Bajaj Auto Q2 preview: Strong volumes, rich product mix may drive revenue increase 23%

Pune-headquartered Bajaj Auto Ltd is set to release its earnings report for the second quarter of FY 2025 on October 16. Increase in volumes and diversified product mix are expected to drive the company’s sales to double-digit growth rate on a year-on-year basis.
According to a Moneycontrol poll of eight brokerage firms, the Triumph maker is projected to report a 23 per cent year-on-year growth in revenue to reach Rs 13,266 crore. Net profit is estimated to rise 21 per cent to Rs 2,227 crore from Rs 1,836 crore in the same quarter last fiscal.
Earnings estimates of analysts surveyed by Moneycontrol are in a narrow range, indicating that any positive or negative surprise could trigger a sharp reaction in the stock price.
What factors are driving Bajaj Auto earnings?
Stable demand: Two-wheeler sales witnessed a growth of 16 per cent year-on-year, driven by a marginal increase in average selling price (ASP) due to better product mix, expansion of the premium two-wheeler segment, growth in exports and price hikes during the year.
Rich product mix: Bajaj Auto has made several launches in the past one year, which the brokerage expects will be key growth drivers in the coming quarters as well. For instance, it launched its biggest Pulsar in May 2024. The mixed improvement in the two-wheeler segment and stable growth in the three-wheeler business is expected to be slightly offset by growth in the electric vehicle (EV) business.
Margin improvement: EBITDA margin is expected to improve by around 52 basis points year-on-year due to better product mix, operating leverage and cost control measures. Vistara will also benefit from better net pricing.
What to look for at the quarterly show?
The demand scenario in domestic and overseas markets and CNG/e-mobility initiatives are important factors to keep an eye on. Apart from this, another important thing to track is the launch pipeline, progress of e-three wheelers and raw material prices.
Shares of Bajaj Auto closed at Rs 11,921, up 0.2 per cent from its previous close. Bajaj Auto shares have gained over 30 per cent in the last six months.