Auto Q4FY25 Wrap: Two-wheelers lead PAT surge with TVS Motor, Eicher in front; top 13 counters to buy

The Indian auto sector reported a mixed Q4FY25 with two-wheeler majors and select OEMs stealing the spotlight, while several leading tyre and auto ancillary firms reported sharp declines in profitability, revealing a distinctly bifurcated performance across the board.

Among the most notable laggards, Tata Motors posted a steep 52% year-on-year (YoY) fall in Q4 net profit while its revenue barely grew by 0.53%. The stock has also dropped 5% in CY25 so far. Similarly, Apollo Tyres and Tube Investments of India struggled with declines in their profit after tax (PAT) at 48% and 42%, respectively, even as they reported modest growth in January-March quarter sales. These underwhelming showings are reflected in their stock performances too, with all three names delivering double-digit negative returns this calendar year.

Tyre manufacturers and ancillary firms faced particular headwinds. Balkrishna Industries' PAT fell 24% and Bosch saw a marginal 2% decline, despite decent topline growth. Both stocks were down 16% and 8%, respectively, in CY25 as of Tuesday, June 3, 2025.

In contrast, two-wheeler manufacturers delivered a strong show, with TVS Motor leading the pack by clocking an impressive 71% YoY growth in Q4 PAT, supported by a 16% rise in revenue. Its stock has returned nearly 16% in CY25 so far. Eicher Motors’ 19% PAT growth and Bajaj Auto’s 11% uptick in bottom line were other notable performances. Also performed well. Eicher’s stock also delivered over 11% returns on the YTD basis.

M&M and Hero MotoCorp too reported positive earnings growth, with M&M registering 14% PAT growth on the back of robust 20% revenue expansion. Hero MotoCorp’s profit rose nearly 8%, though its CY25 return stands at just 1%.

Auto ancillaries such as UNO Minda and Sundram Fasteners saw their profits dip marginally, despite a healthy 19% revenue growth in the case of UNO Minda.

Overall, the Q4 trend reveals a strong divergence between vehicle manufacturers and component suppliers, and also between two-wheeler firms and other categories like CVs and tyres. This divergence is mirrored in stock price performance for CY25, where only a handful of auto stocks have posted double-digit returns. Among them are TVS Motor with 16% returns, Maruti Suzuki at 12% and Eicher Motors at 11%, being the top three.


Commenting on the auto sector’s performance, “Om Ghawalkar, Market Analyst, Share.Market said that the domestic automobile sector achieved historic growth in FY2024-25, posting a 7.3% rise in domestic sales and a robust 19.2% jump in exports, signaling strong momentum across both local and global markets.

Citing SIAM data, Ghawalkar said that the passenger vehicle sales hit a record 4.3 million units, led by utility vehicles comprising 65% of the segment. “Exports also surged, particularly to Latin America, Africa, and developed economies, reaching 770,000 PV units. The two-wheeler segment saw 9.1% growth domestically, driven by scooters, while exports totaled 4.2 million units, dominating India’s overall vehicle exports, he said.

Auto Sales Data

Auto companies announced May automotive sales figures which reflected a mixed trend of dispatches across segments. The passenger vehicle segment's domestic wholesale volume growth moderated although UV (utility vehicle) players reported healthy growth. All other segments, however, saw a recovery on a YoY basis.

Kumar Rakesh of BNP Paribas Securities in a note said that the 2W domestic wholesale growth improved and was similar to retail trends. The 2W exports continued to post double-digit growth YoY, helped by expansion in new regions by OEMs. "CV dispatches were flat YoY, but MHCVs saw improvement MoM. Tractors saw healthy growth YoY, largely driven by M&M," he said.

Decoding the PV volume market share trends, Rakesh said that M&M gained YoY while Maruti Suzuki, Tata Motors, and Hyundai lost. As for the two-wheelers, TVS Motor, Royal Enfield (Eicher Motors) gained domestic volume market share Yo,Y while Bajaj Auto likely lost.

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Stocks to buy, sell or hold

Ghawalkar of Share.Market said that challenges such as a slower PV growth outlook and regulatory uncertainties in the electric bus space remain, notwithstanding industry fundamentals looking strong.

Maruti Suzuki

- Nuvama has a buy rating on the stock with target price of up to Rs 13,900

- Choice Broking has an 'Add' rating on the counter.

Tata Motors

- InCred has a 'Reduce' rating on the stock for a price target of Rs 642

- Motilal Oswal remains Neutral on the counter.

M&M: Buy | MOFSL | Target: Rs 3,482

Hyundai Motor | Buy | Target: Rs 2,050

Hero Moto | Buy | Nuvama/Jefferies/Bank of America/MOFSL | Target: Up to Rs 5,650

Bajaj Auto | Buy | Anand Rathi/Axis Securities | Target: Rs 9,890

MOFSL is Neutral on this stock.

TVS Motor

- HDFC Securities has an ‘Add’ rating on the stock

- Axis Securities has a ‘Hold’ rating for the price target of Rs 2,670

Eicher Motors | Sell | MOFSL | Target: Rs 4,649

MOFSL has a buy view on ancillary stocks like Apollo Tyres, CEAT, Endurance Technologies, Happy Forgings, CIE Automotive, Samvardh Motherson, Motherson Wiring and Tube Investments. Meanwhile, MOFSL has a sell recommendation on MRF.

(Data inputs by Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)