Eicher Motors Shares May Hit Top Speed on Record Q4 Revenue

Shares of Eicher Motors may ride higher today as the company has posted a better-than-expected earnings for the March quarter. The stock was already up 1% on the National Stock Exchange during the pre-open session. In addition to strong quarterly financials, its strong operational performance is also expected to drive investors’ confidence.  

 The parent company of Royal Enfield, recorded an over 27% on-year growth in consolidated net profit for the quarter, along with over 23% growth in revenue for the period. This was the highest ever quarterly revenue the company has ever recorded. Moreover, Royal Enfield recorded its highest-ever quarterly sales with 2,80,801 units in Q4, over 23% more than the year-ago quarter.  It also dispatched over 1 million units in the full financial year, for the first time ever.

 “We have had a remarkable year at EML and have reported exceptional performance across both Royal Enfield and VE Commercial Vehicles. In the motorcycle business, the middleweight segment saw a lot of action from our peers,” Siddhartha Lal, chairman of Eicher Motors, said. “… Royal Enfield stood head and shoulders above everyone else to sell one million motorcycles annually, for the first time in its history.”

“We delivered our best-ever financial performance and despite a slow start to the year, we built strong momentum in the second half, launching six new motorcycles…” B Govindarajan, MD of Eicher Motors and CEO of Royal Enfield, said. “We also strengthened our international footprint, with consolidated exports surging 29.7% to 1,00,136 units…” he added.

The company had 8.5% market share in mid-size (250-750cc) domestic motorcycle market in FY25. For the March quarter, Eicher Motors’ earnings before interest, tax, depreciation, and amortisation was Rs 1,258 crore, marking growth of over 11% year-on-year. Eicher’s VE Commercial Vehicles business dispatched 90,000 units in FY25. VECV is a joint venture between Eicher Motors and Volvo group VECV revenue for the March-ended year grew nearly 8%, with a net profit recorded at Rs 1,286 crore.

Jefferies has maintained its ‘buy’ call on the stock as it believes Royal Enfield to be the key beneficiary of premiumisation in two-wheeler space. According to the brokerage firm toughest phase of competition is behind.