Bajaj Auto Soars: Q2 Profit Jumps 53% on GST Boost and Festive Demand

Bajaj Auto has announced impressive financial results for the quarter ending September 2025. The company's consolidated net profit saw a significant jump of 53%, reaching ₹2,122 crore, largely attributed to positive consumer sentiment boosted by the implementation of GST 2.0 and the festive season. Total revenue from operations grew by a healthy 19% to ₹15,253 crore. Notably, Bajaj Auto's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surpassed ₹3,000 crore for the first time, with the EBITDA margin improving to 20.5% for the quarter.

The domestic motorcycle business experienced double-digit revenue growth, primarily driven by the sport segment, especially premium bikes. The commercial vehicle segment also saw robust growth, with its electric portfolio performing exceptionally well and achieving a 1.5-fold year-on-year increase. The company highlighted that the domestic business delivered record revenue, supported by premium bikes and electric vehicles, which continue to scale up despite supply constraints this quarter, adding over ₹10,000 crore in revenue over the last two years.

Bajaj Auto faced production constraints in its electric three-wheeler (15%) and electric two-wheeler Chetak (50%) portfolios but swiftly adapted by using in-house expertise to switch to alternate LRE-based magnets and developing new LRE sources to secure supply. Sales for KTM and Triumph brands recorded their best quarter ever, with combined domestic retail sales and exports exceeding 60,000 bikes, marking a 70% year-on-year increase. Exports across two-wheelers and three-wheelers grew 35% year-on-year.

Impact: This strong financial performance, driven by robust demand and strategic product launches, is likely to positively influence investor confidence and potentially lead to an upward movement in Bajaj Auto's stock. The company's ability to overcome production challenges and its focus on premium and electric segments signal strong future prospects. Rating: 8/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. EBITDA Margin: A profitability ratio calculated by dividing EBITDA by total revenue, indicating how much profit a company makes for every dollar of sales. GST 2.0: Goods and Services Tax 2.0. Refers to potential improvements or changes in the existing GST regime designed to simplify taxation and boost the economy. Sequential Volume-Led Growth: Revenue growth that occurs from one period to the next (e.g., Q2 to Q3) primarily due to an increase in the number of units sold. Electric Portfolio: A range of products or services that are powered by electricity. Year-on-year (y-o-y): A comparison of a metric from one period to the same period in the previous year (e.g., Q2 2025 vs. Q2 2024). Festive Sentiment: The positive mood and increased consumer spending typically observed during major festival seasons. Fillip: A boost or stimulus. Seasonal Upswing: A period of increased activity or performance that occurs predictably during certain times of the year. Traction Motors: Electric motors used in vehicles that provide the power to move them. LRE-based Magnets: Magnets made using Rare Earth elements, often used in high-performance electric motors. Supply Security: Ensuring a stable and reliable supply of raw materials or components. Domestic Retail Sales and Exports Billing: The total value of motorcycles sold within the country and shipped to other countries.