Bajaj Auto (BAJAJ-AUTO) Q4 24/25 earnings summary

Executive summary

• Achieved record revenue of INR 50,010 crore in FY 2025, up 12% year-on-year, with strong growth in both ICE and electric vehicles.

• EBITDA reached INR 10,101 crore, up 14% year-on-year, with a stable 20.2% margin.

• Profit after tax surpassed INR 8,000 crore, with normalized PAT up 12% year-on-year before a one-time deferred tax provision.

• Electric vehicle business, including Chetak and electric three-wheelers, reached leadership positions in India and now comprises ~20% of domestic revenue.

• Board recommended a final dividend of INR 210 per share, totaling nearly INR 5,900 crore, representing a 72% payout ratio.

Financial highlights

• Q4 revenue from operations at INR 12,148 crore, up 6% year-on-year; EBITDA at INR 2,451 crore, with margins at 22%.

• Standalone profit after tax for FY25 was INR 8,151 crore, up 9% year-on-year; normalized PAT (excluding one-time deferred tax) was INR 8,363 crore, up 12%.

• Consolidated profit after tax for FY25 was INR 7,325 crore, impacted by associate losses and impairment.

• Free cash flow robust at INR 6,500 crore; closing surplus cash balance near INR 17,000 crore after capex and investments.

• Dividend payout ratio for FY25 is 72% of profits after tax.

Outlook and guidance

• Exports expected to grow 15%-20% per quarter year-over-year, driven by Latin America and return of KTM exports.

• Continued focus on scaling EV platforms, commercial vehicles, and premium motorcycle brands.

• Domestic motorcycle industry projected to grow 5%-6% in FY 2026, led by 125cc+ segment; company aims for market share gains.

• Commodity and currency volatility expected to impact near-term margins; material cost inflation and OBD2 norms could add up to 1 percentage point to costs.

• Company expects continued growth in electric vehicles, with Chetak maintaining leadership and new product launches planned.