Bajaj Auto Q1 Results: Net profit rises 5.4% to ₹2,096 crore; margins slip to multi-quarter low

Bajaj Auto, one of India’s leading two-wheeler manufacturers, announced its June-quarter results today, posting numbers that were slightly above estimates. It reported a net profit of ₹2,096 crore in Q1, a 5.4% increase compared to ₹1,988 crore in the same quarter last year, surpassing analysts’ estimates of ₹1,969 crore.

The revenue from operations stood at ₹12,584 crore, also exceeding estimates of ₹12,276 crore and marking a 5.5% improvement from ₹11,928 crore reported in the same period last year.

At the operating level, EBITDA stood at ₹2,481 crore, surpassing the estimate of ₹2,362 crore. However, margins contracted by 60 basis points to 19.7% from 20.3% in the June 2024 quarter. While broadly in line with estimates, margins dropped to a multi-quarter low, falling below 20% for the first time in several quarters.

Analysts had earlier noted that margins were expected to be impacted by higher raw material costs, lower US Dollar realisations and a spike in ocean freight rates.

Higher exports and price hikes helped the company deliver strong results in a challenging quarter. Export volumes grew 16% YoY in Q1, led by premium motorcycles, commercial vehicles (CVs), and Chetak scooters. The company exported 4.76 lakh units during the quarter, with 2-wheelers accounting for 88% of total exports.

In the domestic market, 5.29 lakh 2-wheelers were sold, marking a 9% decline compared to the same period last year.

"Underpinned by broad-based double-digit volume led growth across Africa, LatAm and Asia, even as MENA remained muted amidst geopolitical challenges; the revival of exports to KTM post the restructuring process provided a further boost to the quarter's numbers, " the company said in its earnings' report.

Overall, the company sold 11.11 lakh units, including both domestic and export markets, reflecting a marginal 1% YoY growth.

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