Bajaj Auto Q2 net seen up 6% at Rs 785 cr: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the automobile sector. The brokerage house expects Bajaj Auto to report a 6.4 percent growth quarter-on-quarter (up 6 percent year-on-year) in net profit at Rs 785.1 crore.

Revenues are expected to decrease by 3.8 percent Q-o-Q (down 5 percent Y-o-Y) to Rs 4,725.2 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 7.4 percent Q-o-Q (up 6.4 percent Y-o-Y) to Rs 973.4 crore.

Motilal Oswal's Report on Bajaj Auto:

Expect 2QFY14 volumes to decline 12.9 percent Y-o-Y (-6.7 percent Q-o-Q) to 0.92 million units as weak consumer sentiments impacts sales.

EBITDA margins to improve 220bp Y-o-Y (+210bp Q-o-Q) to 20.6 percent led by favorable export realizations (USD/INR hedged at 59 levels v/s INR 55.5 for 1Q and INR 49.5/USD in FY13), partially offset by lower volumes, weaker mix (lower 3W share), price cuts in Nigeria/Sri Lanka effective August 2013 and higher marketing spend.

Expect PAT to rise 6 percent Y-o-Y (+6.4 percent Q-o-Q) to INR 7.85 billion, in line with EBITDA rise.

We lower FY14E/FY15E EPS by 8.2 percent/8.7 percent as we cut our FY14E volume assumptions on continued weakness in macro-economic environment and consequent slower economic recovery, coupled with partial passthru of favorable Fx hedges to revive export demand.

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