Eicher Motors (EICHERMOT) Q2 25/26 earnings summary

Executive summary

• Achieved record consolidated revenue of ₹6,172 crore in Q2 FY26, up 45% year-over-year, and highest-ever EBITDA of ₹1,512 crore, up 39% year-over-year.

• Royal Enfield maintained 84% market share in the mid-size motorcycle segment, with Q2 sales of 327,067 units, up from 225,317 last year.

• Strong festive season demand, robust bookings, and sustained consumer confidence drove growth across Royal Enfield and VECV.

• International business and allied business segments showed robust revenue growth, with international revenue reaching ₹2,546 crore and allied business revenue at ₹2,750 crore in FY25.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2025-26 were approved and published following board and audit committee review.

Financial highlights

• Consolidated net profit reached ₹1,369 crore, including ₹135 crore share of VECV profits, up 24.5% year-over-year.

• VECV Q2 FY26 revenue grew 10.2% YoY to ₹6,106 crore, with EBITDA margin at 8% and PAT at ₹249 crore.

• Standalone Q2 revenue from operations: ₹5,902.07 crore, up from ₹4,205.44 crore in Q2 last year; H1 revenue: ₹10,810.48 crore.

• Consolidated Q2 net profit: ₹1,369.45 crore, up from ₹1,100.33 crore in Q2 last year; H1 net profit: ₹2,574.67 crore.

• Basic EPS (consolidated) for Q2: ₹49.93; H1: ₹93.88.

Outlook and guidance

• Management remains bullish on continued growth, citing strong demand post-GST reduction and positive run rates into November.

• Second half expected to see better growth, especially in commercial vehicles, as infrastructure investments and GST rationalization drive demand.

• Continued focus on balancing growth and profitability, with strategic investments in both ICE and EV platforms.

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

• Extended Producer Responsibility (EPR) obligations under new ELV rules are not yet estimable due to lack of regulatory framework.