Auto stock falls 11% after company’s net profits decreased by 31% YoY 

Auto stock falls 11% after company’s net profits decreased by 31% YoY 


A leading automotive company in manufacturing vehicles has plunged over 11% during today’s trading. The drop followed after the release of Bajaj Auto’s second quarterly results for FY25. 

Stock Movement

After announcing its quarterly results, Bajaj Auto Limited’s share has plunged by 11.64%. The stock opened at ₹11,000.05 and is currently trading at ₹10,265.20, with a high of ₹11,279.35 and a low of ₹10,184.90. The market capitalization now stands at approximately ₹2,86,663.52 crore. 

Reason for Falls

Bajaj Auto Limited’s shares fell due to weaker results in Q2 FY25, primarily driven by a 31.42 percent drop in net profit to ₹1,385.44 crore. The decline was influenced by a one-time tax impact, along with sluggish growth in the domestic two-wheeler market. Additionally, The company’s management projected motorcycle sales growth of only 1–2%, significantly below the industry expectation of 5-6%. 

Q2 FY25 Result Walkthrough 

Bajaj Auto Limited’s consolidated revenue from operations has increased by 22.22 percent YOY, from Rs. 10,838.24 crore in Q2 FY24 to Rs. 13,247.28 crore in Q2 FY25, and grown by 11.02 percent QoQ from Rs. 11,932.07 crore in Q1 FY25. 

The standalone revenue has risen by 20.62 percent, from Rs. 10.777.27 crore in Q2 FY24 to Rs. 13,127.47 crore in Q2 FY25. Bajaj Auto has sold units from 11,02,056 to 12,21,504 in Q2 FY25, which has grown by 10.84 percent QoQ. 

The company’s consolidated net profit has decreased by 31.42 percent, from Rs. 2,020.05 crore in Q2 FY24 to Rs. 1,385.44 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has fallen by 28.65 percent QoQ from Rs. 1941.79 crore. The standalone net profit has risen by 9.2 percent YOY, from Rs. 1836.14 crore in Q2 FY24 to Rs. 2005.04 crore in Q2 FY25. 

Bajaj Auto has incurred revenue in various segments, but mainly earned revenue from the automotive segments by 95.78%, the investment segment by 2.91%, and the financing segment by 1.31% in Q2 FY25. 

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Company Profile

Bajaj Auto Limited leads India’s automotive sector as a prominent manufacturer of two-wheelers, three-wheelers, and quadricycles. Bajaj Auto headquarters stands in Pune, Maharashtra. The company produces popular motorcycle brands like Pulsar, KTM, Avenger, and Chetak electric scooters. Bajaj operates three manufacturing plants in India. The

company serves customers through a vast distribution network of over 79 countries, which includes Asia, Africa, Latin America, and Europe. 

The automotive segment drives Bajaj Auto’s primary revenue through its diverse vehicle portfolio and spare parts business. Bajaj maintains overseas operations through five international subsidiaries in Indonesia, Netherlands, Thailand, Spain, and Brazil. The company strengthens its market presence with two Indian subsidiaries, which include Chetak Technology and Bajaj Auto Consumer Finance. 

Written By, Nikhil Naik

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