Shares of Bajaj Auto slipped 2% following the release of its standalone financial results for Q4 FY25, even as the company posted steady growth across key performance metrics. As of 9:19 AM, the shares were trading 2.39% lower at Rs 8,662.00.
The auto major reported a year-on-year revenue increase of 5.8%, with total revenue rising to ₹12,147 crore compared to ₹11,484 crore in the same quarter last year. Operational performance remained strong, with EBITDA growing by 6% to ₹2,450 crore. The EBITDA margin held firm at 20.2%, indicating stable cost management and efficiency.
Net profit for the quarter stood at ₹2,049 crore, up 6% from ₹1,936 crore in Q4 FY24.
Check out what brokerages are saying below:
CLSA: Outperform Rating Maintained, Target Price ₹10,149
CLSA maintained its “Outperform” rating on Bajaj Auto, assigning a target price of ₹10,149. The brokerage highlighted that the company’s Q4 EBITDA margin of 20.2% met expectations and remained flat on a sequential basis. Revenue growth was driven by a 3% increase in volumes and a 2% improvement in average selling prices, supported by a stronger product mix.
CLSA pointed out Bajaj Auto’s notable market share gains in the electric two-wheeler segment, where it saw a 12-percentage point year-on-year increase to 25% in Q4. The expansion was attributed to the introduction of more affordable EV models.
Looking ahead to FY26, CLSA projects a 7% volume increase in domestic two-wheelers and a 12% rise in exports. These expectations are based on the company’s product pipeline and its positioning in international markets. The brokerage remains positive on the company’s ability to maintain margins while growing in the EV segment.
Bernstein: Outperform Rating Reiterated, Target Price ₹11,000
Bernstein also reiterated an “Outperform” rating, with a target price of ₹11,000. It underscored Bajaj Auto’s ability to maintain margin stability across varied market conditions, noting the company’s resilience despite challenges such as the suspension of KTM exports, lower domestic volumes, and a higher share of EVs.
The brokerage stated that management’s commentary suggested a constructive outlook, particularly for exports, which continue to serve as a growth driver. Bernstein views Bajaj Auto’s ability to defend its profitability under pressure as a reason for potential upside in the stock.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
