Robust Royal Enfield sales and solid earnings trigger investor optimism
New Delhi: Shares of Eicher Motors, the maker of Royal Enfield motorcycles, surged nearly 7% in early trade on Wednesday following the announcement of its strong third-quarter (Q3FY25) financial results, boosting investor confidence and triggering a fresh rally in the stock.
The stock climbed sharply on the BSE and NSE after the company reported an 18% year-on-year rise in consolidated net profit to ₹1,171 crore, supported by healthy revenue growth, strong festive demand, and robust performance across its motorcycle and commercial vehicle segments. Revenue from operations grew 19% to ₹4,973 crore, while EBITDA rose 10% to ₹1,201 crore, reflecting operational efficiency and expanding market reach.
Royal Enfield Drives Growth Momentum
Royal Enfield, Eicher’s flagship brand, delivered its best-ever quarterly sales performance, selling 2.69 lakh motorcycles, a 17% YoY increase, driven by festive demand, premium model launches, and growing international presence. Exports and premium product demand, including adventure touring and mid-capacity motorcycles, further strengthened volumes.
Meanwhile, VE Commercial Vehicles (VECV), Eicher’s joint venture with Volvo, posted a 6% rise in revenue to ₹5,801 crore, while profit after tax jumped 44% to ₹301 crore, reinforcing the company’s diversified growth strategy.
Brokerages Remain Bullish Despite Margin Pressure
Market analysts largely retained a positive outlook on the stock. Several brokerages reiterated their ‘Buy’ recommendations, citing long-term growth prospects driven by premiumisation, export expansion, and new product launches. However, some brokerages flagged rising marketing expenses and margin pressures, advising caution in the near term.
Despite short-term volatility, analysts believe Eicher Motors remains well-positioned for sustainable growth, supported by strong brand equity, product innovation, and expanding global footprint.
Stock Outlook
With strong earnings visibility and resilient consumer demand, Eicher Motors continues to attract long-term investors, even as markets closely track margin trends and cost dynamics in upcoming quarters.
