Bajaj Auto’s EV business turns profitable in Q3, green energy now 45% of portfolio

Bajaj Auto shares have corrected a massive 18 percent in the last three months.

Bajaj Auto reported a key milestone in its Q3 results, with its electric vehicle (EV) business becoming profitable for the first time. This includes both electric scooters and three-wheelers, with the company stating that its electric scooter segment is close to achieving positive per-unit EBITDA.

The EV profitability comes at a time when Bajaj Auto is focusing on recalibrating its operations. During the quarter, the company adjusted built-up inventory to better align with market demand. The management, in the post-earnings conference call, also noted that the green energy portfolio now contributes 45 percent to the overall business, reflecting a shift toward sustainable energy solutions.

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Domestic motorcycle sales, however, saw muted growth. The company attributed this to a deliberate decision to avoid deep discounts during the festive season, choosing instead to focus on maintaining margins. On the export front, KTM motorcycle volumes were impacted by weak demand, prompting a cautious approach.

While the EV business and green energy portfolio provided some relief, these results come amidst broader challenges in the auto industry. Bajaj Auto’s strategy appears to balance short-term operational adjustments with longer-term priorities like sustainability and profitability in the EV space.

As for numbers, the company posted an 8 percent year-on-year increase in consolidated net profit for Q3 FY25, reaching Rs 2,196 crore, surpassing analysts’ estimates of Rs 2,155 crore from a Moneycontrol poll. Consolidated revenue from operations grew 8 percent YoY to Rs 13,169 crore, exceeding the expected Rs 13,016 crore.

On a standalone basis, revenue rose 6 percent YoY to Rs 12,807 crore, supported by strong exports, record spares sales, and a robust domestic green energy portfolio. Standalone profit after tax (PAT) climbed 3 percent YoY to Rs 2,109 crore, the company noted in a statement.

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The festive season boosted domestic retail volumes to an all-time high, though billed volumes were recalibrated to adjust for elevated channel inventory from the previous quarter. Exports showed a notable recovery, with volumes surpassing 500,000 units for the first time in nine quarters, reflecting a broad-based improvement across markets.

In the electric vehicle (EV) space, the company’s flagship electric scooter, Chetak, reported impressive growth. Volumes surged 2.5 times YoY, driving its market share up to 25 percent. Meanwhile, motorcycles with engine capacities of 125cc and above-achieved record quarterly retail volumes, fueled by festive season demand.

Shares of the company closed at Rs 8,398, higher by 0.2 percent from the last close on the NSE. Amid the recent correction in the market, Bajaj Auto shares have corrected a massive 18 percent in the last three months.

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