Bajaj Auto's electric two-wheeler (E-2W) business is edging closer to breakeven, marking a turnaround from the losses posted over a year ago.
During the Q4FY25 earnings call, Bajaj Auto said the path to profitability has become clearer following the recent launch of the Chetak 35 Series electric scooter and the subsequent momentum since December 2024.
“In the last 12-15 months, we had no line of sight to contribution breakeven. Today, we’re probably very close to being EBITDA breakeven and a whisker away from EBITDA-level breakeven for the Chetak 35 series”, the company said, adding that this is contingent to current prices holding steady. The management said that market-level pricing has softened over the past year, but the breakeven goal is within reach if they remain stable, especially with the support of government’s Production Linked Incentive (PLI) benefits.
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The electric business, once a heavy drag on profitability, is now showing signs of strength. Bajaj Auto said it has moved from incurring losses of several hundred crores a year ago to a ‘marginal profit’ position, driven by stronger unit economics of the Chetak electric scooter and a growing contribution from its electric three-wheeler (E-3W) segment.
"The E-3W business is becoming quite material and significant," the company said, indicating that its electric portfolio is now being assessed not just by unit-level metrics but also by its overall contribution to the company's profit pool.
The company posted a 6 percent rise in net profit to Rs 2,049 crore for the March quarter, beating estimates. Strong motorcycle exports and forex gains helped offset weak domestic demand. The firm's revenue rose 6 percent to Rs 12,148 crore in Q4FY25 as compared to Rs 11,485 crore in Q4FY24.
The management said the e-scooter segment is likely to grow between 20 to 25 percent in FY26. Bajaj’s own Chetak electric scooter ended FY25 on a high note, emerging as the top-selling EV in the March quarter, adding to the company’s confidence in the segment’s prospects.
At about 11 am, the shares of Bajaj Auto were trading at Rs 8,661, lower by 2.4 percent to become the top loser on the Nifty, having risen 13 percent in the last three months.
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