Bajaj Auto’s Q4FY25: Highlights, Hiccups, and the Road Ahead

Bajaj Auto’s update for Q4FY25 has just landed, and it’s a blend of encouraging numbers, a few setbacks, and some big signals for the months ahead. Let’s unpack the key highlights together.

A Quick Overview

• Q4FY25 was a decent quarter, but challenges in the domestic market are still a concern.

• Domestic two-wheeler motorcycle sales are expected to remain under pressure.

• The electric two-wheeler segment and exports are likely to drive growth.

• There’s a note of caution with the controlling stake in Pierer Mobility.

• EPS is projected to grow by 12.3% in FY26E and 8.6% in FY27E.

• The current view remains conservative with a SELL rating, as most of the positive factors are already reflected in the current market price.

What Worked Well

There were definitely some positives this quarter:

• Better-than-expected revenues: Net revenues were 3% higher than estimates, helped by good average selling prices (ASPs).

• Strong EBITDA and net profit: EBITDA came in at ₹2,451 crore, 2% above expectations, and net profit reached ₹2,049 crore, 4% higher than expected.

• EV scooter boom: EV scooter sales surged 80% compared to last year, touching around 71,300 units.

Areas to Watch

However, not everything went according to plan:

• EBITDA margin was slightly off: It was 20 basis points below expectations.

• Domestic volumes are still under pressure: Domestic two-wheeler motorcycle volumes were down 7% compared to last year.

The Road Ahead

Looking ahead, the electric vehicle and export segments are showing signs of growth. The 80% jump in EV scooter sales is especially encouraging. But it’s important to keep an eye on the domestic market, where challenges remain.

The acquisition of a controlling stake in Pierer Mobility is another area to monitor closely. It’s a strategic move, and how it develops could have a significant impact.

EPS is expected to grow by 12.3% in FY26E and 8.6% in FY27E, giving a bit of a positive outlook. But overall, given the current market price, the view stays conservative.

Wrapping It Up

So, that’s where things stand for Bajaj Auto in Q4FY25. While domestic hurdles are still there, the momentum in exports and EVs is a clear bright spot. If you’re tracking Bajaj Auto, these are the key trends and numbers to keep an eye on.