Royal Enfield eyes stronger global ride, upbeat on domestic demand recovery

Eicher Motors' stock has rallied 12 percent since the start of the year.

Eicher Motors, the maker of Royal Enfield motorcycles, is confident of accelerating growth both in India and overseas, riding on product pipeline, premiumisation trends and sustained brand-building efforts.

The company, which recently crossed the selling of one million motorcycles in a year — a tenfold jump from about 100,000 units a decade ago — is betting on the middleweight segment to fuel its expansion. It holds an 88 percent market share in this category in India and continues to double down on it with upcoming launches and refreshes lined up through the year.

“Premiumisation is continuing,” the management said in a post-earnings call, adding that marketing investments and activations are helping grow the segment. The company expects domestic momentum to remain healthy, especially with signs of a revival in urban markets thanks to income tax cuts, while rural demand continues to be strong.

Internationally, Eicher Motors is cautiously optimistic. Royal Enfield is already the number one midweight brand in the UK, number two in Argentina and number three in Brazil — where it recently launched the new Himalayan after a long homologation cycle. Bangladesh, a new entrant to its global footprint, is also showing promise.

Though global sentiment remains mixed, the company said retail traction and interest in products remain strong. To counter tariff headwinds, especially in the US, it has pre-stocked inventory for the peak riding season at pre-tariff prices and continues to export

The company on May 14 reported a net profit of Rs 1,362 crore for the fourth quarter of FY25, marking a rise of nearly 27 percent from the Rs 1,070 crore net profit reported in Q4 FY24. The firm's revenue from operations meanwhile, rose 23 percent on-year to Rs 5,150 crore.

Notably, the company has reported a higher jump in net profit than the 20.6 percent surge estimated on an average by brokerages polled by Moneycontrol. Its revenue from operations is also higher than the MC poll estimate of Rs 5,072 crore.

Along with the Q4 results, the company announced a final dividend of Rs 70 per equity share. The record date to determine the eligibility of the shareholders set to receive the payment is yet to be announced.

Shares of the company closed at Rs 5,447, higher by 0.5 percent from the last close on the NSE. Eicher Motors' stock has rallied 12 percent since the start of the year.

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