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Informist, Monday, Feb. 9, 2026

 

By Anand JC

 

NEW DELHI – A strong increase in despatches of Eicher Motors Ltd.'s Royal Enfield motorcycles is expected to drive double-digit growth in the company's consolidated December quarter top line for a fifth consecutive quarter, according to brokerages. However, higher sales of two-wheelers with an engine capacity below 350 cubic centimetres are likely to weigh on the average selling price of its vehicles for the reporting quarter.

 

The company's consolidated net profit for the December quarter is expected to grow 18% on year to INR 13.8 billion, according to the average of estimates from 14 brokerages. The highest profit estimate for Eicher Motors is INR 16.11 billion by Elara Securities (India) Pvt. Ltd. and the lowest is INR 12.19 billion by ICICI Securities Ltd. If realised, the projected 18% year-on-year growth would be slower than the 25% year-on-year increase in the company's bottom line for the September quarter, but unchanged from the growth a year ago.

 

The consolidated revenue of Eicher Motors for the December quarter is projected to rise 21% on year to INR 60.34 billion, according to the average of estimates. This growth forecast is slightly higher than the 19% year-on-year increase in the company's top line a year ago but significantly softer than the 45% growth posted in the September quarter. The highest revenue estimate for the automotive manufacturer is INR 62.56 billion by Emkay Global Financial Services Ltd. and the lowest is INR 58.71 billion by HSBC Global Research.

 

The Chennai-based company makes motorcycles and commercial vehicles. It also sells commercial vehicles through its joint venture with Sweden-based automotive giant Volvo Group, called VE Commercial Vehicles Ltd. Eicher Motors also operates overseas through local partnerships and subsidiaries and the sale of completely knocked-down units. With four manufacturing units in India, Eicher Motors can manufacture 1.2 million motorcycles annually.

 

Eicher Motors sold 329,195  vehicles in the December quarter, up 21% on year. This includes 300,426 Royal Enfield motorcycles sold in India and 28,769 motorcycles sold overseas. Sales of these two-wheelers got a leg-up from the cut in the goods and services tax which took effect on Sept. 22.

 

Under the new regime, two-wheelers with an engine capacity of up to 350cc face GST of 18% while models above 350cc attract GST of 40%, which is meant for "demerit" goods. Only 1.5% of motorcycles sold in India attract the 40% tax. For Eicher Motors, motorcycles with an engine capacity of up to 350cc account for 87% of total sales.

 

For the December quarter, Eicher Motors is likely to have sold a higher number of motorcycles with an engine capacity below 350cc, which are cheaper. Analysts expect this to cap the growth in average realisation per vehicle for the reporting quarter, though only mildly. The average selling price of Royal Enfield motorcycles in the December quarter is expected to be INR 181,000, up half a percent on year, Motilal Oswal Financial Services Ltd. said.

 

While domestic sales of Royal Enfield motorcycles grew 3% on year in the December quarter, their exports fell 5% on year. Analysts say exports came under pressure due to weaker sales in the US and Mexico. This fall in exports contrasts sharply with the performance in the first six months of the financial year 2025-26 (Apr-Mar) when the company exported 78,548 units, up 49% on year. In Latin America, particularly in Argentina and Colombia, the company's motorcycles sold well, Eicher Motors Managing Director and Royal Enfield's Chief Executive Officer B. Govindarajan had told analysts in a post-earnings conference call in November.

 

Eicher Motors is expected to report consolidated earnings before interest, tax, depreciation, and amortisation of INR 14.96 billion for the December quarter, according to the average of estimates from 13 brokerages. The highest EBITDA estimate is INR 15.42 billion by JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 14.62 billion by Prabhudas Lilladher Pvt. Ltd. Analysts expect the company's EBITDA margin to benefit from operating leverage in the December quarter, but any gain will be capped by inflation in input costs, increased sales of lower margin vehicles, and higher marketing expenses.

 

The company will disclose its results Tuesday. Monday, shares of Eicher Motors closed at INR 7,195.50 on the National Stock Exchange. The stock is up roughly 5% since the company reported its September quarter results.

 

Of the 12 research recommendations on Eicher Motors available with Informist, six have a "buy" recommendation on the stock while four have a "hold" call and two have a "sell" recommendation. The average target price of the "buy" recommendations is INR 7,853 and that of the "sell" calls is INR 6,298. The average target price of the "buy" recommendations is roughly 9% higher than the stock's current market price while that of the "sell" recommendations is 12% lower.

 

Following are the Oct-Dec earnings estimates, in INR billion, for Eicher Motors from 14 brokerages in descending order of the net profit estimate:

 

Brokerage	Net sales	Net profit	EBITDA
Elara Securities (India) Pvt. Ltd.	60.11	16.11	14.88
Nomura Equity Research	61.45	14.63	15.35
Kotak Securities Ltd.	61.03	14.46	14.99
JM Financial Institutional Securities Pvt. Ltd.	61.94	14.43	15.42
Emkay Global Financial Services Ltd.	62.56	14.34	15.39
Nuvama Wealth Management Ltd.	60.31	14.16	15.08
Nirmal Bang Equities Pvt. Ltd.	60.04	13.90	14.73
Motilal Oswal Financial Services Ltd.	60.25	13.89	14.78
Prabhudas Lilladher Pvt Ltd.	59.68	13.74	14.62
SMIFS Ltd.	60.05	13.52	15.03
YES Securities (India) Ltd.	60.54	13.43	14.79
HSBC Global Research	58.71	12.59	14.68
HDFC Securities Ltd.	59.21	12.38
ICICI Securities Ltd.	58.94	12.19	14.73
Average	60.34	13.84	14.96

 

End

 

Edited by Rajeev Pai

 

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