More Stories

Informist, Monday, Jul. 27, 2026

 

By Anand JC

 

MUMBAI – Eicher Motors Ltd. is projected to report a healthy year-on-year increase in its consolidated revenue and profit for the June quarter on the back of a robust growth in the wholesale sales of its Royal Enfield motorcycles and price hikes taken by the company, analysts said. Its revenue growth and the average selling price of its vehicles would've been higher, but for the fall in despatches of its motorcycles overseas and motorcycles with an engine capacity exceeding 350 cubic centimetres, analysts said.

 

Eicher Motors' consolidated net profit is forecast to grow almost 15% on year but fall a little over 9% on quarter to INR 13.80 billion, according to the average of 15 estimates. Forecasts for the automaker's bottom line range between a low of INR 12.39 billion by HDFC Securities Ltd. to a high of INR 15.00 billion by Nirmal Bang Equities Pvt. Ltd.

 

The company is expected to report a consolidated revenue of INR 63.63 billion for the June quarter, which would imply an on-year growth of 26% and a sequential improvement of nearly 5%, according to the average of estimates. The highest forecast for Eicher Motors' top line is INR 65.77 billion by BofA Securities, and the lowest is INR 61.61 billion by ICICI Securities Ltd.

 

Eicher Motors earns all of its standalone revenue from sales of its Royal Enfield motorcycles. Additionally, it also operates a 50:50 joint venture, VE Commercial Vehicles, with Swedish automobile giant Volvo Group. In the March quarter, non-motorcycle revenue had contributed only around 16% to the company's total revenue.

 

In the quarter under review, the company sold 330,427 motorcycles to dealerships in India and overseas, up 24% on year. Models with an engine capacity below 350cc accounted for almost 90% of its sales in this period, and reported sales growth of 30% on year. Motorcycles with engines over 350cc saw sales fall 6% on year, primarily because they are taxed at the highest slab under the new goods and services tax rates.

 

"Royal Enfield volumes have been consistently growing in double digits with a strong product portfolio, model refreshes and investments in strengthening the brand," Prabhudas Lilladher said. "It is operating at peak utilisation and the management has announced capacity expansion plans to meet the strong demand in sub-350cc segment," it said. The company is investing INR 9.58 billion to expand its plant in Tamil Nadu, which will take its annual installed capacity to 2 million units by financial year 2027-28 (Apr-Mar) from 1.4 million currently. 

 

Exports of its motorcycles fell 20% on year to 29,253 units in the June quarter. Exports, which accounted for less than 10% of its overall sales, declined due to weak demand in some of its key markets. Analysts expect the average selling price of Royal Enfield motorcycles for the June quarter to grow between 0.5% and 4.0% on year due to price hikes taken by the company to offset rising prices of raw materials. Eicher Motors hiked prices of its motorcycles by up to 2% from Apr. 1.  

 

VE Commercial Vehicles sold 24,815 units in the reporting quarter, up almost 15% on year. "Realisation will increase by about 2% QoQ to INR 2.41 million due to the combination of price increase and mix improvement," PhillipCapital (India) Pvt. Ltd. said.

 

Eicher Motors' consolidated earnings before interest, tax, depreciation and amortisation for the June quarter are expected to rise 27% on year to INR 15.29 billion, according to the average of 13 estimates. The highest estimate for its consolidated EBITDA is INR 15.67 billion by BofA Securities and the lowest is INR 14.81 billion by PhillipCapital.

 

"EBITDA margin is expected to remain broadly flat YoY but moderate sequentially due to elevated commodity costs, partly offset by operating leverage and pricing actions," Nirmal Bang said. Eicher Motors had reported an EBITDA margin of 25.1% in the year-ago quarter and 25.8% in the March quarter.

 

Eicher Motors will detail its June quarter earnings on Wednesday. Monday, shares of the company ended at INR 7,769.50 on the National Stock Exchange, up 1.9%. The shares are up roughly 8% since the company reported its March quarter results on May 22.

 

Out of the 15 brokerage reports on the company available with Informist, nine have a ‘buy' or equivalent recommendation on the stock with an average target price of INR 8,332. This is nearly 8% higher than the current market price. Five brokerages have a ‘hold' or equivalent recommendation on the stock with an average target price of INR 7,611. One brokerage has a ‘sell' or equivalent recommendation.

 

The following are the June quarter earnings estimates for Eicher Motors from 15 brokerages in descending order of the estimate of net profit in INR billion:

 

Brokerages	Net sales	Net profit	EBITDA
Nirmal Bang Equities Pvt Ltd.	63.86	15.00	15.62
ICICI Securities Ltd.	61.61	14.88	15.28
Elara Securities (India) Pvt Ltd.	63.85	14.21	15.26
Motilal Oswal Financial Services Ltd.	63.37	14.20	14.84
Kotak Securities Ltd.	64.43	14.19	15.47
Prabhudas Lilladher Pvt Ltd.	64.32	14.07	15.31
SMIFS Ltd.	63.06	13.74	15.17
JM Financial Institutional Securities Pvt Ltd.	64.00	13.73	15.27
PhillipCapital (India) Pvt Ltd.	63.74	13.73	14.81
360 ONE Capital Market Pvt Ltd.	63.39	13.68	N.A.
Nuvama Wealth Management Ltd.	63.76	13.68	15.22
Nomura Equity Research	63.17	13.58	15.54
YES Securities (India) Ltd	64.23	13.47	15.28
BofA Securities	65.77	12.47	15.67
HDFC Securities Ltd.	61.84	12.39	N.A.
Average	63.63	13.80	15.29

 

End

 

Edited by Himanshi Gupta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.