Bajaj Auto FY25 crosses Rs 50,000 cr, EBITDA Rs 10,101 cr

FY25 sets new financial milestones

Bajaj Auto said FY25 set new benchmarks across key profit and loss metrics. Revenue crossed Rs 50,000 crore for the first time. EBITDA also crossed Rs 10,000 crore for the first time, supported by steady margins of 20.2% across all four quarters. The company said profit after tax (PAT) crossed Rs 8,000 crore for the first time. It also pointed to record sales of vehicles and spares as key drivers in FY25. The management highlighted that the spare parts business delivered its highest-ever quarter and grew 18% in FY25.

Q4 FY25 numbers: revenue and profit beat estimates

For the quarter ended March 31, 2025, Bajaj Auto reported revenue from operations of Rs 12,148 crore, up 5.8% year-on-year, and slightly above the estimate of Rs 12,113.02 crore cited in the report. EBITDA rose 6.3% to Rs 2,451 crore, exceeding the estimate of Rs 2,434.14 crore. Net profit increased 5.8% to Rs 2,049 crore, above the estimate of Rs 2,013.12 crore. The company described the quarter as being impacted by a temporary suspension of exports to its KTM exports business, which it said affected headline growth. Still, it said the continuing part of the business recorded double-digit revenue growth aided by volumes, currency, pricing and product mix.

Margins stay above 20% for the sixth straight quarter

The EBITDA margin was 20.2% in Q4 FY25, a 20 basis point improvement year-on-year and above the 20% threshold for the sixth consecutive quarter. The company attributed margin resilience to favourable currency and cost reduction on the new Chetak platform, which offset operating deleverage and higher discretionary spending. It also cited higher costs on marketing and other investments such as jigs and fixtures as part of stepped-up innovation capex. On a year-on-year basis, it said currency and operating leverage benefits helped absorb the impact of the drop from the profitable KTM exports business and higher discretionary costs. Management also cautioned that commodity and currency conditions remain volatile.

FY25 profitability: EBITDA at Rs 10,101 crore, PAT above Rs 8,000 crore

For the full year, the company reported EBITDA of Rs 10,101 crore, crossing the Rs 10,000 crore mark for the first time. It reiterated that EBITDA margins held steady at 20.2% throughout the year, and said margins closed 40 basis points higher on a full-year year-on-year basis. PAT for FY25 was reported at a new record high of over Rs 8,000 crore, with 9% year-on-year growth, after absorbing a one-time exception related to a deferred tax provision. Separately, the company said FY25 revenue was up 12% year-on-year, led by record sales of both vehicles and spares. It also reported volumes rose 7% in FY25, with a stronger first half domestically followed by a softer second half that was offset by a rebound in exports.

Segment and market share signals: pressure in motorcycles, traction in EVs

Bajaj Auto said its domestic motorcycle performance was relatively subdued during the period. In the 125cc-plus segment, it reported an estimated market share of 24% for FY25 based on Vahan registrations. It also provided a comparison of the same metric at 21% in FY23 and 26% in FY24, indicating some erosion versus the prior year. The company said countermeasures to reverse the share loss were put in play from April onwards. On electric vehicles, it flagged a revenue-accretive electric portfolio contributing to mix. It also highlighted that Chetak achieved a 25% market share in electric two-wheelers in Q4 FY25.

Exports and commercial vehicles: mixed operational backdrop

On exports, Bajaj Auto highlighted a 20% increase in export volumes in Q4, and said it outpaced industry growth in key markets. However, the broader commentary in the report noted concerns around a dip in domestic motorcycle market share and a decline in volume share in India’s two-wheeler exports. In commercial vehicles, the company reported a 75% market share in the internal combustion engine (ICE) segment. It also said its e-auto market share doubled to 33% in FY25 from 17%. It noted that electric three-wheelers continued to support double-digit growth in commercial vehicles revenue, and referenced the launch of Bajaj ‘GoGo’.

Cash, dividend and free cash flow

Bajaj Auto ended FY25 with a cash balance of nearly Rs 17,000 crore, as stated in the earnings call highlights included in the provided text. The company declared a final dividend of Rs 210 per equity share for FY25, totaling nearly Rs 5,900 crore. It also reported free cash flow of Rs 6,500 crore for the year. These disclosures provide a snapshot of liquidity and shareholder payout decisions alongside operating performance.

Jefferies view: earnings beat, but valuation keeps rating at hold

Jefferies described the Q4 performance as decent amid market challenges, while noting that EBITDA and PAT grew 6% year-on-year and beat its estimates by 4-5%. It said the beat was driven by better average selling prices. At the same time, it flagged concerns on domestic motorcycle market share and India two-wheeler exports volume share. The brokerage said it remained optimistic about Bajaj Auto’s growth prospects in the electric vehicle segment. Jefferies projected an 11% volume CAGR and a 13% EPS CAGR from FY25 to FY28. It maintained a ‘hold’ rating, citing a high valuation at 26 times projected FY26 earnings per share, and set a revised price target of Rs 8,000 per share.

Currency sensitivity: management flags near-term headwinds

Management said the commodity and currency environment remains volatile. It noted that currency, which had been a tailwind so far, appears to be an emerging headwind in the current quarter as dollar realisations have started to soften. The company quantified its quarterly dollar-linked sales at approximately USD 500 million. It said lower USD-INR realisation is expected to weigh on margins in the near term. This disclosure links near-term profitability to currency movement, particularly given the company’s export and dollar-linked sales exposure.

Key numbers at a glance

Conclusion

Bajaj Auto’s FY25 performance combined record annual revenue, EBITDA and PAT with steady 20.2% margins across quarters. In Q4 FY25, revenue, EBITDA and profit grew in the mid-single digits and exceeded the cited analyst estimates, even as KTM export suspension affected headline growth. Operational commentary pointed to pressure in domestic motorcycle share, offset by improved mix and traction in EVs including Chetak’s Q4 market share. Jefferies kept a hold rating despite forecasting volume and EPS growth through FY28, mainly due to valuation. The company’s near-term focus will also be shaped by currency movements, given its stated quarterly dollar-linked sales exposure of about USD 500 million.