Bajaj Auto Q3 Preview: Strong Exports Offset Domestic Slump, but Margins May Take a Hit
Bajaj Auto is set to announce its Q3 FY25 earnings, with analysts forecasting modest revenue growth driven by strong export performance. However, domestic sales have remained sluggish, declining by 9% year-on-year. Exports, particularly in two-wheelers and three-wheelers, have shown a 22% growth, helping to cushion the impact of domestic struggles.
Despite solid export numbers, the company’s EBITDA margins are expected to face pressure, dropping by 17-30 basis points. This is largely due to a shift toward lower-margin products, including entry-level two-wheelers and electric vehicles. Profitability could be supported by benefits from the Production-Linked Incentive (PLI) scheme, with variations in profit after tax (PAT) depending on these accruals.