TVS Motors vs Bajaj Auto vs Eicher Motors vs Hero MotoCorp: Here’s how motorcycle players fared in Q4FY25

The two-wheeler auto industry earnings season concluded yesterday with Bajaj Auto announcing its Q4FY25 result. The two-wheeler automobile industry witnessed strong demand across the key segments and helped in reporting record turnover numbers. However, companies like Hero MotoCorp reported sluggish numbers. New trends emerged from the FY25, as consumers showed more interest in mid-size and high-end two-wheelers.

Robust turnover and topline growth

The overall top-line growth for the two-wheeler space remained strong across the board for the quarter. TVS Motors and Eicher Motors recorded their highest-ever revenue for the quarter, while Bajaj Auto achieved the same feat for FY25. Eicher Motors was the top performer in terms of YoY growth in Q4FY25 at 23% YoY, followed by TVS Motors at 17% YoY, Bajaj Auto at 6% YoY, and lastly Hero MotoCorp at 3.6% YoY. Bajaj Auto missed the double-digit growth mark due to the temporary suspension of KTM exports. However, Eicher Motors, Bajaj Auto and TVS Motors achieved highest highest-ever volume sales during the quarter. Meanwhile, Hero MotoCorp continued to maintain pole position in the domestic two-wheeler segment market share at 30%.

Steady operational performance

The overall sales volume growth and record high turnover have helped in maintaining strong efficiency. The majority of the two-wheeler players reported strong operational performance. The Royal Enfield segment reported an EBITDA of ₹1,258 crore, up 11% YoY, due to strong dealership expansion and dominating position in the premium segment. TVS Motors reported EBITDA of ₹1,333 crore, up by 43% YoY from ₹926 crore in the previous year’s similar quarter, and the EBITDA margin stood at 14%. Bajaj Auto, on the other hand, reported 6% YoY growth at ₹2,461 crore. Lastly, the industry leader, Hero MotoCorp, reported a 12% YoY jump in the EBITDA at ₹5,868 crore with an EBITDA margin of 16% for Q4FY25.

In summary, the operational performance remained steady for all the players primarily due to a favourable demand scenario and better cost optimisation measures.

Bottom line

The industry leader, Hero MotoCorp, reported a 16% YoY jump in net profit at ₹4,610 crore, despite a tepid topline growth. Eicher Motors, on the other hand, reported a 27% YoY jump in the bottom line at ₹1,362 crore for the two-wheeler segment. TVS Motors stood as the top performer in the bottom-line growth at ₹702 crore, up from ₹411 crore in Q4FY24. Meanwhile, Bajaj Auto reported only 6% growth in Q4FY25 profit after tax, largely due to subdued domestic sales numbers. The bottom-line growth of all the industry players was largely in the range of industry expectations.