Bajaj Reports 46% Revenue Drop for KTM, Manages to Slash Debt by Half

KTM’s financial troubles in 2025 have been reflected sharply in the latest provisional results of its parent company, Bajaj Mobility (formerly Pierer Mobility), which reported a 46 per cent drop in revenue after halting production for part of the year amid an extended restructuring phase.

Bajaj Mobility posted preliminary revenues of €1.009 billion (₹10,709 crore), down significantly from €1.879 billion (₹20,112 crore) in 2024. However, despite the steep fall in income, the company managed to cut its net debt by more than half, bringing it down to €798 million (₹8,545 crore) as of December 31, 2025. The group also confirmed that operational cash flow turned positive in the second half of the year.

The decline in output and sales was largely attributed to an early-year pause in production as the company navigated court-approved restructuring measures. Total annual sales fell 28 per cent year-on-year to 2,09,704 units and there are many unsold KTM inventory worldwide. 

Bajaj Auto claims that the restructuring has left the group in a significantly stronger financial position. A court-sanctioned reset across KTM and its core subsidiaries helped eliminate substantial debt and enabled the company to return to overall profitability after years of mounting losses. However, the impact of Bajaj Auto’s restructuring solutions will take a few years to reflect. It will also be interesting to see whether or not more KTM's future product manufacturing will be moved to India in the future, as currently bikes up to 400 cc are being built at Bajaj's Chakan facility. 

A key outcome of the restructuring has been aggressive cost control, including significant workforce reductions. Employee strength was cut by nearly one-third over the year, declining from 5,310 to 3,782. The most recent phase of job cuts, announced in early January 2026, resulted in a further 500 positions being eliminated. Also part of “rightsizing” efforts in the past, KTM has sold iconic Italian brand MV Agusta, exited the X-Bow sports car business, and also ended its European distribution agreement with CFMoto. 

The other big problem area for KTM has been the quality of its machines, as many products underwent large recalls over the past few years affecting  the image of the brand. Bajaj will also need to improve the quality of the KTM motorcycles and regain the trust of the dealers and customers, while ensuring future product development is on track.