Two-wheeler players like Bajaj Auto, TVS Motor Company and Hero MotoCorp have benefited strongly from the recent GST cut in vehicles below 350 cc along with the strong festive buying season in the September 2025 quarter.
And it was no surprise that two-wheeler stocks have been in demand – TVS Motor Company ended 0.4% higher at Rs 3,458.6 on Friday and not too from its 52-week high of Rs 3,704 that was reached on 23 October 2025.
Meanwhile, Hero MotoCorp ended 0.5% lower on Friday at Rs 5,295.8, and not too far from its 52-week high of Rs 5,704 that was reached on 23 October 2025.
And Bajaj Auto ended marginally higher on Friday at Rs 8,724.2 on Friday, and it had reached its 52-week high of Rs 10,190 on 7 November, 2024.
Bajaj Auto versus TVS Motor Company – September 2025 quarter
Bajaj Auto’s vehicle sales grew 5.9% y-o-y to 1.29 million units in September 2025 quarter. The Pune-based company benefited from its export sales at 553,327 units in the September 2025 quarter, a growth of 24.4% y-o-y.
Bajaj Auto’s total vehicle sales in the June 2025 quarter were broadly flat on a y-o-y basis at 1,111,237 units, given the sluggish consumer spending patterns in urban and rural areas.
Meanwhile, in the second quarter of FY26, in overseas market, sales of commercial vehicles like its 3-wheelers Bajaj Maxima were brisk, and the company has also highlighted strong sales of high-end KTM motorcycles
As a result, the company’s standalone revenue from operations grew 13.7% y-o-y to Rs 14,922 crore. Strong exports helped its core operating profit margin improve nearly 30 basis points y-o-y to 20.4% in the second quarter of FY26. Its standalone net profit also rose 23.6% y-o-y to Rs 2,479.7 crore in the September 2025 quarter, even though there was a high tax base in the previous year.
In the September 2024 quarter, the company had a higher tax burden, a deferred tax — exceptional item of Rs 211.3 crore relating to withdrawal of indexation benefit on long-term capital gains on debt mutual funds purchased prior to 1 April 2023.
Meanwhile, smaller rival, TVS Motor Company reported a 22.7% y-o-y growth to 1,506,950 units in the September 2025 quarter. The company recorded its highest ever sales of vehicles in a quarter in terms of units sold. Strong demand for its motorcycles like TVS Apache and HLX in overseas markets helped two-wheeler exports rise 31% y-o-y to 3.63 lakh units in the second quarter of FY26.
The Chennai-based company’s standalone revenue from operations grew 29 % y-o-y to Rs 11,905.4 crore, and its core operating profit margin rose 130 basis points y-o-y to 13% in the quarter in the review.
Strong demand for its vehicles helped TVS Motor Company’s standalone net profit rise 36.9% y-o-y to Rs 906.1 crore in the second quarter of FY26.
Hero MotorCorp will declare its September 2025 quarterly results on 13 November, 2025 and is not included in this analysis.
Vehicle sales in October 2025
Auto dealers had managed to clear unsold inventory in the system late in the September 2025 quarter.
After a strong September 2025 quarter for vehicle sales, the sales trend for leading players in October 2025 has been uneven.
For instance, Bajaj Auto reported an 8 % y-o-y growth in vehicle sales to 518,170 units in October 2025.
And TVS Motor Company reported an 11% y-o-y growth in October 2025 sales to 543,557 units.
However, Hero MotoCorp sold 635,808 units in October 2025, a fall of nearly 6% y-o-y.
Investors will be closely monitoring the monthly sales figures of leading two-wheeler players to see if the uptrend in the industry continues.
Efficiency riders – Return on Capital Employed (ROCE)
TVS Motor has a ROCE on a standalone basis of 34.7% for the current financial year, according to Screener.in, while it is 37.6 % for Bajaj Auto.
Growth strategy – new models to be launched
To leverage the pick-up in demand over the few quarters various new models are expected to be launched.
TVS Motor Company unveiled 6 new models at an exhibition in Milan, Italy and they include TVS Tangent RR Concept, a super sport bike with a monocoque sub-frame, and TVS M1-S, its first electric maxi scooter.
Meanwhile, Bajaj Auto’s new launches planned include the Avenger EX 450, a new 125cc motorcycle, and an electric Pulsar.
Valuations – Investors on Dalal Street
Bajaj Auto trades at a standalone P/E of 27.9, according to Screener.in, while it is more than 50 times for TVS Motor Company.
Clearly, both the two-wheeler stocks appear to have valuations that are on the higher side and investors should keep a close watch on whether the companies can continue meet market expectations of them.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclosure: The writer and his family do not hold the stocks discussed in this article.
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