Bajaj Auto's EV Business Scales Up, Boosting Margins and Revenue
Bajaj Auto reports significant progress in its EV business, with EVs now contributing 25% to domestic revenue and margins expected to turn positive by FY25 end. The company achieved a 20% EBITDA margin in the last three quarters of FY25 and saw 93% year-over-year sales growth in March 2025. Additionally, Bajaj Auto International Holdings BV invested €50 million in Convertible Bonds issued by Pierer Bajaj AG to support KTM AG's production resumption and operations.

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Bajaj Auto has reported significant progress in its electric vehicle (EV) business, with improved margins and increased contribution to domestic revenue. The company has also made a strategic move in its international holdings, signaling continued growth and expansion.
EV Business Performance
Bajaj Auto's EV segment has shown remarkable growth, eliminating negative margins by the end of FY25. The company's focus on electric vehicles has paid off, with EVs now contributing a substantial 25% to domestic revenue. This shift towards electrification aligns with the global trend towards sustainable transportation and indicates Bajaj Auto's commitment to future mobility solutions.
Financial Highlights
Metric | Performance |
---|---|
EBITDA Margin | 20.00% in the last three quarters of FY25 |
March 2025 Sales Growth | 93.00% year-over-year |
Bajaj Auto achieved a robust 20.00% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin in the last three quarters of FY25, demonstrating strong operational efficiency and profitability.
March 2025 sales saw an impressive 93.00% year-over-year growth, partly attributed to the timing of Gudi Padwa, a festival that typically boosts vehicle sales.
Product Innovation
The company is set to launch a new Chetak model on the 3S platform, which is expected to enhance cost savings and contribute to margin growth. This move showcases Bajaj Auto's continued investment in research and development to stay competitive in the rapidly evolving EV market.
International Investment
In a significant development, Bajaj Auto International Holdings BV (BAIH BV), a wholly-owned subsidiary of Bajaj Auto Limited, has subscribed to Convertible Bonds worth €50 million (approximately ₹468.70 crore) issued by Pierer Bajaj AG (PBAG) on April 3, 2025. This strategic investment is aimed at supporting the funding needs of PIERER Mobility AG's subsidiary, KTM AG, for the phased resumption of KTM motorcycle production and operating costs.
Key details of the transaction include:
Detail | Value |
---|---|
Investment Amount | €50 million (₹468.70 crore at an exchange rate of 1 Euro = ₹93.74) |
Investment Type | Convertible Bonds |
Issuer | Pierer Bajaj AG (PBAG) |
Purpose | To facilitate funding for KTM AG's production resumption and operations |
This move strengthens Bajaj Auto's position in the international motorcycle market, as BAIH BV already holds a 49.90% stake in PBAG, which in turn owns 74.94% of PIERER Mobility AG, the parent company of KTM AG.
Outlook
With the strong performance of its EV business, improved margins, and strategic international investments, Bajaj Auto appears well-positioned for continued growth in both domestic and global markets. The company's focus on electric vehicles and its involvement in premium motorcycle brands like KTM, GASGAS, and Husqvarna through its international holdings demonstrate a balanced approach to future mobility trends and market diversification.
Historical Stock Returns for Bajaj Auto
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.71% | +3.21% | +7.11% | -20.77% | -11.12% | +237.01% |