Shares of Eicher Motors registered their strongest single-day gain in more than five years after the company announced robust third-quarter earnings and a major production expansion plan.
The stock climbed nearly 6.8%, marking its biggest intraday rise since November 2020, and touched a fresh 52-week high of ₹7,792.50. Increased investor interest also pushed trading volumes significantly above average levels.
💰 Strong Q3 Financial Performance
The Royal Enfield parent reported a consolidated net profit of ₹1,421 crore for the October–December quarter, reflecting a 21% year-on-year increase compared to ₹1,170 crore in the same period last year.
Revenue from operations rose 23% to ₹6,114 crore, up from ₹4,973 crore a year earlier.
Operational metrics also showed solid improvement:
- EBITDA surged 30% to ₹1,557 crore
- EBITDA Margin improved by 130 basis points to 25.46%
The company’s consistent margin expansion highlights improved cost efficiency and healthy demand momentum.
🏍️ Royal Enfield Sales Growth
Royal Enfield recorded quarterly motorcycle sales of 3,25,773 units, up 21% from 2,69,039 units in the corresponding quarter last year.
Meanwhile, VE Commercial Vehicles (VECV) — Eicher’s commercial vehicle arm — reported:
- Sales of 26,086 vehicles (vs 21,010 last year)
- Revenue of ₹7,019 crore (up 21%)
- EBITDA growth of 26% to ₹652 crore
🏗️ ₹958 Crore Capacity Expansion Plan
The company’s board approved a major capacity expansion initiative for Royal Enfield.
Currently, Eicher Motors has an annual production capacity of around 14.6 lakh motorcycles across its plants. With the new plan, total capacity will increase to 20 lakh units annually.
The expansion will involve a ₹958 crore brownfield investment at the Cheyyar plant in Tamil Nadu. The ramp-up will begin in Q1 FY2026-27 and is expected to be completed by FY2027-28.
Management stated that the investment will help meet rising domestic and international demand while ensuring faster and more cost-efficient scaling of production.
📈 Heavy Trading Activity
The rally was accompanied by strong trading volumes:
- NSE volumes rose over three times the two-week average
- BSE trading activity also jumped significantly
At one point during early trade, Eicher Motors emerged as the top gainer in the NIFTY50 index, outperforming the broader market.
⚖️ Additional Provision
The company also provided ₹55.45 crore toward the implementation of new labour codes that came into effect in November 2025.
