Eicher Motors (EICHERMOT) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 began with strong volume and financial growth, with Royal Enfield selling 261,326 motorcycles (+14.7% YoY) and VECV achieving record quarterly sales of 21,610 units.

• Consolidated Q1 revenue reached INR 5,042 crore, up from INR 4,393 crore YoY, and PAT increased to INR 1,205.22 crore from INR 1,101.46 crore.

• Royal Enfield maintained 87.3% market share in the middleweight segment and expanded internationally, especially in Brazil, Europe, and SAARC countries.

• ESG progress included 84% renewable electricity usage and a 51% reduction in emission intensity YoY.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with unmodified auditor review reports.

Financial highlights

• Consolidated Q1 revenue: INR 5,041.84 crore (up from INR 4,393.05 crore YoY); standalone revenue: INR 4,908.41 crore (up from INR 4,231.28 crore YoY).

• Consolidated EBITDA: INR 1,203 crore (margin 23.9%), up from INR 1,101 crore; PAT: INR 1,205.22 crore (up from INR 1,101.46 crore).

• VECV Q1 revenue: INR 5,671 crore (vs. INR 5,070 crore last year), EBITDA: INR 511 crore (+53% YoY), EBITDA margin: 9%.

• Basic EPS (consolidated): ₹43.95 vs ₹40.21 in Q1 FY25; standalone EPS: ₹47.65 vs ₹39.72.

• Dividend of INR 70/share proposed for FY25, totaling INR 1,919.15 crore, subject to approval.

Outlook and guidance

• Management remains optimistic for the festive season, with new product launches and marketing activations planned.

• Strategic focus on balancing ICE and EV product lines, growth, profitability, and sustainability.

• Plans to drive service business 6X by FY30 and expand digital/connected solutions.

• Unable to estimate obligations under new End-of-Life Vehicles (ELV) Rules, 2025, due to lack of operational framework.

• Focus remains on growth over margin, with continued investments in marketing and accessible pricing.