Eicher Motors posts 25% jump in Q2 profit, revenue in line with estimates

Eicher Motors Ltd, the parent company of premium motorcycle brand Royal Enfield, reported a robust 24.5% year-on-year surge in consolidated net profit for the second quarter of fiscal year 2026 (July-September 2025), reaching Rs 1,370 crore compared to Rs 1,100 crore in the same period last year. The results, announced on November 13, 2025, highlighted strong operational performance amid favourable market dynamics, including a recent GST rate reduction on motorcycles under 350 cc that boosted accessibility and demand.

While the profit figure fell short of Bloomberg's consensus estimate of Rs 1,422 crore, it underscored the company's resilience in a competitive two-wheeler sector, where Royal Enfield continues to command premium positioning through iconic models like the Classic and Himalayan series. This earnings beat reflects Eicher's strategic focus on volume growth and cost efficiencies, contributing to its status as a key player in India's burgeoning premium motorcycle market.

Revenue from operations climbed 44.8% year-on-year to Rs 6,172 crore, surpassing analyst expectations of Rs 6,082 crore and signalling robust top-line expansion driven primarily by the motorcycles segment. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 39% to Rs 1,512 crore, exceeding the Bloomberg forecast of Rs 1,214 crore, though the EBITDA margin dipped slightly by 100 basis points to 24.5% from 25.5% a year earlier, aligning below the estimated 24.9%.

These figures indicate effective pricing strategies and supply chain optimisations, even as raw material costs and festive season investments tempered margin expansion. Eicher Motors, listed on the BSE and NSE, has seen its shares appreciate 39% year-to-date, though they closed 1.2% lower at Rs 6,798.8 on the BSE following the announcement, reflecting broader market volatility.

The standout performer was Royal Enfield, with motorcycle sales hitting a quarterly record of 327,067 units, a 45% increase from the previous year, fuelled by heightened consumer interest post-GST reforms. Managing Director B. Govindarajan noted that the company fully passed on the benefits of the rate cut to customers, enhancing affordability during the festive period and driving market penetration in both domestic and export channels.

Complementing this, the commercial vehicles arm—Volvo Eicher Commercial Vehicles (VECV)—posted steady growth, with sales of 21,901 units up 5.4% year-on-year and segment revenue rising 10.3% to Rs 6,106 crore, while maintaining leadership in the light and medium-duty truck category (5-18.5 tonne GVW). This diversified portfolio has been pivotal for Eicher, mitigating risks from segment-specific slowdowns and supporting overall profitability.

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Looking forward, while no explicit guidance was issued, management expressed optimism about sustained demand momentum, underpinned by ongoing product launches and international expansion efforts. Eicher's performance aligns with India's automotive industry's recovery trajectory, where two-wheeler exports and premiumisation trends are gaining traction amid global supply chain stabilisations. As the company navigates potential headwinds like input cost inflation and regulatory changes, its ability to leverage Royal Enfield's brand equity positions it well for achieving full-year targets, potentially reinforcing investor confidence in the long term.

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