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 Austriaās struggles, the company remains confident of delivering another record year in FY26.
FY25 Highlights: Financial Performance:
a) Revenue crossed ā¹50,000 Cr for the first time (+12% YoY).
b) EBITDA: ā¹10,101 Cr with steady margins at 20.2%.
c) Standalone PAT: ā¹8,151 Cr (+9% YoY); Consolidated PAT: ā¹7,325 Cr (KTM drag).
d) Free Cash Flow: ā¹6,500 Cr | Cash Reserves: ā¹17,000 Cr.
e) Dividend: ā¹210/share (ā¹5,900 Cr payout, 72% payout ratio).
Exports ā 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: 15ā20% YoY export growth expected each quarter in FY26.
Domestic Motorcycles ā 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 5ā6%; Bajaj targeting share gains with new launches.
Electric 3-Wheelers ā Bajaj Becomes Indiaās #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 ā 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 ā 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 (KTMās parent); turnaround plan in motion with synergies & governance revamp.
e) FY26-end expected to show first results.
Bajaj Auto Credit (BACL) ā Financial Arm Scaling Fast:
a) Turned profitable in FY25 (first full-year PAT).
b) Disbursals: ā¹10,000 Cr | AUM: ā¹9,500 Cr.
c) 40ā50% penetration in vehicle financing.
Operates at armās length with strong risk controls.
Key Financials ā Q4 FY25:
Metric Q4 FY25.
Revenue ā¹12,148 Cr (+6% YoY).
EBITDA ā¹2,451 Cr (20.2% margin).
PAT ā¹2,049 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: āFY26 to be another record year with best-in-class financial performance.”
Bajaj Auto ltd
