Eicher Motors Q3 Results: Net Profit Jumps 17.5% to ₹1,170.5 Crore, Marginally Misses Estimates
Eicher Motors Ltd, the parent company of Royal Enfield and VE Commercial Vehicles (VECV), reported a strong financial performance for the third quarter of FY25, with double-digit growth in net profit, revenue, and EBITDA. Despite a minor miss on analyst estimates, the company’s continued momentum in both the two-wheeler and commercial vehicle segments highlights its resilience in an evolving market.
Q3 Performance Overview
For the October-December quarter of FY25, Eicher Motors posted a net profit of ₹1,170.5 crore, marking a 17.5% year-on-year (YoY) growth. However, this figure fell slightly short of analysts’ expectations.
The company’s revenue from operations rose by 19% YoY to ₹4,973.1 crore, reflecting increased demand for its motorcycles and commercial vehicles. EBITDA (earnings before interest, tax, depreciation, and amortization) also witnessed a 10% growth to ₹1,201 crore, showcasing strong operational efficiency despite market headwinds.
On the stock market, Eicher Motors’ shares ended 0.69% lower at ₹5,335.35 on the NSE, ahead of its Q3 earnings announcement.
Record Sales at Royal Enfield
Royal Enfield continued its upward trajectory, reporting its highest-ever quarterly sales of 2,69,039 motorcycles, reflecting a 17% growth from a year ago. The company attributed this surge to strong demand, new product launches, and a robust festive season performance.
Siddhartha Lal, Managing Director of Eicher Motors, expressed optimism about the brand’s future, stating,
“With a strong and diverse product portfolio, we are well on track to meet the evolving needs of riders across the world.”
Adding to its global expansion strategy, Royal Enfield opened its first fully owned CKD (Completely Knocked Down) facility in Thailand, strengthening its presence in the Asia-Pacific region. The Hunter 350, one of Royal Enfield’s best-selling models, also crossed a milestone of 5 lakh units in sales.
Commercial Vehicles Business Strengthens Market Share
Eicher Motors’ commercial vehicle division, VE Commercial Vehicles (VECV), delivered its best-ever Q3 performance, registering a 6% increase in revenue to ₹5,801 crore. EBITDA for VECV grew by 16% to ₹509 crore, while net profit surged 44% to ₹301 crore.
Despite a sluggish commercial vehicle market, VECV managed to strengthen its market share across various segments. Vinod Aggarwal, MD and CEO of VECV, highlighted the company’s strategic growth, stating,
“Even as the commercial vehicle industry remained sluggish, VECV strengthened its market share across segments.”
Expansion in Electric Mobility
Eicher Motors is also making strides in the electric mobility space. The company launched its electric vehicle brand, Flying Flea, marking its entry into the growing EV market. In collaboration with Qualcomm Technologies, Eicher aims to integrate advanced connectivity features, including real-time diagnostics, navigation, and personalized ride settings, into its upcoming electric motorcycles.
Key Financial Ratios & Market Data
Below is a snapshot of Eicher Motors’ key financial metrics for Q3 FY25:
| Metric | Value |
|---|---|
| Market Cap | ₹1,46,259 Cr. |
| Current Price | ₹5,335 |
| 52-Week High / Low | ₹5,576 / ₹3,672 |
| Stock P/E | 32.9 |
| Book Value | ₹692 |
| Dividend Yield | 0.96% |
| ROCE (Return on Capital Employed) | 31.1% |
| ROE (Return on Equity) | 24.2% |
| Debt to Equity | 0.02 |
| Industry PE | 47.2 |
| Debt | ₹404 Cr. |
| PEG Ratio | 2.60 |
| Intrinsic Value | ₹2,683 |
| Graham Number | ₹1,589 |
| Piotroski Score | 7.00 |
| ROIC (Return on Invested Capital) | 118% |
Outlook for Eicher Motors
Eicher Motors remains well-positioned to capitalize on growing demand in both the premium motorcycle and commercial vehicle segments. The strong brand positioning of Royal Enfield, backed by new launches and international expansion, is expected to drive future growth. Meanwhile, VECV’s steady market share gains indicate resilience in the face of industry challenges.
With a clear focus on innovation, electric mobility, and international expansion, Eicher Motors is gearing up for sustained growth in the coming quarters. Investors will be keenly watching how the company navigates the evolving economic landscape, including supply chain challenges and inflationary pressures.
Conclusion
Eicher Motors’ Q3 performance highlights its strong financial and operational footing, with record-breaking motorcycle sales and steady commercial vehicle growth. Despite marginally missing analyst expectations, the company’s long-term growth trajectory remains promising. With continued product innovation, global expansion, and a growing focus on electric mobility, Eicher Motors is set to ride ahead in the automotive industry.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.