Bajaj Auto Q2 FY25 Earnings: Profit Sees 9% Rise, Revenue Increases 22% to ₹13,127 Crore

Bajaj Auto has reported its financial results for the second quarter of the fiscal year 2025, showcasing a steady performance with a 9% growth in net profit. The company’s profit for Q2 FY25 stood at ₹2,005 crore, reflecting a solid increase over the same period last year. Although the profit missed some market expectations, the overall revenue for the company saw a notable rise. Bajaj Auto's revenue climbed 22%, reaching ₹13,127 crore for the quarter, up from ₹10,777 crore in the previous year. This revenue boost was attributed to a combination of increased volumes and a diversified product mix, which helped strengthen its market position.

The performance of Bajaj Auto's electric and CNG vehicle segments continues to impress, as these categories now contribute around 40% of its total domestic revenue. The company's extensive portfolio of both two-wheeler (2W) and three-wheeler (3W) vehicles is a significant driver of this growth. Bajaj Auto’s export market also performed well, achieving double-digit revenue growth, further supporting its strong quarterly results.

Bajaj Auto's balance sheet remains robust, with the company holding a surplus cash balance of ₹16,392 crore. This financial strength has allowed the company to make strategic investments aimed at fostering future growth. For example, ₹1,200 crore was infused into Bajaj Auto Credit Ltd. and other initiatives related to electric vehicle (EV) infrastructure. Additionally, the company distributed ₹2,233 crore as dividends during the first half of FY25, highlighting its commitment to shareholder returns.

One of the key highlights of Bajaj Auto’s Q2 performance is the increasing traction in its Pulsar range of motorcycles, which saw its highest-ever quarterly sales, exceeding 1 lakh units. The company's ability to capture market share in both traditional and emerging vehicle segments is a testament to its strong brand and strategic initiatives.

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The company’s domestic sales momentum was particularly notable, with strong double-digit growth across both motorcycles and commercial vehicles. This success was driven by the rising demand for electric scooters, which nearly tripled in sales during the quarter. Bajaj Auto’s ability to cater to both conventional and alternative vehicle markets has positioned it well for continued growth in the coming quarters.

Despite the positive financial performance, Bajaj Auto’s net profit for Q2 FY25 fell short of analyst estimates. Market experts had projected a 21% rise in net profit, forecasting it to reach ₹2,227 crore, alongside a 23% growth in revenue to ₹13,266 crore. However, while the actual results were slightly below these expectations, Bajaj Auto remains a strong player in the automotive industry with significant opportunities for growth.

Shares of Bajaj Auto responded positively to the financial results, with the stock closing 0.88% higher on the Bombay Stock Exchange (BSE), reaching ₹11,622.50 per share. The company continues to benefit from a strong domestic market, bolstered by the increasing popularity of electric and CNG vehicles in India. Looking ahead, Bajaj Auto is expected to maintain its growth trajectory, particularly as the demand for sustainable mobility solutions continues to rise.

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As Bajaj Auto advances into the next quarter, the focus remains on leveraging its diversified product portfolio to capture market opportunities across various segments. With solid financials, strategic investments, and a growing presence in both traditional and emerging markets, the company is well-positioned for sustained success in the years to come.