We find that:
$$f\left(5y^2\right)=625y^8+125y^6+25y^4+5y^2+1$$
Let us assume then that this can be factored into two quartics as follows:
$$625y^8+125y^6+25y^4+5y^2+1=\left(25y^4+ay^3+by^2+cy+1\right)\left(25y^4-ay^3+by^2-cy+1\right)$$
Let us further assume that all of $a,b,c$ are positive.
Expansion of the right side yields:
$$625y^8+125y^6+25y^4+5y^2+1=625y^8+\left(50b-a^2\right)y^6+\left(b^2-2ac+50\right)y^4+\left(2b-c^2\right)y^2+1$$
Equating coefficients gives the non-linear system:
$$50b-a^2=125$$
$$2ac-b^2=25$$
$$2b-c^2=5$$
The first and third give:
$$2b=5+\left(\frac{a}{5}\right)^2=5+c^2\implies a=5c$$
Substituting into the second equation, we obtain:
$$10c^2-b^2=25$$
Multiplying the 3rd equation by 10, we find:
$$20b-10c^2=50$$
Adding the last two results, we eliminate $c$ to obtain:
$$-b^2+20b=75$$
$$b^2-20b+75=0$$
$$(b-5)(b-15)=0$$
We then find that only the root $b=15$ allows $a$ and $c$ to be integers:
$$a=25,\,c=5$$
Hence:
$$f\left(5y^2\right)=\left(25y^4+25y^3+15y^2+5y+1\right)\left(25y^4-25y^3+15y^2-5y+1\right)$$