Earnings Outlook
Strong Royal Enfield sales to drive Eicher Motors revenues
This story was originally published at 13:17 IST on 30 July 2025
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By Anand JC
NEW DELHI – Eicher Motors Ltd. is expected to post a double-digit growth in consolidated revenue for the third straight quarter in Apr–Jun, primarily driven by robust wholesale sales of its Royal Enfield motorcycles. However, higher raw material prices and negative operating leverage are expected to weigh on its margin, analysts said.
Eicher Motors' consolidated net profit is expected to grow 3% on year to INR 11.4 billion for the reporting quarter, according to the average of nine brokerages' estimates. This would be the weakest on-year profit growth since the 14% fall the company had reported in the December quarter of 2021-2022 (Apr-Mar). Nomura Equity Research' expectation of INR 12.9 billion net profit is the highest while Motilal Oswal Financial Services' view of INR 9.4 billion is the lowest.
The revenue for the latest quarter is expected to be INR 49.8 billion, according to consensus estimates. This would translate to a 13% on-year growth but a sequential decline of 5%. Estimates for the company's top line are in a tight range, with the lowest forecast being INR 48.1 billion and highest being INR 50.9 billion.
Eicher Motors's revenue growth is expected to be driven by a 17% on-year increase in the wholesale sales of Royal Enfield motorcycles. The company also sells commercial vehicles through VE Commercial Vehicles, its joint venture with Volvo group. However, the latter forms only around 7% of its overall automobile sales.
Eicher Motors sold 228,779 motorcycles to dealerships in India in the June quarter, up nearly 12% on year. Its exports grew at a faster 65% to 36,749 units.
Kotak Institutional Equities has projected a 13% on-year revenue growth for Eicher Motors, driven by strong sales performance. However, this gain is expected to be partially offset by a 2.5% decline in the average selling price compared with the previous year.
Eicher Motors likely earned INR 183,000 for every bike sold during the quarter, down 2% on year, according to Motilal Oswal. This fall is bigger than the 0.4% decline in the year-ago quarter and the 1.9% decline in the March quarter, the brokerage said.
The Bullet maker's earnings before interest, tax, depreciation, and amortisation for the latest quarter are expected to be INR 12 billion, according to the average of eight brokerages' estimates. This would be nearly 3% higher than the INR 11.7 billion EBITDA recorded in the year-ago quarter.
Motilal Oswal estimates EBITDA at INR 11.7 billion, marking the lowest projection among analysts while InCred Research Services forecasts EBITDA the highest at INR 12.4 billion.
Analysts expect Eicher Motors' EBITDA margin to contract sequentially and on year due to higher raw material cost, negative operating leverage, and higher branding and marketing spends. Its EBITDA margin for the year-ago quarter was 26.5% and for the March quarter was 24%. Eicher Motors' EBITDA margin may contract 290 basis points on year for the June quarter due to higher steel prices, emission norms-led price hikes, higher launch cost of the Hunter 350, and low-margin offerings in India.
The company will disclose its June quarter financials Thursday. At 1241 IST on Wednesday, shares of Eicher Motors were 1.1% higher at INR 5,529 on the National Stock Exchange. Since the company reported its March quarter earnings, its shares have gained roughly 2%.
Of the 19 brokerage recommendations for the company available with Informist, 12 have a 'buy' call with an average price of INR 5,688 per share. Four brokerages have a 'hold' call and three have a 'sell' call.
Following are the Apr-Jun consolidated earnings estimates for Eicher Motors Ltd. based on reports from nine brokerage firms in descending order on the estimate of net profit:
| Brokerage | Net sales (in INR mln) | Net profit (in INR mln) | EBITDA (in INR mln) |
| Nomura Equity Research | 50,409.00 | 12,912.00 | 11,948.00 |
| JM Financial Institutional Securities Pvt Ltd | 49,944.00 | 12,221.00 | 12,037.00 |
| InCred Research Services Pvt Ltd | 50,861.00 | 12,112.00 | 12,365.00 |
| Nuvama Wealth Management Ltd | 49,942.00 | 11,813.00 | 12,001.00 |
| Kotak Institutional Equities | 49,623.00 | 11,635.00 | 11,998.00 |
| YES Securities (India) Ltd | 49,862.00 | 11,504.00 | 11,965.00 |
| Nirmal Bang Equities Pvt Ltd | 49,514.00 | 10,502.00 | 12,329.00 |
| HDFC Securities Ltd | 48,122.00 | 10,220.00 | |
| Motilal Oswal Financial Services Ltd | 49,657.00 | 9,415.00 | 11,684.00 |
| Average | 49,770.44 | 11,370.44 | 12,040.88 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subhojit Sarkar
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