Eicher Motors Posts Steady Growth in Q1 FY26, Backed by Royal Enfield and VECV

Key Highlights:

• Net profit rose 9.4% YoY to ₹1,205.22 crore.
• Total revenue from operations up 14.8% to ₹5,041.8 crore.
• Royal Enfield sold 261,326 bikes; exports surged 65%.
• EBITDA margin slipped to 23.8% from 26.5% due to cost pressure.
• VECV revenue grew 11.9%; EBITDA jumped 32.6%; PAT fell 10%.

​Eicher Motorsstarted the first quarter of FY26 on a positive note, thanks to strong results from both Royal Enfield and VE Commercial Vehicles (VECV). The company earned a total profit of ₹1,205.22 crore, which is 9.4% more than the ₹1,101.46 crore it made in the same quarter last year.

Revenue Growth Led by Motorcycle and Commercial Vehicle Sales

Eicher Motors earned ₹5,041.8 crore from its main business between April and June, representing a 14.8% increase from ₹4,393.1 crore in the same quarter last year. When other income is added, the total income went up to ₹5,487.9 crore, compared to ₹4,675 crore a year earlier.

Royal Enfield Drives Domestic and International Momentum

Royal Enfield continued its upward trajectory with 261,326 motorcycles sold during the quarter, 14.7% more than last year’s 227,736 units. The brand’s international sales were a standout, climbing 65% year-on-year to 36,749 units.

B Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, highlighted the company’s efforts to expand globally and build community engagement. “The Hunter 350 has been a big success. We’ve also expanded in the SAARC region and launched the locally assembled Classic 350 in Nepal,” he said.

Profit Under Pressure Despite Strong Top-Line Numbers

While revenue showed healthy growth, Eicher's operating performance faced some headwinds. EBITDA (earnings before interest, taxes, depreciation, and amortization) rose modestly by 3.1% to ₹1,202.8 crore, compared to ₹1,165 crore in the same quarter last year.

Even though profits grew, Eicher’s EBITDA margin dropped to 23.8% from 26.5%, showing that raw material and running costs went up. The company’s total spending rose by 18.9% to ₹4,052.02 crore, mainly because of higher input and staff costs. Taxes also went up slightly to ₹387.77 crore, compared to ₹339.58 crore in the same period last year.

VE Commercial Vehicles Records Strong Growth with Mixed Results

Eicher’s truck and bus division, VE Commercial Vehicles (VECV), also did well this quarter. It sold 21,610 vehicles, which is more than the 19,702 units sold last year. Its revenue went up by 11.9% to ₹5,671 crore, and profit before expenses (EBITDA) jumped 32.6% to ₹511 crore.

Despite this, net profit for VECV dipped 10% year-on-year to ₹157.11 crore. According to Vinod Aggarwal, MD & CEO of VECV and Vice Chairman of Eicher Motors, this was due to a one-time deferred tax reversal benefit recorded in Q1 FY25. “Still, we achieved margin expansion through better volumes, pricing, and cost control,” he added.

Also Read: VECV Sales Report June 2025: 5,449 Units Sold; Sales Grew by 1.7%

CMV360 Says

With robust domestic sales, aggressive international expansion, and a strong order pipeline for commercial vehicles, Eicher Motors appears well-positioned to maintain momentum in the coming quarters. However, the dip in margins suggests that managing costs will be a key focus area from now on.