Bajaj Auto Stock made a gap-up opening following the announcement of quarterly result. As told by the company in a statement, the revenue growth was underpinned by double-digit volume growth, with the sustained buoyancy on the domestic front cushioning the weak, albeit improving export performance.

The company's revenue from operations beat the market estimate by 5.6%, with revenue from operations rising to Rs 10,777.27 crore compared to Rs 10,203 crore in the same period last year, largely aided by falling commodity costs and price hikes the company effected. EBITDA during the quarter rose 21.3% to Rs. 2,132.8 crore from Rs. 1,758 crore, YoY, while EBITDA margin expanded by 260 bps to 19.8% from 17.2%, YoY. Operating margin stood at 19.79%, compared to 17.23%.

The domestic business registered a new peak during the second quarter, supported by sustained competitive growth on 125 cc+ motorcycles and the acceleration of three-wheeler sales. Two-wheeler sales fell 13.5% year-on-year to 8.82 lakh units, while domestic two-wheeler sales dropped 19% to 5.05 lakh units. Commercial vehicle sales rose over 30% to 1.72 lakh units, while domestic commercial vehicle sales jumped 81% to 1.32 lakh units. Overall exports declined 9% YoY to 4.16 lakh units. The higher base effect has subsided, and the domestic two-wheeler volume should grow in the ongoing quarter. The margin expansion was driven by better realisation and a richer product mix, which more than covered the drag arising from investments in growing electric scooters.

Bajaj Auto had a market share of 11% in the electric two-wheeler market at the end of the September quarter, compared to 5% last year. The market share held steady with volume upticks in Africa, LATAM, and SAME, allowing for a slight buildback of inventory in select markets.

Key risks for Bajaj Auto include lower-than-expected growth in India due to a slowdown in macros, a delay in demand recovery in Africa, Asia, and Latin America regions due to weak fundamentals, the failure of new products in EVs, scooters, and premium motorcycles, a spike in commodity prices, and an adverse currency movement.

A few new launches and upgrades across 2W, 3W, and EVs, along with a ramp-up in Triumph and Chetak volumes, will support growing the market.

The stock at the time of reporting was trading in green at Rs. 5432, up 5.74%.