Record festival sales, GST cuts help Eicher Motors log 24% profit rise

Revenue hits all-time high, GST cut boosts demand for sub-350cc bikes; seeks uniform 18% GST across all motorcycle segments to boost domestic demand and global competitiveness

Eicher Motors on Thursday said that its consolidated net profit surged 24 per cent year-on-year (Y-o-Y) to ₹1,369 crore during the second quarter of the financial year 2025-26 (Q2FY26), driven by robust festive demand, GST rationalisation and new launches.

 

The company also clocked in its highest quarterly revenue from operations at ₹6,171 crore, up by 45 per cent supported by robust growth across both Royal Enfield and VE Commercial Vehicles (VECV).

 

During the quarter, Royal Enfield recorded its highest-ever quarterly motorcycle sales at 327,067 units, up by 45 per cent year-on-year.

 

Sequentially, the net profit increased by 13 per cent, and the revenue from operations was also up by 22 per cent in the second quarter of FY26.

 

During an audio press conference after the release of results, B Govindarajan, managing director (MD) of Eicher Motors & chief executive officer (CEO) of Royal Enfield, said, “We have witnessed the best-ever festival season, achieving record sales of 249,000 units. The Government of India’s GST reform has further enhanced accessibility for motorcycles under 350cc, as reflected in the strong customer demand.”

 

Vinod Aggarwal, MD & CEO of VECV and vice-chairman of Eicher Motors, said, “VECV delivered a solid performance in Q2FY26, registering our best-ever second quarter in terms of truck and bus deliveries. Eicher retained its position as the market leader in light and medium duty trucks. We continue to make steady progress in the heavy-duty trucks segment, recording our best-ever second quarter deliveries. GST rationalisation has had a positive impact on consumer confidence and consumption and will in-turn support demand for commercial vehicles in the coming period.” 

 

While the company believes that the recent GST reduction on motorcycles below 350cc has significantly boosted demand, the GST increase on models above 350cc has dampened momentum in that segment. This divergence could influence long-term portfolio strategy, with manufacturers likely to focus more on sub-350cc motorcycles in the domestic market if the current tax structure continues, said Govindarjan.

 

The company believes such a shift could limit India’s ability to build scale and maintain its global leadership in the 450cc and 650cc categories.

 

Govindarajan emphasised that a uniform GST rate of 18 per cent across all motorcycle segments would not only sustain demand but also encourage greater investment and research and development (R&D), enabling Indian two-wheeler makers to develop and export higher-capacity motorcycles competitively on the global stage.

 

He said that Eicher Motors, along with other two-wheeler manufacturers, is engaging with the government through industry body Siam to seek a uniform GST rate across all motorcycle categories.

 

“We are representing to the government agencies to have a lower GST for 450cc and 650cc models as well. This will help increase domestic numbers, achieve scale, and strengthen India’s position in global markets,” he explained.

 

Going ahead, Royal Enfield remains confident about sustaining its growth momentum. “Our festival demand continues to hold up even in November. Based on inquiries, bookings, and website interest, we are confident of growth in the next quarter,” Govindarajan said.

 

The results were announced during the market hours. Eicher’s stock marginally fell by 0.7 per cent, ending the day’s trade at ₹6,830.8 a piece on BSE.