49  Investment in associates

       

The Group, through its wholly owned subsidiary, BAIHBV, previously held 49.9% stake in one associate, i.e., Bajaj Auto International Holdings AG ('BAI HAG' – formerly known as 'Pierer Bajaj AG' or 'PBAG'). On 18 November 18, 2025 ('date of acquisition'), the Company through its wholly owned subsidiary, BAIHBV, acquired sole controlling interest in BAI HAG and consequently, BAIHAG became subsidiary of the Group.

Bajaj Auto International Holdings AG (‘BAIHAG’ – formerly known as ‘Pierer Bajaj AG’ or ‘PBAG’) acts exclusively as the holding company of Pierer Mobility AG. The Pierer Mobility Group is Europe’s leading ‘Powered Two-Wheeler’ (PTW) manufacturer with a focus on highly innovative sports motorcycles and electric mobility. With its KTM, HUSQVARNA Motorcycles, and GASGAS motorcycle brands, it is one of the technology and market leaders in Europe, especially when it comes to premium motorcycles.

The Group has accounted its share of consolidated loss for the period 1 January 2025 to 18 November 2025 as an associate, the profit on remeasurement of previously held equity interest at fair value was recognised in other comprehensive income and the accumulated foreign currency translation gain accumulated in the Foreign Currency Translation Reserve, has been reclassified to the Statement of Profit and Loss

(₹ In Crore)
Particulars		For the year ended 31 March
		2026		2025
Share of profit/(loss) of associate accounted for under equity method		(1,038.07)		(3,389.66)
Gain on remeasurement at fair value (see note 46)		953.10		–
Impairment provisioning*		–		(600.93)
Reclassification of Foreign currency translation gain accumulated over the prior reporting periods in FCT Reserve		645.71		–
Restructuring Gain on write-back of liabilities of BAIH AG Group entities*		–		3,075.11
		560.74		(915.48)

* During the year ended 31 March 2025, the Group has recognized a net loss of ₹ 915.48 crore in the consolidated financial statements related to its investment in erstwhile associate entity, Bajaj Auto International Holdings AG (‘BAI HAG’ – formerly known as ‘Pierer Bajaj AG’ or ‘PBAG’). This comprises share of loss of ₹ 314.55 crore, accounted for under the equity method, and an impairment loss of ₹ 600.93 crore on the carrying value of net investment in the associate.

The share of loss of ₹ 314.55 crore includes a proportionate share of gain of ₹ 3,075.11 crore recognised by KTM AG pertaining to write back of liabilities, consequent to the creditors meeting dated 25 February 2025, which was part of the financial restructuring process of KTM AG under court approved self-administration proceedings.

The impairment loss of ₹ 600.93 crore has been recognized on the Group’s carrying value of net investment in associate forming part of automotive segment based on a computation of value in use pursuant to restructuring of KTM AG which included comprehensive review of the underlying valuation and long-term cash flow projections of operating entity KTM AG. The impairment assessment considered multiple scenarios and incorporated potential downside risks to future performance, including sensitivity to macroeconomic conditions, market demand, and execution of the restructured business plan.

     

a.	Bajaj Auto International Holdings AG ('BAIHAG' – formerly known as 'Pierer Bajaj AG' or 'PBAG') erstwhile associate, is a private entity that is not listed on any public exchange.
	The Group’s interest is in PBAG. (Refer section B.1 of material accounting policies)

Particulars		31 Dec 2024 (₹ In Crore)
Current assets		11,084.64
Non-current assets		8,451.79
Assets held for sale and disposal groups		1,843.43
Current liabilities		20,767.20
Non-current liabilities		1,749.01
Liabilities in connection with assets held for sale and disposal groups		599.72
Equity		(1,736.07)
Revenue		17,011.12
Profit/(loss) before tax		(11,561.83)
Profit/(loss) for the year (continuing operations)		(9,781.15)
Total comprehensive income/(loss) for the year (continuing operations)		(9,796.27)

The associate had no contingent liabilities or capital commitments.

    

b.	The Group has, as on 31 March 2026, the financial assets accounted for using the equity method. The interests in associates that are included using the equity method are considered to be immaterial individually.
	Following associates are accounted for using the equity methods:
	•	KTM Asia Motorcycle Manufacturing Inc., KTM Asia Motorcycle Manufacturing Inc., Philippines, was founded in June 2016 together with partner Ayala Corp. and started CKD (Completely-Knocked-Down) assembly for KTM motorcycles in the Philippines in mid-2017. This share is completely depreciated due to uncertain going concern forecasts.
	•	KISKA GmbH. The Group has classified and valued its 20% share in KISKA GmbH as ‘held for sale’. Kiska GmbH is a design company that provides services in the field of development and design.
	•	LX Media GmbH;
	•	CFMOTO-KTMR2R Motorcycles Co., Ltd., CFMOTO was established in financial year 2018 under the name ‘Zhejiang CFMOTO-KTMR2R Mo-torcycles Co., Ltd.’. The company commenced operations in the financial year 2021.
		In Hangzhou, China, mid-range motorcycles are produced. The Bajaj Group intensified its cooperation with CFMOTO in the financial year 2023 and expanded production.
	The following table illustrates the summarised financial information of the Group’s investment in CFMOTO-KTMR2R Motorcycles Co., Ltd., (in Chinese Yuan, which is its functional currency) acquired as an associate through business combination of BAIHAG effective 18 November 2025: (Refer section B.1 of material accounting policies)

	Particulars		31 Dec 2025 (₹ In Crore)
	Current assets		13.09
	Non-current assets		642.49
	Assets held for sale and disposal groups		–
	Current liabilities		276.03
	Non-current liabilities		8.58
	Liabilities in connection with assets held for sale and disposal groups		–
	Equity		370.97
	Revenue		1,184.61
	Profit before tax		75.12
	Profit for the year (continuing operations)		67.46
	Total comprehensive income for the year (continuing operations)		67.46

        The associate had no contingent liabilities or capital commitments.