This one caught me off guard. You’d think a 14 percent jump in profit would send Bajaj Auto shares soaring. But instead, they slipped nearly 4 percent in intraday trading. At first glance, it doesn’t add up. Profits up. Revenues up. EVs doing great. Premium bikes performing better than ever. So what gives?

Here’s what I found digging deeper

Bajaj Auto reported ₹2,210 crore in consolidated net profit for Q1 FY26, a solid 14 percent increase year-on-year. Revenue from operations also grew 10 percent, reaching ₹13,133 crore. The company hit record export numbers with strong traction in Africa, Latin America and Asia. And in India, the premium segment with brands like KTM and Triumph saw 20 percent growth. Even the Chetak electric scooter made headlines with retail sales more than doubling.

But the market wasn’t celebrating. Why? It’s all about margins.

The buzzkill was a dip in EBITDA margin

The operating margin came in at 19.7 percent, down 50 basis points from the previous quarter. Not disastrous, but enough to make investors nervous. Management blamed lower dollar realization. Even a better product mix couldn’t fully balance it out.

Experts are divided

Some analysts are staying bullish. Nuvama and Avendus still have a Buy rating, banking on EV growth and export strength. Others are cautious. JM Financial says Hold. Motilal Oswal is Neutral, citing domestic market weakness and slow movement on the CNG bike front.

For me, it feels like the market is trying to decide which version of Bajaj Auto to bet on. The one pushing electric and expanding globally? Or the one still facing pressure at home?

This dip might be short-term noise for long-term players but it’s enough to shake off anyone not ready for a bit of volatility. I’m not jumping ship but I’m definitely keeping both eyes open.