Trading in Bajaj Mobility AG shares has turned electric on the Vienna exchange, with the stock surging 16 percent to €34.90 as market participants position ahead of what they expect will be final regulatory clearance for a majority takeover by Indian two-wheeler giant Bajaj Auto Ltd.
The move extends a blistering run that has already delivered gains of roughly 132 percent since the start of the year — a rally built on a dramatic operational turnaround that has seen the Austrian motorcycle group swing from deep losses to solid profitability in the space of just a few quarters.
The Ownership Puzzle Nears Completion
At the heart of Tuesday’s jump lies a transaction that has been in the works for over a year. Bajaj Auto, which currently holds 37.5 percent of the company, intends to lift its stake to approximately 57 percent by converting €800 million in loans into equity. A final nod from regulators would hand the Indian manufacturer operational control of the KTM, Husqvarna and GasGas parent.
That restructuring has been a long time coming. Back in June 2025, Bajaj Auto International Holdings B.V. took sole control of the business, prompting the departure of long-time CEO Stefan Pierer from the board. The corporate identity followed suit on January 13, when the former PIERER Mobility AG formally rebranded as Bajaj Mobility AG — a name change that signalled the strategic reset was complete.
A Turnaround Measured in Units and Margins
The market’s enthusiasm is hardly unfounded. On August 13, the company reported first-half 2026 global sales of 147,572 motorcycles across its three brands — an 81 percent jump year-on-year. India, where Bajaj Auto distributes the bikes, accounted for 58,568 of those units alone.
The revenue picture is equally striking. Preliminary figures released on August 15 show second-quarter sales climbed to €370 million from €231 million in the comparable period a year earlier, a 60 percent increase. That momentum carried the half-year motorcycle segment to roughly €700 million in revenue, nearly double the €373 million posted in the first six months of the prior year.
Profitability tells the more dramatic story. The EBITDA margin for the second quarter came in at around 8.7 percent, a stunning reversal from the minus 55.6 percent recorded in the same quarter last year. For the full first half, the margin stood at a preliminary 5.4 percent — a world away from the negative 43.3 percent of the previous year.
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The recovery was already visible in the first quarter. According to the interim report published on May 13, group revenue rose 70.2 percent to €331.3 million, while EBITDA swung to a positive €5.5 million against a €55.8 million loss in the prior-year period.
Liquidity Secured, Skeptics Remain
Management has also moved to shore up the balance sheet. On February 27, the company announced the completion of a €550 million refinancing package arranged by an international banking consortium including J.P. Morgan SE, HSBC, DBS Bank Limited and MUFG Bank Ltd. Proceeds were used to fully repay a restructuring loan of approximately €473 million, including accrued interest, owed to Bajaj Auto International Holdings B.V.
Outside its Indian home market, the group sold 48,672 units in the second quarter, a 71 percent improvement — evidence, bulls argue, that the growth story is not solely dependent on Bajaj Auto’s domestic distribution muscle.
Yet the rally has its detractors. On Friday, KTM North America announced a recall of more than 20,000 off-road motorcycles in the US and Canada, covering GASGAS and Husqvarna models from model years 2021 to 2024. The U.S. Consumer Product Safety Commission flagged potential defects in the rear brake caliper.
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Valuation concerns are also creeping in. Quantitative analysis firm GuruFocus, in a note dated August 18, branded the stock significantly overvalued, calculating a fair value of just €11.27 against a market price well north of €30.
All eyes now turn to October, when the company is slated to publish its full third-quarter report. Before that, investors will scrutinize the complete first-half financials due on Thursday — the moment of truth for whether the preliminary numbers hold up under final accounting scrutiny.
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