Eicher Motors reported strong consolidated results for Q3 FY’26 (period ended December 31, 2025), with revenue reaching INR 6,114 crores, a 23% growth year-over-year. EBITDA grew by 30% to INR 1,557 crores, and PAT stood at INR 1,421 crores (up 21%). Royal Enfield achieved robust volume growth, crossing the 1 million motorcycles year-to-date milestone, and the company announced a significant capacity expansion to 2 million units annually.
Consolidated Financial Highlights for Q3 FY’26
Eicher Motors Limited (EML) announced robust consolidated financials for the third quarter of FY 25-26, covering the period ended December 31st, 2025. Total revenue reached approximately INR 6,114 crores, reflecting a substantial 23% growth over the INR 4,973 crores reported in Q3 last year. EBITDA saw a strong rise of 30% year-over-year, standing at about INR 1,557 crores, compared to INR 1,201 crores previously. Profit After Tax (PAT) grew by 21% to INR 1,421 crores, which includes VECV profits of about INR 183 crores.
Royal Enfield Segment Performance
The quarter was marked by a significant milestone for Royal Enfield, crossing the 1 million motorcycles year-to-date, well before the fiscal year’s close. Total motorcycle sales for the quarter stood at 3,25,773 units, marking a 21% growth over Q3 FY 2025 volumes. Domestic sales showed exceptional strength, growing by 24% to about 3,00,426 motorcycles, with the company maintaining dominance in the mid-sized segment at an 88.9% exit market share.
International market volumes for Royal Enfield were approximately 25,347 units, slightly down from 27,068 units last year, though retail momentum remains strong in key markets like Brazil, Argentina, and Thailand. The company celebrated its 125th year milestone, launching new products, including the Meteor 350 Sundowner Special Edition, and expanding its cultural footprint through events like Motoverse, which hosted over 40,000 people.
Capacity Expansion and Future Outlook
In line with demand, the EML Board approved a proposal for capacity expansion at the Cheyyar manufacturing facility in Tamil Nadu. This brownfield expansion aims to increase annual production capacity from the current 1.4 million units to 2 million units per year over an 8-quarter period, starting immediately, to cater to future demand.
VECV Segment Update
VECV delivered a constructive performance supported by stable financing and infrastructure push. Q3 revenues were INR 7,019 crores (up from INR 5,801 crores), and the EBITDA margin improved to 9.5% from 9.2% last year, with PAT at INR 338 crores. Management noted that VECV has two well-industrialized truck plants in Pithampur and Bhopal, and while capacity is sufficient for the current year, further increases may be considered next year if industry growth continues.
Management Commentary on Margins and Pricing
Management highlighted that margin improvement was driven by sustained volume growth, operating leverage, and fiscal discipline on expenses, including marketing spend timing. Regarding pricing, a blended model price increase of about 0.5% was implemented in January on select models, following approximately 140 basis points of increases implemented in April and July of the previous year.
Electric Mobility Roadmap
Royal Enfield plans a cautious approach to its electric mobility portfolio under the endorsed brand Flying Flea. The C6 (Classic style) is nearing production readiness for market launch soon, while the S6 (Scrambler version) is tentatively planned for release around the EICMA time later in the year.
Source: BSE
