Eicher Motors is doubling down on key international markets such as Brazil, even as it works to strengthen its global distribution and financing ecosystem to support the next leg of growth for Royal Enfield.
Speaking during the Q1 FY26 post-earnings call, the company’s management said it remains "cautiously optimistic" about overseas markets and is laying the groundwork for sustained expansion. Brazil, in particular, has emerged as a high-potential market for Royal Enfield, with its large two-wheeler customer base and improving macroeconomic environment.
"We see huge potential in Brazil. It’s a good two-wheeler market, and we’re putting the CKD (completely knocked down) infrastructure in place with two assembly partners already onboard,” the company said. Eicher is also working on localised financing options in the region to improve customer access. "We’re tying up with banks to ensure seamless financing, and our retail footprint is expanding steadily."
Beyond Brazil, Eicher reported mixed trends across international markets. The UK remains muted due to an overhang of pre-registered inventory, but mainland Europe is seeing improving momentum. “We’ve taken distribution into our own hands in Europe and are now fixing the operational back end, including floor funding,” the management said.
Australia continues to perform well, while Indonesia has also shown encouraging growth. However, the company acknowledged ongoing challenges in Thailand. In South Asia, Royal Enfield is seeing strong traction in Bangladesh and Nepal, with both CKD facilities operating at full capacity.
Read more: MC Insider | A peculiar disclosure, fund house's search for exit and a storm on Deal Street
“We’ve been investing time and resources to be ready for the next wave of demand. And now, as global markets begin to open up, we are positioned to ride that momentum,” the company said.
Royal Enfield-maker Eicher Motors on July 31 reported a 9 percent rise in consolidated net profit at Rs 1,205 crore for the quarter ended June 30, 2025.
The company's net profit stood at Rs 1,101 crore in the year-ago period. Eicher witnessed a 15 percent increase in revenue at Rs 5,042 crore in Q1 FY26 as compared to Rs 4,393 crore in Q1 FY25. The company's June quarter revenue was its best-ever Q1 revenue.
While earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 3 percent at Rs 1,203 crore in Q1 FY26 from Rs 1,165 crore in the same quarter of the previous fiscal, the operating margin declined by 266 basis points to 23.86 percent in the June quarter from 26.52 percent in the year-ago period.
Eicher Motors' share price closed at Rs 5,468, lower by 0.2 percent from the last close on the NSE. Eicher Motors shares have risen 13 percent since the beginning of the year.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
