Chairman’s Letter
Dear Shareholders,
It gives me immense pleasure to write to you and share the highlights of what has turned out to be yet another milestone year for your Company.
FY 2025 saw your Company raise the bar even higher as it dynamically navigated a fast changing external environment with agility and decisiveness, to deliver record financial results.
We closed the year with our highest-ever revenue and profits, accompanied by solid cash flows, all underpinned by focused execution across our businesses and continued emphasis on innovation, scale, and resilience.
Let me give you a sense of the performance –
- Revenue crossed the ₹ 50,000 crorae mark for the first time as it grew 12% year-on-year, powered by the record performance across both vehicle and spares sales.
- EBITDA delivered a record ₹ 10,101 crore, up 14%, while the EBITDA margin improved to 20.2% and held steady across quarters, led by dynamic price and cost management, improved dollar realisation, and operating leverage.
- Standalone Profit Before Tax was ₹ 11,052 crore and Profit After Tax was ₹ 8,151 crore — both registering new highs. It is worth noting that the 9% growth in Profit After Tax is after absorbing a one-time exceptional deferred tax provision of ₹ 211 crore in Q2 of this year, on account of the withdrawal of indexation benefits on certain asset classes and changes in tax rates as announced in the Finance Act, 2024. Adjusting for this one-off impact, Profit After Tax grew a robust 12% year-on-year, underscoring the quality and sustainability of the underlying earnings.
- Free Cash Flow generation for the year was about ₹ 6,500 crore and we closed the year with a strong surplus cash balance of nearly ₹ 17,000 crore, underscoring the continued strength and resilience of our Balance Sheet. This was achieved despite significant investments during the year — including ₹ 3,100 crore on strategic bets in subsidiary companies (Bajaj Auto Credit, Bajaj Auto International Holding BV and Bajaj Do Brazil) and ₹ 700 crore towards capex. Over ₹ 2,200 crore were returned to shareholders through dividends, reflecting our commitment to rewarding shareholders even as we invest for the future.
Importantly, we delivered these results against the backdrop of a shifting macroeconomic landscape, both domestically and internationally. You may recall that last year, our performance was largely driven by a buoyant domestic market, while exports remained subdued. This year, while we entered with similar strong domestic momentum and a slow recovery in exports, the story flipped in the second half — domestic demand slowed, but exports accelerated sharply. That your Company not only navigated this transition but delivered its best-ever performance is a testament to the very versatile nature of our business, which drives the resilience of our results. When one engine slows, the other steps up — allowing the enterprise to stay on course.
Underpinning the landmark performance was another notable feature – a year that was marked by the resilient performance on the existing ICE (internal combustion engines) business but turbo-charged by the rapid scale up to leadership on the emerging electric vehicles portfolio.
Given its significance to the year’s results, I must call out that it is particularly heartening to see the steady and surefooted progress that your Company has made on building the electric vehicles business. In this last year, we have delivered over ₹ 5,500 crore of revenue from electric vehicles, that now comprises ~20% of domestic sales and importantly achieved segment leadership position on electric scooters during the year and on electric three wheelers as well as we entered FY26. From virtually nothing on this count a few years ago it is now the country’s largest electric two + three wheeler business by revenue. The fact that all of this has been done in about 3 years, is another fitting example that bears testimony to the agility and adaptability of the Bajaj Auto organization.
Apart from the financial measures, there have been milestones spread across the broad spectrum of our businesses as well –
●Our Domestic business delivered its highest-ever revenue, growing double-digit growth across both two and three wheelers.
❍In Domestic Motorcycles, revenue for our strategically important and focussed segment of the 125cc+ hit a new peak. Pulsar, our flagship brand, remains a strong force in the sports motorcycle segment, leading the charge as a symbol of Indian engineering and excellence admired across the globe. Annual revenues from this brand at nearly ₹ 15,000 crore, of which, ₹ 10,000 crore domestically, on the back of the highest-ever retails in 125cc+ segment reinforcing the strength of its proposition. While the overall domestic motorcycles performance was subdued by a relatively weak second half that saw a loss of market share, we view this as a critical area and are taking clear and targeted actions to regain momentum.
❍This year will also remain important for us and the motorcycling industry as it saw the launch of the Bajaj Freedom 125 — the world’s first CNG motorcycle – representing our commitment to breakthrough innovation while reimagining mobility. ‘Freedom’ is more than a bike; it is a statement of how engineering and environmental stewardship can go hand in hand.
❍As for our partner brands – KTM and Triumph, they clocked nearly 1 lakh units domestically, reflecting the growing preference for premium mobility and our decisive presence in this space. Buoyed by the strength of an expanded / upgraded portfolio and a wider reach in terms of city and dealership coverage, the interventions are yielding encouraging results. While KTM accelerated momentum in the latter part of the year, Triumph sales were up >60% year-on-year in the domestic market.
❍In Commercial Vehicles, we have registered highest ever volumes with revenues delivering well ahead of ₹ 10,000 crore milestone for the first time. Notably the electric three-wheeler business, which is under two years old, has rapidly scaled up to 20% of the Commercial Vehicles business revenue, with 3X increase in market share (and further going on to achieve segment leadership at the start of FY26).
❍This was the year in which Chetak hit leadership in the electric scooters market as volumes more than doubled year-on-year. The launch of the affordable variant earlier in the year and rapid expansion of the network to >4,000 touchpoints were key interventions that propelled the business to leadership.
●Exports staged a strong comeback with double-digit growth that was led by Latin America, which continued its strong momentum, registering yet another high over what was already a record performance last year. Our brands continue to enjoy deep trust and loyalty among customers, helping us reclaim volumes and drive share across markets.
●Spares reported yet another year of record revenue driven by sharper execution, conscious supply chain interventions to improve service levels and working closely with channel partners.
In all, as you would make out, dear Shareholders, it has been a year with much to cheer about.
Commenting briefly on our consolidated results since it has been impacted by an out-of-the-ordinary situation. It is unfortunate that our consolidated profit for the year was adversely hit by the share of loss that we had to account for arising from the investment in our associate company (Pierer Mobility AG / KTM AG), given the restructuring context of that business in Austria.
Outside of our Netherlands investments subsidiary, Bajaj Auto International Holdings BV, who’s results was affected by the KTM restructuring, for our other key operating subsidiaries – Bajaj Auto Credit Limited and Bajaj Do Brasil Comercio De Motocicletas Ltda, we made substantial headway on our strategy and plans for these businesses.
Our captive financing business, Bajaj Auto Credit Limited continued to deepen its customer connect, financing over 7.5 lakh accounts and turning profitable in its very first year. The company was in ramp up phase for the most part of the year and finished its national coverage by the end of December 2024, positioning itself well to meet the future growth needs and serve the customers of the Bajaj Auto business.
As for our subsidiary in Brazil, the business has grown scale quarter after quarter particularly after supplies were unlocked following the commissioning of our first company-owned overseas assembling facility in Manaus in June 2024. The business ended the year at a quarterly run rate that was in excess of what it sold for all of the previous financial year. To leverage the attractive market opportunity, capacity is being further increased, the portfolio augmented and the network expanded to cover the country. I truly believe Brazil will emerge as a sizeable and exciting market for us in the years ahead.
Alongside delivering robust financial performance and business excellence, we also undertook transformative steps to make our organization future fit.
On the operations front, our Chakan plant achieved the highest milestone on its TPM journey. In 2024, it was awarded the ‘World Class TPM Award’ by Japanese Institute of Plant Maintenance [JIPM], making it the first automotive company in India to achieve this prestigious award. As your Company has been practicing TPM consistently for the last 25 years, in the last year Bajaj Auto also received the award for ‘Global Leaders Initiative for TPM’, a first for any Indian company.
In the year gone by, we envisioned Project Velocity, built around the 4S Framework focusing on four key principles. This exercise involved a thorough analysis of our Business Units, leadership-led reviews, and iterative refinements to each unit’s organization structure. This was followed by a considered mapping of talent to key roles, ensuring alignment with business priorities, and stronger cross-functional collaboration. It resulted in simplification of the organization structure and flattening of the leadership layers to provide perfect correlation between our leadership levels, 4S framework and our leadership competency framework around –
●Simplicity of strategy – Anticipate the future with simplicity.
●Singularity of objectives – Drive singularity of alignment across the organization.
●Synergy of teams – Bring synergies by enabling the cross functional teams to continuously adapt to the dynamic environment.
●Speed of Execution – Act with speed in flawlessly executing and continuously improving.
These changes have already started to positively impact agility, efficiency, and speed of execution in the Company.
To round it all up therefore, as I reflect on the year gone by, for me it has brought home a profound business truth – in uncharted waters, competitiveness comes not from always having the wind at your back, but from being able to adroitly adjust your sails as the winds shift. Watching our teams rise to the challenge has been both energizing and gratifying. That we could do all this while staying true to our values, supporting our communities, and building for the future makes me proud not just of the performance but of the journey.
As we shift gears to the next year, the environment has turned increasingly volatile, uncertain and complex. In these times, what keeps me reassured and optimistic is –
- We are in a country which offers a sizeable market opportunity and growth potential at home
- We have a well-regarded presence as ‘The World’s Favourite Indian,’ that allows us to serve and touch the lives of customers across 100 countries the world over
- We have a well run business that is powered by a capable, committed and engaged team and supported by strong relationships with partners in the front and back end
That said, I have no doubt that the road ahead will have its turns and bumps, as always. However, we are not standing still. We have a clear set of actions to revive domestic momentum, accelerate exports rebound, strengthen our products/proposition/presence, and continue to lead the transition toward electric mobility.
We remain committed to:
●Driving the competitiveness in the strategically relevant and important 125cc+ motorcycle segment
●Scaling up Chetak even further with a view growing volumes, market share leadership and improving unit economics
●Expanding and replicating our market leadership to the electric three-wheelers segment, mirroring the strong position that we have built in the ICE category
●Sustaining and broad basing the recovery in exports, while leveraging the uptick across select overseas markets
●Staying the course relentlessly on delivering differentiated product innovation, impactful in-market activation and superior customer experience
●Investing sufficiently behind growth priorities, while building our strategic growth enablers and capabilities including through our subsidiaries
●Continuing the focus on dynamic financial management to ensure competitive and profitable growth with strong cash flow generation
In closing, I wish to congratulate and thank our CEO and Managing Director, Rajiv Bajaj, and his exceptional leadership team, along with every member of the Bajaj Auto family — across plants, offices, and geographies — who made this year’s success possible.
I would also like to commend our partners, our vendors, distributors, dealers, service providers and many more in the wider ecosystem who are deeply instrumental in enabling us deliver day in day out. We appreciate each contribution and take pride in these relationships.
And to you, our shareholders — thank you for your continued trust. It is both our foundation and our fuel for the road ahead. We have done it this year. And with your support, I believe we will do it again in FY2026 — and better.
Yours sincerely,
Niraj Bajaj
Chairman