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Shares of Bajaj Auto rose as much as 5.6% to a record high on Thursday after the company reported a better-than-expected quarterly profit as cost cuts and better sales of high margin three-wheelers helped, while analysts signaled a recovery in its exports business.

The maker of the popular "Pulsar" range of motorcycles topped profit estimates and saw margins grow to 19.8% in the quarter, from 17.2% last year.

Analysts said a focus on its high-margin three-wheeler segment - popular in India as "auto rickshaws" used for ferry people in cities and towns across the country - coupled with some cost efficiencies, helped the company grow margins during the quarter.

"(The company's) three-wheeler business has been reviving on return in demand and a rise in compressed natural gas network in the domestic market," Sharekhan by BNP Paribas said in a note.

The profit beat came in spite of a miss on revenue, with total sales declining over 8% from last year.

Exports, which accounted for 40% of total sales at Bajaj Auto, have declined in each of the last seven quarters, hemmed in by macro-economic pressures in African countries - Bajaj's top markets outside India.

Those markets are recovering, analysts said.

The nearly 9% year-on-year decline in quarterly exports, was the company's smallest since the quarter ended March 31, 2022.

Bajaj Auto is also planning to begin exports of the Triumph Speed 400 and newly-launched Scrambler 400 X models by December or January, Bajaj's chief financial officer Dinesh Thapar, said in a post-earnings call. He, however, declined to disclose the markets being considered for these shipments.

"We expect double-digit export growth in fiscal 2025, with exports on track to reach 2022 levels potentially by fiscal 2026," Jay Kale, vice president at Elara Capital said.