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Informist, Tuesday, Feb. 10, 2026

By Pallavi Singhal and Sunil Raghu

NEW DELHI/AHMEDABAD – Eicher Motors is confident that the growth momentum seen in recent quarters will carry into the March quarter, helped by strong enquiries, improving conversions, and healthy bookings, the company's management said during its post-earnings call with analysts Tuesday. 

"Enquiries are better, conversions are better, bookings are good. So, in Q4 (Jan-Mar), we are positive that we will be growing more," the company's management said, adding it expects to continue outperforming the broader premium motorcycle market. What underpinned this confidence, the management said, was improving traction across product categories, including higher-capacity motorcycles, along with sustained demand for its core models.

Management explained that demand for motorcycles above 350 cc had seen a sharp drop after the goods and services tax was cut for bikes up to 350 cc, while the tax rate for 450 cc and 650 cc motorcycles remained unchanged at 40%. "Post the GST change, there was a huge drop in more-than-350 cc motorcycles, because the benefit was only for 350 cc," the management said, adding that this created a near-term demand shift towards lower-capacity models.

The company, however, said the recovery trend in higher-capacity motorcycles is now becoming visible. "The rate of recovery of 650 cc has started showing positive signs, and 450 cc is following that," the management told analysts, adding that enquiries and conversions have improved even though volumes are yet to return to pre-GST cut levels. The management attributed the recovery to recent launches such as the Classic 650 and Bullet 650, product refreshes, riding events, and targeted customer engagement initiatives, which helped revive interest in the segment.

On the supply side, Eicher Motors said it was running its manufacturing plants at a near-full utilisation to meet demand. "The plant is running almost 24X7 and it's in full capacity," the management said, adding that the company is currently delivering around 4,300–4,400 vehicles per day. It said vendor partners have been engaged to ramp up capacities in line with production needs as demand remains strong across markets.

On margins, the management said higher input costs, including commodities such as aluminium, copper and precious metals, have been largely offset through calibrated pricing actions and internal efficiencies. "Commodity inflation has been offset to some extent through pricing increases, model mix, and value engineering," the management said, noting that price hikes were taken in April, July, and again in January on select models to deal with the rise in input costs. They added that pricing actions have been cautious and case-specific, aimed at protecting margins without hurting demand.

On exports, the management said the weighted tariff to the US currently stands at around 41–42%. While recent trade developments indicate a base tariff of about 18%, the company said there is still no clarity on steel and aluminium tariffs which when added, are amounting to this higher number. "We are waiting for more clarity on the fine print," the management said, adding that a reduction in the effective tariff would improve market access for its products in the US. 

According to the management, commodity costs remain a watchpoint, though pressures are currently stable rather than intensifying. "On the extent of commodities, it is not cooling off, but it is also not heating up," the management said, adding that while pressure is likely to persist for some more time, the company is mitigating the impact through continuous value-engineering initiatives. The management said selective pricing actions, along with cost optimisation and model mix benefits, are helping cushion margins, even as it remains cautious about taking aggressive price hikes in a growth-focused environment.

Looking ahead, Eicher Motors said sustained demand gives it confidence to plan for additional capacity, and it may consider expanding capacity at its Bhopal unit next year if growth continues. The management reiterated that any capacity addition would be in phases and closely aligned with demand trend.

Eicher Motors disclosed its December quarter earnings after the market closed. The net profit of Eicher Motors for the December quarter was INR 14.21 billion, up 21% on year and nearly 4% on quarter. Its consolidated top line for the quarter was INR 61.14 billion, up 23% on year and down almost a percent on quarter. Tuesday, its shares closed 1.4% higher on the National Stock Exchange at INR 7,296.  End

Edited by Akul Nishant Akhoury

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