Bajaj Auto Ltd., a major player in India’s two-wheeler and commercial vehicle segment, reported its sales figures for May 2025, showing a positive growth trajectory in volumes but facing a mixed reaction from the stock market. On Monday, June 2, the company’s shares declined by 2%, trading at ₹8,433.5, reflecting investor caution despite encouraging sales numbers.

Strong Sales Growth in May

The two-wheeler segment, which is Bajaj Auto’s core business, witnessed an 8% year-on-year growth in May. The company sold 3,84,621 units of two-wheelers, compared to 3,55,323 units in May 2024. This growth indicates a steady demand in the domestic market amid competitive conditions. The company also reported a rise in sales of commercial vehicles by 5%, with 52,251 units sold in May 2025 against 49,841 units last year.

Breaking down the two-wheeler sales further, Bajaj Auto’s primary two-wheeler segment saw an increase to 3,32,370 units from 3,05,482 units in the corresponding month of the previous year. Notably, the export segment experienced a robust growth of 22%, underscoring Bajaj Auto’s strong presence in international markets and increasing acceptance of its products abroad.

Quarterly Financial Performance

The company’s financial results for the March quarter (Q4 FY2025) also showed a positive trend. Revenue increased by 5.9% year-on-year to ₹2,049.3 crore, contributing to a total revenue of ₹12,148 crore for the full fiscal year, reflecting a steady business expansion.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose by 6.2% to ₹2,450.6 crore from ₹2,306 crore in the previous year. This figure also surpassed analyst expectations, as it was higher than the estimated ₹2,406 crore. This indicates improved operational efficiency and better cost management by Bajaj Auto.

Market Reaction and Stock Performance

Despite these positive sales and financial metrics, the market responded cautiously. Bajaj Auto’s shares dropped 2% on June 2, reflecting some investor concerns or profit booking. The stock price has also declined sharply from its 52-week high of ₹12,774, recorded on September 27, 2024, showing a fall of over 35% in recent months.

This divergence between operational performance and market valuation may be driven by broader market factors, sectoral challenges, or investor expectations regarding future growth and margins.

Overall Sales Outlook

For the first two months of the current financial year 2026, Bajaj Auto sold a total of 7,50,431 units, slightly higher than 7,43,579 units sold during the same period last year. This steady volume growth indicates continued demand in both domestic and export markets, which is critical for the company’s sustained revenue growth.

Summary and Key Takeaways:

• Bajaj Auto’s two-wheeler sales rose 8% in May 2025 with commercial vehicle sales growing 5% and exports surging 22%.

• The company reported a 5.9% rise in quarterly revenue and 6.2% increase in EBITDA, beating estimates.

• Despite strong sales and earnings growth, Bajaj Auto shares fell 2% on June 2 and remain 35% below the 52-week high.

Bajaj Auto’s latest sales and financial results showcase a company performing well operationally with growth across segments and markets. However, the stock market’s muted response highlights the complexities investors consider beyond just sales data, such as future outlook, valuation, and sector trends.

The Upcoming IPOs in this week and coming weeks are Ganga Bath Fittings, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.