Eicher Motors PAT up 21% in Q3 riding on rise in Royal Enfield sales

Eicher Motors reported a 21 per cent rise in net profit in the December quarter, driven by strong Royal Enfield sales and improved performance at VE Commercial Vehicles

Eicher Motors (EML), the maker of Royal Enfield motorcycles, posted a 21 per cent rise in net profit in the third quarter of the current financial year to Rs 1,421 crore, compared with Rs 1,171 crore in the October–December quarter of FY25, driven by a rise in sales.

 

For Q3 FY26, EML reported revenue from operations of Rs 6,114 crore, a growth of 23 per cent from the corresponding quarter of FY25. Earnings before interest, tax, depreciation and amortisation (Ebitda) grew 30 per cent to a record Rs 1,557 crore during the period under review.

 

B Govindarajan, managing director, Eicher Motors Ltd, and chief executive officer, Royal Enfield, said, “This quarter continues the steady momentum that we have built over the previous six quarters and disciplined execution across Eicher Motors, with encouraging performance from both Royal Enfield and VECV. At Royal Enfield, we continued to see healthy demand across markets, alongside consistent progress in strengthening our product pipeline, capacity building, and engagement with the riding community.”

 

 

Royal Enfield recorded quarterly sales of 325,773 motorcycles, up 21 per cent from 269,039 motorcycles sold during Q3 FY25. VE Commercial Vehicles (VECV) recorded sales of 26,086 vehicles in the third quarter, up from 21,010 vehicles in the year-ago period.

 

EML’s board also approved a proposal for capacity expansion at Royal Enfield, which will be achieved through a brownfield expansion at the Cheyyar manufacturing facility in Tamil Nadu, taking annual production capacity to 2 million units from the existing 1.46 million units. The company is set to invest an estimated Rs 958 crore in the brownfield expansion.

 

VECV’s revenue from operations in Q3 FY26 stood at Rs 7,019 crore, up 21 per cent from Rs 5,801 crore. Ebitda for the third quarter rose 26 per cent to Rs 652 crore, from Rs 517 crore a year ago. Profit after tax stood at Rs 338 crore, compared with Rs 299 crore last year.

 

“The third quarter was marked by a strong recovery in the commercial vehicle industry following a prolonged monsoon. GST reforms, coinciding with the traditional festive buying season, helped revive consumer sentiment and consumption-led demand for transportation. VECV delivered its best-ever third-quarter performance, with sales of 26,086 vehicles, representing a growth of 24.2 per cent over the corresponding period last year. We sustained our industry leadership in the LMD truck segment (5–18T GVW) while also recording growth across buses and heavy-duty truck segments,” said Vinod Aggarwal, managing director and chief executive officer, VECV, and vice-chairman, Eicher Motors.