Bajaj Auto Clocks Strong ₹ 12,000 crores Revenue In Q1 FY25

Bajaj Auto has announced its financial results for the first quarter of fiscal year 2025, reporting double-digit growth in both domestic and export markets. The company's revenue from operations surged 16% year-on-year to ₹11,928 crores. This growth was underpinned by volume expansion in both domestic and export businesses, further bolstered by a favourable product mix.

Another impressive data is the strong profits performance that rose by 24% year-on-year to ₹2,415 crores and profit after tax reached almost ₹2,000 crores. Bajaj Auto also managed to maintain a healthy 20.2% margin with cost optimisation thereby reducing the drag caused by the electric two-wheeler business which has less margins. 

Overall, Bajaj Auto's total sales volume for Q1 FY25 increased by 7% year-on-year with a total of 11,02,056 units produced, with both two-wheelers and commercial vehicles contributing to this growth across domestic and export markets.

In the domestic market, Bajaj Auto maintained its momentum, registering its ninth consecutive quarter of double-digit growth. The electric portfolio, comprising e2W and e3W, now represents 14% of domestic revenues, up from 6% in Q1 FY24. Export revenues also grew double-digits, with Latin America achieving its highest-ever performance and Asia showing improvement, offsetting challenges in Africa. Notably, Bajaj Auto commissioned its first overseas assembly facility in Manaus, Brazil, with an annual capacity of 20,000 units. The new Bajaj Brazil plant could play an important role in further expanding its presence and sales in the Latin American market in the coming months. 

The Pulsar brand continued to be the bread and butter offering for Bajaj Auto. A host of updates and new product introductions meant that the Pulsar range grew at a rate three times faster than the rest of the industry. The latest addition to the Bajaj Pulsar portfolio is also the most powerful Pulsar bike ever in the form of the NS400Z. The new Pulsar NS400Z maintains the VFM quotient associated with Bajaj products as it’s the most affordable 400cc bike on sale in India.

However the most important product to be launched by Bajaj Auto in 2024 is the Freedom 125, which is the world’s first production CNG motorcycle. Bajaj claims that the running cost of the Freedom 125 is half of any equivalent commuter and this will benefit commuter bike owners massively. Currently, the Bajaj CNG bike is only on sale in Maharashtra and Gujarat, while there are plans to expand its presence in many more states across the country. If the Freedom 125 manages to be a hit among commuter bike owners, it has the potential to boost Bajaj sales massively. Chetak, Bajaj's electric scooter brand, also doubled its volumes year-on-year despite a flat industry performance. The company is trying to leverage its wider two-wheeler network for Chetak's expansion and recently launched an affordable variant to boost sales.

The Bajaj Auto and Triumph Motorcycles partnership too has been a runaway success with over 50,000 units of the British bike being delivered. The Triumph Speed 400 and the Scrambler 400X are being manufactured by Bajaj in Chakan and have created revenue of over ₹1,200 crores since its launch. Both the Triumph bikes are exported in over 50 countries and the plan is to increase the dealership network in India from the existing 100 to 150 showrooms in the coming few months. Bajaj Auto maintains a strong balance sheet with surplus cash of ₹16,764 crores, providing ample resources for future growth investments. The company infused capital of about ₹505 crores into its wholly-owned captive financing subsidiary to support its nationwide expansion.