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
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Q4FY25 was a decent quarter, but challenges in the domestic market are still a concern.
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Domestic two-wheeler motorcycle sales are expected to remain under pressure.
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The electric two-wheeler segment and exports are likely to drive growth.
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There’s a note of caution with the controlling stake in Pierer Mobility.
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EPS is projected to grow by 12.3% in FY26E and 8.6% in FY27E.
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The current view remains conservative with a SELL rating, as most of the positive factors are already reflected in the current market price.
The Numbers in Focus
| Metric | Q4FY25 |
|---|---|
Current Market Price (CMP) | ₹8,875 |
Target Price | ₹7,250 |
EBITDA | ₹2,451 crore (+6% YoY,-5% QoQ) |
Net Profit | ₹2,049 crore (4% above estimates) |
EBITDA Margin | 20 bps below expectations |
EV Scooter Sales Volume | 71,300 units (+80% YoY,-8% QoQ) |
Domestic 2W Motorcycle Volumes | 7% YoY decline |
What Worked Well
There were definitely some positives this quarter:
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Better-than-expected revenues: Net revenues were 3% higher than estimates, helped by good average selling prices (ASPs).
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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.
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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:
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EBITDA margin was slightly off: It was 20 basis points below expectations.
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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.
In a Nutshell
Here’s a quick summary:
| Aspect | What It Means |
|---|---|
Domestic Market | Facing challenges, with volumes down 7% YoY |
Export and EV Segments | Showing strong momentum, EV scooter sales up 80% YoY |
EBITDA and Profits | Exceeded expectations, solid net profit growth |
EPS Outlook | 12.3% growth in FY26E, 8.6% in FY27E |
Current View | Conservative, as most positives seem priced in |
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.
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