Bajaj Auto Q3 FY25 Results: Driving Growth with Green Energy, Exports, and Premiumization

Introduction

Bajaj Auto Ltd., one of the most prominent names in the two- and three-wheeler industry, recently announced its Q3 FY25 results, which underscore its strength amid a competitive and evolving market. Despite industry challenges, the company demonstrated resilience, achieving a 3% year-on-year (YoY) growth in Profit After Tax (PAT), rising to ?2,109 crore from ?2,042 crore in Q3 FY24. On a quarter-on-quarter (QoQ) basis, PAT climbed 5% from ?2,005 crore.

This robust performance showcases Bajaj Auto’s strategic focus on innovation, sustainability, and premiumization across its product portfolio. Below, we’ll explore the company’s revenue performance, key highlights, and strategies shaping its growth story.

Revenue Performance

For Q3 FY25, Bajaj Auto reported ?12,807 crore in revenue, up by 6% YoY. This progress was fueled by strong export recovery, exceptional performance in its Green Energy portfolio, and record-breaking spares revenue.

Additionally, the festive season boosted domestic retail sales to their highest-ever levels, even as billed volumes were carefully managed to maintain optimal channel inventory. This balance highlights Bajaj Auto’s disciplined approach to scaling and sustaining growth.

Key Highlights

1. Green Energy Portfolio

Bajaj Auto’s Green Energy portfolio emerged as a key driver of domestic growth, contributing approximately 45% of total revenues compared to 30% YoY.

The electric vehicle (EV) sector performed exceptionally well, with around 100K units delivered during the quarter. Notably, the EV business transitioned from losses to marginally positive EBITDA, signaling progress toward profitability. This milestone reflects Bajaj Auto’s commitment to integrating sustainability into its business while ensuring commercial viability.

2. Chetak’s Continuing Momentum

The iconic Chetak electric scooter remained a standout performer, with YoY volumes soaring 2.5x and securing an impressive exit market share of 25% (+1100 basis points). The launch of the "Best Chetak Yet" model, featuring an enhanced battery and modern features, reinforced Bajaj Auto’s dedication to innovation and meeting evolving customer preferences.

3. Commercial Vehicles

Bajaj Auto’s commercial vehicle segment witnessed stellar growth, particularly in electric three-wheelers, with volumes increasing 5x YoY. The company expanded its network to over 850 touchpoints, further cementing its leadership ambitions in this segment.

4. Exports Recovery

Exports continued to display resilience, delivering double-digit revenue growth for the fourth consecutive quarter. LATAM remained a strong performer, while African markets, especially Nigeria, showed signs of recovery with volumes surpassing 100K units. Bajaj Auto’s strategic focus on global markets has been instrumental in offsetting domestic market fluctuations, allowing it to maintain a competitive edge.

5. Premium Motorcycles

The premium motorcycle segment strengthened with remarkable contributions from KTM and Triumph. Triumph achieved its highest-ever retail volumes in a quarter, driven by the popular Speed 400 upgrade. Additionally, KTM expanded its Indian portfolio by introducing 10 internationally acclaimed high-performance bikes, catering to the rising demand for sports motorcycles.

6. Operational Metrics

EBITDA for the quarter came in at ?2,581 crore, reflecting a 6% YoY growth but a slight 3% decline QoQ. Despite these fluctuations, EBITDA margins improved marginally to 20.2%, supported by favorable USD/INR realizations and cost optimization strategies. This steady performance showcases Bajaj Auto’s ability to balance investments in long-term growth areas like EVs and premium motorcycles while maintaining solid operational efficiency.

Challenges and Strategic Decisions

Amid fierce competition in the 125cc+ motorcycle segment, Bajaj Auto achieved its highest-ever festive season retail volumes. However, the company chose not to engage in aggressive price discounting, which may have marginally impacted performance but preserved brand equity and profitability.

Bajaj Auto continues to prioritize premiumization, introducing refreshed product lines and maintaining a strong portfolio mix. This approach ensures long-term sustainability and positions the brand as a leader in both traditional and emerging market segments.

Analysts’ Views

Jefferies India

Jefferies India described Bajaj Auto’s Q3 results as modest yet aligned with expectations. The firm maintained positive growth projections for domestic and export markets, forecasting a 12% CAGR in volumes and a 14% CAGR in earnings per share (EPS) over FY25-27.

Sagar Shetty, StoxBox

Sagar Shetty of StoxBox highlighted the topline growth, supported by increased contributions from three-wheeler volumes and exports. He noted the impressive performance of the premium motorcycle segment, Chetak electric scooters, and the electric three-wheeler portfolio, all of which indicate robust growth potential.

What Does This Mean for Bajaj Auto?

Leading with Innovation

Bajaj Auto’s focus on innovation is evident in its expanding Green Energy portfolio and its forward momentum in electric mobility. More than just a revenue driver, this demonstrates the company’s commitment to sustainable growth in both domestic and global markets.

Strengthening Global Reach

By bolstering exports, particularly in LATAM and Africa, Bajaj Auto shows a strategic understanding of diversifying revenue streams. This approach positions the company as a global leader, capable of weathering challenges across evolving economies.

Capturing Premium Segments

The premium motorcycle segment, led by Triumph and KTM, is a testament to Bajaj Auto’s ability to cater to discerning, high-value customers. This focus on premiumization not only enhances margins but also strengthens the brand’s perception as a leader in both affordability and exclusivity.

Betting on Sustainable Growth

Bajaj Auto is not merely riding the wave of changing industry trends—it’s actively shaping the future of mobility. Its strategic investments in EVs, premium motorcycles, and exports position it well for continued success in an evolving marketplace.

Investors and industry stakeholders alike will be eager to see how Bajaj Auto navigates its priorities in the coming quarters, especially as it scales its EV operations and expands globally.

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Disclaimer

This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.