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View Promises →Eicher Motors Limited — Q2 FY26
Eicher Motors delivered a record Q2 FY26 with consolidated revenue of ₹6,172 crore (+45% YoY) and EBITDA of ₹1,512 crore (+39% YoY), driven by strong Royal Enfield volumes (327,067 units, +45% YoY) and VECV's best-ever Q2 sales (21,901 units).
bullish
high
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Eicher Motors delivered a record Q2 FY26 with consolidated revenue of ₹6,172 crore (+45% YoY) and EBITDA of ₹1,512 crore (+39% YoY), driven by strong Royal Enfield volumes (327,067 units, +45% YoY) and VECV's best-ever Q2 sales (21,901 units). The GST cut on sub-350cc motorcycles boosted demand, with festive retail up 50% YoY. Royal Enfield maintained 84% market share in mid-size motorcycles. VECV improved EBITDA margin to 8% (+70bps YoY) and announced a ₹544 crore investment for Volvo's automated manual transmission plant. Management remains bullish on H2, citing sustained demand momentum and capacity expansion to 1.35 million units. Key risk: potential slowdown in 450cc/650cc demand post-GST hike to 40%.
ईचर मोटर्स ने दूसरी तिमाही में ₹6,172 करोड़ की कमाई की, जो पिछले साल से 45% ज्यादा है। कंपनी का मुनाफा ₹1,512 करोड़ रहा। रॉयल एनफील्ड की बाइक की बिक्री 45% बढ़कर 3.27 लाख यूनिट हो गई। सरकार ने 350cc से कम इंजन वाली बाइकों पर जीएसटी घटाया, जिससे त्योहारों में बिक्री 50% बढ़ी। रॉयल एनफील्ड का बाजार में 84% हिस्सा है। वीईसीवी ट्रकों का कारोबार भी बेहतर हुआ। कंपनी ने नया गियरबॉक्स प्लांट लगाने के लिए ₹544 करोड़ निवेश का ऐलान किया। आगे भी मांग अच्छी रहेगी, लेकिन 450cc और 650cc बाइकों पर जीएसटी बढ़ने से बिक्री धीमी हो सकती है।
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GST hike on 450cc/650cc motorcycles may dampen demand
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Read Transcript →Quarter Snapshot
Royal Enfield motorcycle sales
327,067
+45% YoY
Record quarterly sales driven by strong demand across 350cc models and festive season.
Mid-size motorcycle market share
84%
flat YoY
Royal Enfield continues to dominate the mid-size segment in India.
VECV light & medium-duty truck market share
34.8%
+? pp YoY
VECV achieved #1 position in LMD trucks with 10,096 units sold in Q2.
Festive retail growth (Sep-Oct)
~249,000 units
+50% YoY
Record festive sales driven by GST cut and product refreshes.
What Changed vs Last Quarter
NEW
Capacity expansion to 1.35 million units annually
Debottlenecking and new module investment will increase capacity from 1.2 million to 1.35 million, with new capacity kicking in from Q1 FY27.
NEW
VECV investment of ₹544 crore for AMT plant
Greenfield factory in Madhya Pradesh for Volvo's 12-speed automated manual transmission, with most production exported to Asia and Oceania.
NEW
H2 CV industry volume recovery expected
Management expects better growth in H2 due to infrastructure spending, GST impact, and replacement demand, with second half typically 55% of annual volume.
DROPPED
Capacity expansion via modular approach
Current capacity is ~1.2 million units, operating at ~90% utilization. Future capacity will be added in modules, focusing on new products rather than heavy capex.
DROPPED
Festive season volume growth expected
Management is bullish on festive demand, supported by new Hunter 350 colors, media campaigns, and dealer floor financing for ~575 dealers.
DROPPED
Commodity cost headwind of ~30 bps in Q1
Steel and aluminum impacted margins by ~50 bps, partially offset by value engineering (20 bps). Further impact expected in Q2, with mitigation through price increases and cost actions.
NEW RISK
GST hike on 450cc/650cc motorcycles may dampen demand
Post-GST hike to 40%, 450cc and 650cc sales have slowed; recovery is slower for 450cc. Management is engaging with government for rate reduction.
NEW RISK
Heavy-duty truck demand remains sluggish
VECV's HD truck volumes grew only 3.5% in Q2, with industry growth impacted by rail freight migration and higher truck productivity. H2 recovery is uncertain.
RISK GONE
Rare earth material supply disruption
Rare earth materials used in gear sensors and alternators caused production issues for performance platforms (Himalayan, Guerrilla) in Q1. Mitigation via alternative materials is underway but remains a risk.
RISK GONE
Stagnant domestic two-wheeler industry growth
The Indian two-wheeler industry grew slower than expected in Q1, with 125cc+ segments not expanding. Royal Enfield's growth is coming from market share gains, which may be harder to sustain if the overall market remains weak.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25, Q4 FY25
Flying Flea showcased at EICMA; official launch planned as per timelines.
Mentioned in Q2 FY25, Q3 FY25
Exports face headwinds from geopolitical challenges and tariff uncertainties, though management remains cautiously optimistic.
Mentioned in Q2 FY25, Q3 FY25
Higher marketing and brand-building expenses may continue to weigh on EBITDA margins, as management prioritizes growth over margin expansion.
Mentioned in Q1 FY25, Q2 FY25
Despite revenue growth, VECV EBITDA margin fell to 7.1% (down 70bps YoY), while peers improved; management cited need for better operating leverage.
Fast read
Guidance and risk preview
Debottlenecking and new module investment will increase capacity from 1.2 million to 1.35 million, with new capacity kicking in from Q1 FY27.
Post-GST hike to 40%, 450cc and 650cc sales have slowed; recovery is slower for 450cc.
View Risks →