On a sequential basis, profit after tax rose 5% from Rs 2,005 crore posted in the preceding September quarter. Revenues, on the other hand, fell 2% quarter-on-quarter.
The revenue growth on a YoY basis was driven by strong exports and a buoyant domestic green energy portfolio.
Operating profit, as measured by EBITDA, was up 6% YoY to Rs 2,581 crore. Margins expanded 10 basis points YoY to 20.2% as favorable USD/INR realization and dynamic P&L management essentially on judicious pricing and cost efficiencies, offset the significant investments being made behind strategic priorities.
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Overall volumes increased 2% YoY to Rs 12.24 lakh units in the reporting quarter as exports did most of the heavy lifting even as domestic market disappointed.
Should you buy, sell, or hold Bajaj Auto’s stock? Here’s what analysts say:
Nuvama
Nuvama maintained a ‘Buy’ rating on Bajaj Auto with a target price of Rs 10,700.
The company’s EBITDA is slightly above estimates, driven by better pricing, scale, PLI incentives, and cost savings. Management has provided a positive volume outlook for the next 3–6 months. Export growth is expected to exceed 20%, while domestic growth is projected at 6–8%.
The two-wheeler segment is expected to achieve a volume CAGR of 7% over FY25–27E. Additionally, revenue and EBITDA CAGR are estimated at 11% and 12%, respectively, over FY25–27E, with an average RoE of around 35%.
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Axis Capital
Axis Capital maintained a ‘Sell’ rating on Bajaj Auto with a revised target price of Rs 7,550, down from Rs 8,000.
The Q3 EBITDA was largely in line with estimates. Exports are recovering, driven by strong year-on-year growth in Latin America and sequential growth in Africa. However, despite new launches, the company lost over 100 basis points of market share in the first nine months of FY25, which is a concern. Due to lower volume assumptions, the firm has cut its FY25–27E EPS estimates by 7%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
