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Time of India
4 days ago
- Automotive
- Time of India
Bajaj Auto shares slip 4% after Q1 results. Should you buy, sell or hold?
Bajaj Auto shares slipped nearly 4% to Rs 7,879 in Thursday's intraday trade on the BSE, even after the automaker reported its Q1 results for FY26. The company posted a consolidated profit after tax (PAT) of Rs 2,210 crore, up from Rs 1,942 crore in Q1FY25 — a 14% year-on-year (YoY) increase. Revenue from operations rose 10% YoY to Rs 13,133 crore, compared to Rs 11,932 crore in the same quarter last year. The growth was driven by strong double-digit gains in exports, premium motorcycles, commercial vehicles, and the Chetak EV. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program EBITDA came in at approximately Rs 2,500 crore, with an EBITDA margin of 19.7%, down 50 basis points quarter-on-quarter, primarily due to lower dollar realisations. However, the decline was largely offset by an improved product mix and operating leverage, helping mitigate the impact of commodity inflation. The company said it maintained a healthy balance sheet and continued generating strong free cash flows, adding around Rs 1,200 crore during the quarter. Export revenue hit a record high, supported by broad-based, volume-led double-digit growth in Africa, Latin America, and Asia. The MENA region, however, remained subdued amid ongoing geopolitical tensions. Live Events Should you buy, sell, or hold Bajaj Auto's stock? Here's what brokerages say: Nuvama Nuvama has maintained a 'Buy' rating on Bajaj Auto, though it has revised the target price to Rs 9,400 from Rs 10,700 earlier. Nuvama retained a positive outlook following the Q1 EBITDA beat. It estimates a 7% volume CAGR over FY25–28E, driven by 3% domestic and 13% export growth. Export momentum is likely to continue, especially in Latin America and Asia. The brokerage projects 10% CAGR in revenue and EBITDA, with RoE at around 28%. The target price is based on 25x Sep-27E core earnings. Avendus Avendus has maintained a 'Buy' rating on Bajaj Auto, while trimming the target price to Rs 9,350 from Rs 9,700. Avendus forecasts a ~5% domestic volume CAGR and ~12% export volume CAGR for FY25–27E. Margins are expected to reach ~20% by FY27E, with EV portfolio expansion driving medium-term growth. The stock is valued at 25.5x FY27E EPS. JM Financial JM Financial maintained a 'Hold' rating on Bajaj Auto, with target price of Rs 8,700. JM Financial expects lower domestic volumes to be offset by higher exports and improved realisations. Despite trimming EBITDA margin estimates by 10bps for FY26E and FY27E, the brokerage maintains its Hold rating, with a Mar'27 TP of Rs 8,700, based on 22x FY27E EPS. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Mint
4 days ago
- Automotive
- Mint
Bajaj Auto turns to light magnets as EV output slumps 50% in July
New Delhi: Bajaj Auto Ltd is using light rare earth magnets as an alternative to get production of electric 2- and 3-wheelers back on track, as manufacturing suffered in June and July due to a shortage of heavy rare earth magnets fuelled by China's curbs on exports. The management said on Wednesday that Bajaj's production of EV 2-wheelers will be 60% of the earlier planned output for the months of August and September, while 3-wheelers will see 75% of the planned output in the same period. 'Our production impairment started in June due to which our sales were also hit in Q1. Production was hit up to 50% in July,' Rakesh Sharma, executive director at Bajaj Auto Ltd, said at a media interaction after the release of April-June quarter results on Wednesday. As a result of the crisis, the company said it has delayed several launches of electric 2-wheelers which were planned in the July to September period. Sharma added that the Pune-based company has started moving towards light rare earth magnets from heavy rare earth magnets, which has helped in getting production back on track with situation improving month on month. Rare earth magnets are classified into light and heavy categories. While heavy rare earths have been restricted by China, light rare earth magnets continue to be exported. The heavier the magnet, the better the performance of the motor running the vehicle. Engineering teams of automakers are working on matching the performance using light rare earth magnets as companies have no visibility on resumption of heavy rare earth imports. 'We have no information from the government or suppliers when the flow of heavy rare earth magnets will resume,' Sharma said. After the Bengaluru-based Ather Energy Ltd, Bajaj becomes the second 2-wheeler maker to move towards light rare earth magnets. Earlier, company's managing director Rajiv Bajaj had said that August could be a zero-production month for its flagship Chetak EV 2-wheeler due to a shortage of rare earth magnets. On Monday, Ather's management told Mint that its dispatches to dealers will suffer an impact worth seven days of its volumes due to constraints on production in the second quarter. The commentary on production hits comes during the period in which festive season is expected to boost sales of vehicles as consumers loosen their purse strings. The country's third-largest 2-wheeler maker, TVS Motor Company, said last week that it is just able to manage 'day-to-day production' as it is currently exploring alternatives to limit the impact of rare earth magnet shortage. Despite the hiccups in the past few months, Bajaj Auto managed to post a 14% year-on-year rise in net profit to ₹ 2,210 crore in the June quarter, while revenue increased 11% to ₹ 13,642 crore. The rise in profits came on the back of expansion in consolidated operating margin to 21% from 20% last year due to a 14% growth in exports and rising average selling price of vehicles. The double-digit growth in exports to 419,447 units in the first quarter helped the company offset a 9% decline in domestic sales to 529,344 units. The average selling price of vehicles is higher compared to the domestic market. The management indicated that sales during the first quarter were hit due to the rare earth magnet crisis. 'The outlook on exports remains positive with expectation of 14-15% growth during the year,' Sharma told reporters. Moreover, Bajaj Auto's rival and the country's largest 2-wheeler manufacturer Hero MotoCorp also announced its results on Wednesday. Hero saw its net profit surge by 65% to ₹ 1,706 crore while its revenue slipped 0.3% to ₹ 10,037 crore during the first three months of the current financial year. The surge in profits came on the back of listing of its associate company Ather Energy Ltd, which resulted in a ₹ 722-crore gain due to dilution of stake in the company. 'Our profitability and margins remained resilient, supported by strong demand for our entry & deluxe motorcycles and 125cc scooter segments. We are witnessing good traction in our electric mobility business (VIDA), and global operations also remained ahead of industry, reflecting the strength of our brand in international markets,' Vivek Anand, chief financial officer, Hero MotoCorp, said in an earnings release. While TVS, Bajaj Auto, Ola Electric and Ather have provided updates about the rare earth magnet crisis, Hero has so far refrained from addressing the situation publicly. The discussions on the company's situation are expected to take centre stage during a call with investors on 7 August. Bajaj Auto shares closed 0.6% lower at ₹ 8,177 apiece on the BSE on Wednesday, while those of Hero MotoCorp slipped 1.5% to ₹ 4,474.50 each.
Economic Times
4 days ago
- Automotive
- Economic Times
Bajaj Auto Q1 Results: Cons profit jumps 14% YoY to Rs 2,210 crore; revenue rises 10%
Automaker Bajaj Auto on Wednesday reported its Q1 results for the financial year 2026, posting a consolidated profit after tax (PAT) of Rs 2,210 crore, up from Rs 1,942 crore in Q1FY25, marking a 14% year-on-year (YoY) increase. ADVERTISEMENT The company also reported a 10% YoY rise in revenue from operations, which stood at Rs 13,133 crore, compared to Rs 11,932 crore in the same period last year. The surge in revenue was driven by strong double-digit growth in exports, premium motorcycles, commercial vehicles, and the Chetak EV. The company reported a strong quarterly profit performance, with EBITDA at approximately Rs 2,500 crore. The EBITDA margin stood at 19.7%, down 50 basis points quarter-on-quarter, primarily due to lower dollar realisations during the the impact was largely offset by an improved product mix and operating leverage, which helped cushion the effects of commodity Auto stated that it maintained a healthy balance sheet and continued its strong track record of free cash flow generation, adding approximately Rs 1,200 crore during the quarter. ADVERTISEMENT Surplus funds stood at Rs 16,726 crore, even after a capital infusion of Rs 300 crore into Bajaj Auto Credit to support the expansion of its loan book, and Rs 1,525 crore into Bajaj Auto International Holdings BV, Netherlands, to partially fund the KTM Austria transaction. (You can now subscribe to our ETMarkets WhatsApp channel)
News18
02-06-2025
- Automotive
- News18
This Brand Dominated Two-Wheeler EV Market In May With 107% Growth In Sales
Last Updated: TVS first clinched the top spot in April, surpassing industry giants like Bajaj Auto and Ola Electric. That month, it sold 19,940 units and secured 22% of the market. India's electric two-wheeler (E2W) landscape underwent a dramatic reshuffling in May, with TVS Motor tightening its grip at the top of the leaderboard. The Chennai-based automaker not only held on to its pole position for a second consecutive month but also posted an impressive 107% year-on-year (YoY) growth, selling 24,562 electric scooters and capturing a commanding 24% market share. This surge came as the overall E2W segment recorded a 30% YoY increase, reaching total sales of 1,00,270 units in May. TVS's rise has been driven by strategic product diversification and aggressive network expansion. The company recently introduced new variants of its flagship iQube scooter, offering battery options ranging from 2.2 kWh to 5.1 kWh. Moreover, its dealership network has swelled to 950 touchpoints, up from fewer than 750 a year ago. TVS first clinched the top spot in April, surpassing industry giants like Bajaj Auto and Ola Electric. That month, it sold 19,940 units and secured 22% of the market. Its continued dominance in May underscores a broader shift in the electric mobility sector, where incumbents are increasingly displacing once-dominant disruptors. Bajaj Auto, maker of the Chetak EV, surged into second place in May, registering a 135% YoY growth. The Pune-based company sold 21,770 units and matched TVS with a 22% market share, overtaking Ola Electric, which continues to face a steep decline. Once the undisputed leader in India's E2W space, Ola saw its market share plummet to 18% from a towering 48% in May 2024. It sold 18,499 units in May, down 51% YoY. The decline has triggered concerns among analysts, who now question Ola's near-term growth trajectory. Kotak Institutional Equities, for instance, revised Ola's FY26–27 volume estimates downward to 32–34%, citing tepid industry momentum and delays in the company's much-anticipated electric motorcycle launches. Ola, along with Ather Energy, managed to sell 65,000 units combined in Q1 FY26, with 44,502 units moved in April and May. Meanwhile, Ather Energy, fresh off its IPO, emerged as another standout performer. The Bengaluru-based firm posted a 109% YoY growth, selling 12,841 units in May. Much of its success is attributed to the Ather Rizta, a family-oriented scooter that has resonated well beyond Ather's traditional southern markets. The company now holds a 13% market share, up from just 8% last year. Hero MotoCorp also reported a significant rebound, with sales soaring 191% YoY to 7,164 units in May. Its market share has doubled to 7%, marking a notable comeback in a highly competitive sector. Industry watchers say the latest shake-up in rankings signals a deeper maturation of India's EV market. While early entrants like Ola sparked the initial wave of adoption, legacy automakers with established infrastructure and diversified portfolios are now leveraging their scale to assert dominance. Looking ahead, TVS Motor appears poised to consolidate its lead. CEO KN Radhakrishnan confirmed that new electric vehicle products are in the final stages of development and slated for release in the coming quarters, further hinting that the southern powerhouse may only be getting started.
Business Standard
30-05-2025
- Automotive
- Business Standard
Bajaj Auto Q4 PAT rises 6% YoY
Bajaj Auto's standalone net profit rose 6% to Rs 2,049 crore, while revenue from operations increased 6% to Rs 12,148 crore in Q4 March 2025 over Q4 March 2024. The top-line growth was driven by strong double-digit gains in premium motorcycles, electric scooters, and commercial vehicles. Exports also posted healthy volume-led growth. However, the overall revenue fell short of double-digit expansion due to a temporary suspension of KTM exports. The companys premium segment under KTM and Triumph continues to gain domestic traction. Triumph sales doubled, reaching a new high of approximately 12,000 units. Bajaj is now focusing on Tier 2 and Tier 3 cities with targeted activations to widen reach and tap into new demand pockets. Profit before tax (PBT) stood at Rs 2,703 crore in Q4 FY25, up 6% year-on-year, but down 3% quarter-on-quarter. EBITDA came in at Rs 2,451 crore, up 6% YoY, but down 5% sequentially. EBITDA margin held steady at 20.2%, unchanged from Q3 FY25 and slightly higher than 20.1% in Q4 FY24. This marked the sixth consecutive quarter of EBITDA margins above 20%. Margin strength was aided by better gross margins, thanks to favorable forex movements and cost reductions on the new Chetak EV platform, which offset operating deleverage and increased discretionary spending on branding and manufacturing tools. On a sequential basis, net profit fell 3% and net sales declined 5% compared to Q3 FY25. For the full fiscal year FY25, Bajaj Auto posted a 12% increase in revenue to Rs 51,431 crore, while net profit rose 9% to Rs 8,151 crore. EBITDA rose 14% to Rs 10,101 crore, and PBT grew 13% to Rs 11,052 crore. EBITDA margin for the year improved to 20.2%, up from 19.7% in FY24. The company's standalone net cash from operating activities stood at Rs 7266.73 crore in FY25, as against Rs 7478.27 crore in FY24. Bajaj Autos domestic sales volume declined 7% year-on-year to 6,13,248 units in Q4 FY25, compared to 6,57,330 units in the same quarter last year. On a sequential basis, volumes were down 13% from 7,07,105 units in Q3 FY25. Known for its popular Pulsar brand, the company sold 5,01,096 two-wheelers and 1,12,152 commercial vehicles during the quarter. On the exports front, Bajaj Auto saw strong momentum, shipping 4,89,686 units in Q4 FY25, up 19% from 4,11,246 units in the year-ago period. The board recommended a dividend of Rs 210 per share for the financial year ended 31 March 2025. Following the result, shares of Bajaj Auto fell 2.24% to Rs 8674.40.
