Bajaj Auto reported its best-ever financial performance in FY25, driven by a strong rebound in exports, leadership in electric 2- and 3-wheelers, a diversified product strategy in the domestic market, and disciplined cost management. Despite macroeconomic challenges and KTM Austria’s struggles, the company remains confident of delivering another record year in FY26.
FY25 Highlights: Financial Performance:
a) Revenue crossed ₹50,000 Cr for the first time (+12% YoY).
b) EBITDA: ₹10,101 Cr with steady margins at 20.2%.
c) Standalone PAT: ₹8,151 Cr (+9% YoY); Consolidated PAT: ₹7,325 Cr (KTM drag).
d) Free Cash Flow: ₹6,500 Cr | Cash Reserves: ₹17,000 Cr.
e) Dividend: ₹210/share (₹5,900 Cr payout, 72% payout ratio).
Exports – Strong Comeback:
a) Q4 Export Volumes: +20% YoY | Bajaj grew 31% vs. industry 26%.
b) LATAM Focus: Now the largest export region; Brazil plant expanding to 50k capacity by Dec 2025.
c) Premium Mix: 65% of exports are Pulsar, Dominar.
d) KTM Exports: Temporarily suspended; expected to resume next quarter.
e) Guidance: 15–20% YoY export growth expected each quarter in FY26.
Domestic Motorcycles – Realigning for Growth:
a) Industry growth: 6% in FY25 (125cc+ segment up 12%).
b) Bajaj’s 125cc+ market share: 24% (FY23: 21%, FY24: 26%).
Actions Taken:
a) 6 new Pulsar variants launched.
b) Launch of Freedom CNG bike: 60,000 units retailed.
FY26 Outlook: Industry to grow 5–6%; Bajaj targeting share gains with new launches.
Electric 3-Wheelers – Bajaj Becomes India’s #1:
a) Market share jumped from 17% to 33% in FY25.
b) Launched GoGo electric brand; e-rickshaw to debut in July 2025.
c) Focus: Upgrading fragmented e-rickshaw market with quality & reliability.
Electric 2-Wheelers – Chetak Takes the Lead:
a) Market leader with 25% share in Q4 FY25 (up from 13% YoY).
b) Launched 35 series platform: premium design, better range, fast charging.
c) Network: 310 experience centers, 3,000+ sales points.
d) Nearing EBITDA breakeven (helped by PLI).
Key Risk: Rare earth magnet supply from China may disrupt EV production from July.
KTM & Triumph – India Growth + Global Restructuring:
a) KTM + Triumph volumes: ~1 lakh units (+12% YoY).
b) Triumph India volumes doubled; store network doubled.
c) KTM Austria in distress due to e-bike failure & debt.
d) Strategic Move: Bajaj to acquire controlling stake in PBAG (KTM’s parent); turnaround plan in motion with synergies & governance revamp.
e) FY26-end expected to show first results.
Bajaj Auto Credit (BACL) – Financial Arm Scaling Fast:
a) Turned profitable in FY25 (first full-year PAT).
b) Disbursals: ₹10,000 Cr | AUM: ₹9,500 Cr.
c) 40–50% penetration in vehicle financing.
Operates at arm’s length with strong risk controls.
Key Financials – Q4 FY25:
Metric Q4 FY25.
Revenue ₹12,148 Cr (+6% YoY).
EBITDA ₹2,451 Cr (20.2% margin).
PAT ₹2,049 Cr (+6% YoY).
Risks & Headwinds:
KTM losses dragging consolidated PAT.
Rare earth supply delays from China for EVs.
Commodity cost inflation (aluminum, rubber, OBD IIb norms).
Domestic 2W demand volatility in southern markets.
FY26 Strategic Thrusts (7-Focus Areas):
Strengthen 125cc+ position in India.
Outpace market growth in exports.
Scale Chetak, GoGo, Freedom, Brazil business.
Execute KTM turnaround & capture synergies.
Grow spares business.
Elevate KTM/Triumph customer experience.
Balance growth and profitability amidst volatility.
Management Outlook: “FY26 to be another record year with best-in-class financial performance.”
