Bajaj Auto Q2 Results Preview: Net profit likely to rise 21%, revenue growth seen at 23% YoY led by strong volumes

Bajaj Auto, the two-wheeler and three-wheeler manufacturer, will announce its financial results for the second quarter of FY25 on October 16. The auto major is estimated to report decent earnings growth during the July-September quarter led by increase in volumes and richer product mix.

Bajaj Auto is expected to record a revenue growth of 23.41% to ₹13,300 crore in Q2FY25 from ₹10,777 crore in the same quarter last fiscal year, according to a poll of six brokerages by Livemint.

The revenue growth is likely to be led by 16% YoY increase in volumes to 12.21 lakh units and mild increase in Average Selling Prices (ASP) on account of richer product mix. Premium two-wheeler segments expansion, exports growth and price increases taken during the year are expected to support revenue growth.

“Domestic volumes grew 21% YoY, while export volumes rose 7% YoY. In domestic motorcycles, after many quarters, the mix is estimated to have deteriorated given higher sales of Chetak and Freedom 125 and a normalizing momentum for Pulsar 125,” Motilal Oswal said.

The company’s net profit is estimated to rise 21.35% to ₹2,228 crore from ₹1,836 crore, YoY.

Analysts at PL Capital expect mixed improvement in Bajaj Auto’s two-wheeler business and stable growth in the three-wheeler business shall be offset by healthy growth in the Electric Vehicle (EV) business.

At the operational level, earnings before interest, tax, depreciation and amortization (EBITDA) during the quarter ended September 2024 is expected to increase 26.58% to ₹2,700 crore from ₹2,133 crore, YoY, according to the poll.

EBITDA margin is estimated to improve by 52 basis points (bps) to 20.3% from 19.8%, YoY, led by richer product mix, operating leverage and cost control efforts.

Going ahead, a key thing to watch out for in Bajaj Auto Q2 results is the demand outlook in domestic and overseas markets, and CNG / E-mobility initiatives.

Bajaj Auto Share Price

Bajaj Auto stock price has risen 20% in three months and around 70% year-to-date (YTD). The auto stock has given multibagger returns of over 128% in the past one year period.

On Tuesday, Bajaj Auto share price declined more than 3%. The stock fell as much as 3.51% to ₹11,475.00 apiece on the BSE.

At 2:45 PM, Bajaj Auto shares were trading 3.02% lower at ₹11,534.05 apiece on the BSE. 

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