Bajaj Auto Faces Financial Strain Despite Strong Earnings and Long-Term Resilience

Bajaj Auto has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending June 2025. The company reported its highest quarterly PBDIT at Rs 2,792.94 crore and a PAT of Rs 2,210.44 crore, alongside an EPS of Rs 79.15, indicating strong earnings capabilities. However, the company is facing difficulties with its operating profit to interest ratio, which stands at a low of 12.48 times, and interest expenses reaching Rs 223.76 crore, highlighting financial strain.
In terms of market performance, Bajaj Auto's stock price has seen fluctuations, with a current price of Rs 8,177.05, down from a previous close of Rs 8,230.10. Over the past year, the stock has experienced a decline of 13.12%, contrasting with a modest gain of 2.48% in the Sensex during the same period. Despite these challenges, Bajaj Auto has shown resilience over longer time frames, with a remarkable 217.50% return over the past decade, significantly outperforming the Sensex's 184.63% return. This long-term performance underscores the company's potential amidst current financial hurdles.