New Delhi, Oct. 27 -- Bajaj Auto's profit surged 62% year-on-year in the July-September quarter as strong export growth, a favourable exchange-rate movement and improving electric-vehicle margins helped India's fourth-largest two-wheeler maker absorb rising commodity and logistics costs. But the company flagged emerging signs of rural distress that could weigh on demand.

The Pune-based automaker on Tuesday reported net profit of Rs.3,436 crore, while revenue rose 60% from a year earlier Rs.25,125 crore. Growth was driven by international demand, while domestic two-wheeler sales remained subdued.

The company's outlook for rural demand was less upbeat. Rakesh Sharma, joint managing director at Bajaj Auto, warned that weak monsoon rains co...