Bajaj Auto Q4 preview: Revenue, profit seen rising 25% YoY as robust economy fuels 2-wheeler demand

Bajaj Auto stock has jumped 33 percent since January this year, and has nearly doubled in the last 12 months, beating NSE Nifty 50.

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26 Aug, 2025 12:21

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Two-wheeler major Bajaj Auto is likely to report strong Q4 financial results, driven by a surge in volume sales, coupled with a higher average selling price, as a robust economy and easy financing pushed demand for scooters and motorcycles.

India’s third largest two-wheeler maker is expected to see its fiscal fourth quarter net profit rise to Rs 1,816 crore, up 25 percent from a year ago, according to the median estimate of eight brokerages polled by Moneycontrol. Revenue from operations, too, is seen rising 25 percent on-year to Rs 11,096 crore during the January-March quarter.

Bajaj Auto will declare its quarterly results on April 18.

The increase in revenue would be aided by strong sales volume growth and a higher mix of premium two-wheelers in its sales portfolio, which may have boosted Bajaj Auto’s average selling price (ASP), said analysts. "Revenue growth on-year is to be supported by strong volume performance and better realisations," Nuvama Institutional Equities stated in a preview report.

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The company is estimated to have sold about 10.69 lakh vehicles during January-March 2024 as against 8.6 lakh units in the year-ago period, a growth of over 24 percent.

Further, higher realisation from better product mix is also likely to aid margin expansion for Bajaj Auto. The company’s EBITDA margin (earnings before interest, tax, depreciation and amortisation) is seen expanding 70 basis points on-year to 20 percent in Q4FY24.

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Analysts at Axis Securities suggest that the EBITDA margin is poised on the back of richer product mix, commodity tailwinds, partly offset by weak operating leverage. Global brokerage firm Nomura also said that weak operating leverage and higher EV share may limit the margin improvement for the maker of Triumph bikes.

Bajaj Auto stock has jumped 33 percent since January this year, and has nearly doubled in the last 12 months, beating NSE Nifty 50. The stock is the second-best performer among the Nifty 50 stocks, trailing only Tata Motors, which has delivered over a 100 percent return during the same period.

It has also rallied significantly faster than Hero MotoCorp and Eicher Motors over the same period. On April 16, Bajaj Auto's shares closed at Rs 8,911 apiece, down 0.96 percent from the previous close.

For India’s automobiles sector, both 2-wheelers and 4-wheelers, the volume performance has been robust during the quarter due to better urban and rural demand, a pickup in economy and demand for motorcycles due to better finance availability.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.