strong operational performance with record revenues and profits, but the rising debt levels and interest costs warrant careful monitoring. The company has seen an adjustment in its evaluation, reflecting the complexities of its financial landscape amidst these operational achievements.