Bajaj Auto May 2025 Sales Report: Export Surge Offsets Domestic Weakness | Q1 FY25 Outlook | Profit From It

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Bajaj Auto May 2025 Sales Report: Export Surge Offsets Domestic Weakness | Q1 FY25 Outlook

Created by Piyush Patel in Company Update 2 Jun 2025

📘 Bajaj Auto May 2025 Sales Update & Cash Flow Insights: What It Means for Q1 FY25

🚦 Sales Performance: A Quick Recap (May 2025 vs May 2024)

Segment	May 2025	May 2024	YoY Growth (%)
🏍️ 2-Wheelers – Domestic	1,91,412	1,88,340	+2%
🌍 2-Wheelers – Exports	1,40,958	1,17,142	+20%
🚛 Commercial Vehicles – Domestic	34,321	36,747	-7%
🌐 Commercial Vehicles – Exports	17,930	13,094	+37%
📦 Total Vehicles Sold	3,84,621	3,55,323	+8%

📊 Year-to-Date (Apr–May 2025)

Segment	Apr–May 2025	Apr–May 2024	YoY Growth (%)
🏍️ 2-Wheelers – Domestic	3,80,027	4,05,290	-6%
🌍 2-Wheelers – Exports	2,70,280	2,41,981	+12%
🚛 Commercial Vehicles – Domestic	66,321	68,880	-4%
🌐 Commercial Vehicles – Exports	33,803	27,428	+23%
📦 Total Vehicles Sold	7,50,431	7,43,579	+1%

🧾 Cash Flow Health Check: FY24 to Q1 FY25 Implication

🔍 Based on Bajaj Auto’s latest available consolidated cash flow statement (FY24 or Q4 FY24):

Cash Flow Metric	Value (₹ Cr)*
Cash Flow from Operations	✅ Positive
Cash Flow from Investing	❌ High Outflow
Cash Flow from Financing	❌ Outflow (Dividend, Buyback)
🔻 Net Cash Flow	Negative
🔻 Free Cash Flow (FCF)	Negative

*approximate values based on the latest available statements

🧠 Interpretation:

Despite operational profits, heavy capital expenditure and cash outgo (likely toward product development, capacity expansion, or dividends) have resulted in negative Free Cash Flow. This signals short-term liquidity strain — a critical insight for long-term investors.

📉 Q1 FY25 Outlook: A Balanced View

✅ Positives:

Strong export performance could continue to drive revenues.

Potential margin improvement from premium product mix.

⚠️ Concerns:

Domestic demand weakness is a red flag for volume-led growth.

Negative Free Cash Flow could limit expansion flexibility or impact cash reserves.

🔮 Overall Sentiment:

Cautiously Optimistic — growth exists, but liquidity and domestic momentum need close tracking in Q1 FY25.

📌 Conclusion

Bajaj Auto is navigating a mixed terrain: exports are delivering but domestic and cash flow indicators signal the need for caution. Investors should monitor upcoming Q1 results not just for profit growth, but for sustainability of cash flow and capex strategies.

📄 Disclaimer:

This blog is intended solely for educational purposes. It is not investment advice. Data used is sourced from company filings and public disclosures. Investors