Eicher Motors Q3 net profit rises 21% to Rs 1,421 crore

Eicher Motors Q3 Results

Eicher Motors on Monday reported a 21 per cent rise in consolidated net profit for the December quarter, aided by strong domestic sales of its Royal Enfield motorcycles.

The maker of the Himalayan 450 posted a net profit of Rs 1,421 crore for the quarter ended December, compared with Rs 1,171 crore in the year-ago period.

The company said the results included a one-time charge of Rs 55 crore related to new labour codes that came into effect in November.

Overall sales of Royal Enfield motorcycles rose 21 per cent during the quarter, driven by robust demand in the domestic market. Domestic sales increased 24 per cent year-on-year, led by models such as the Hunter 350 and Meteor 350. Revenue from operations grew 23 per cent to Rs 6,114 crore.

The quarter also saw a profit contribution from Eicher’s commercial vehicle joint venture with Volvo, which reported nearly 12 per cent growth on the back of higher truck sales.

The board also approved a proposal for capacity expansion at Royal Enfield, which will be achieved through a brownfield expansion at the Cheyyar manufacturing facility in Tamil Nadu, taking annual production capacity upto 20 lakh units from the existing 14.6 lakh units. The company is set to invest an estimated Rs 958 crore for the brownfield expansion.

In recent weeks, peers Bajaj Auto, TVS Motor and Hero MotoCorp have reported higher quarterly profits, although one-time labour code-related charges led to profit misses for TVS Motor and Hero MotoCorp.

Speaking on Royal Enfield’s performance, B. Govindarajan, Managing Director - Eicher Motors Ltd., and Chief Executive Officer - Royal Enfield said, "At Royal Enfield, we continued to see healthy demand across markets, alongside consistent progress in strengthening our product pipeline, capacity building, and engagement with the riding community. The quarter was also significant from a brand and strategy perspective, as we kickstarted celebrations for our historic 125-year milestone at EICMA 2025. With the unveiling of Bullet 650 and Flying Flea S6 and the launch of Himalayan Mana Black and Meteor 350 Sundowner, we showcased our legacy-powered yet innovative mindset."

"Subsequently, we continued acstrong on-ground expression of that journey at Motoverse in Goa, bringing together riders and partners to celebrate the Pure Motorcycling ethos that defines Royal Enfield. We also expanded our cultural footprint beyond motorcycling with the second edition of ‘Journeying Across the Himalayas’, which grew in scale and impact. Our performance over the quarter, particularly during the festive months, is the outcome of consistent efforts, with the GST rationalisation further improving accessibility in certain segments," he added.

Shares of Eicher Motors closed 1.32 per cent higher at Rs 7,290.50 apiece on the NSE.

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