Eicher Motors Q3 Preview: Net profit may rise 28% on sharp volume, export growth

Eicher Motors share price has risen nearly 5 percent in the last month.

Delhi-headquartered Eicher Motors Limited is set to release its earnings report for the third fiscal quarter of FY25 on February 10. Analysts expect strong revenue growth driven by sharp volumes and export business uptick. Margins, however, could face pressure due to high marketing efforts.

According to a Moneycontrol poll of eight brokerage firms, the Royal Enfield maker is anticipated to record a 24.17 percent year-on-year increase in revenue to Rs 5,034 crore. Net profit is projected to rise 28.6 percent to Rs 1,176 crore from Rs 914 crore in the same quarter of the previous fiscal year.

Follow our LIVE blog for all the latest market updates

Earnings estimates from analysts polled by Moneycontrol are in a narrow range, indicating that any positive or negative surprises could trigger a sharp reaction in the stock price.

Analysts suggest revenue growth and net profit could witness a sharp uptick while margins could contract amid higher marketing spend.

EBITDA Contraction: EBITDA margins are expected to decline marginally year-on-year, primarily weighed down by higher marketing spend. As per average estimates, the EBITDA margin is expected to contract 40 basis points to 25.7 percent from 26.1 percent reported in the same period last year.

Also read: Investors to see 9 new IPOs, 6 listings next week

Strong Volume Growth: The company has sold 2,72,297 units in the third quarter, reflecting a massive 19.4 percent increase from 2,28,073 units sold in the corresponding quarter of the previous fiscal. Furthermore, Axis Securities said in a note that exports could witness a 100 percent on-year growth.

Robust Revenue: Strong growth in the domestic market, along with a sequential pickup in both domestic and export segments, is expected to drive standalone revenue. Additionally, higher average selling prices (ASPs), supported by price hikes over the past year, are expected to further boost revenue.

Read more: MC Explains: Banks facing liquidity challenges – but what exactly are these and what is the RBI doing about it

Key aspects to watch include the demand outlook for existing models and the timeline for upcoming launches. Insights into new product rollouts will be crucial, along with updates on Royal Enfield deliveries, which could offer a clearer picture of market traction and future growth.

Eicher Motors shares closed at Rs 5,392 higher by 0.93 percent from the last close on the NSE. Eicher Motors' share price has risen nearly 5 percent in the last month.

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.