Eicher Motors Ltd Management Discussions

ECONOMIC OVERVIEW

Indian Economy

India retained its position as one of the worlds fastest-growing major economies in FY 2025-26, with Real GDP growth estimated at 7.6%, accelerating from the 7.1% in FY 2024-25. Strong domestic consumption, public capital expenditure, and resilient services exports drove the expansion, with agriculture supported by a favourable monsoon. In US dollar terms,

Indias GDP stood at approximately USD 3.92 Trillion, with the economy placed sixth in global rankings, reflecting the impact of rupee depreciation and a statistical revision of the GDP base year, rather than any underlying slowdown. Inflation remained benign through the year, supported by a prolonged decline in food prices. Consumer Price Index (CPI) eased to 3.4% by March 2026, well within the RBIs target band, prompting the central bank to reduce the repo rate to 5.25% to support growth.

Source: 1) https://www.pib.gov.in/PressReleasePage. aspx?PRID=2233518&reg=3&lang=1

2) https://timesotindia.indiatirnes.com/business/india-business/ explained-on-way-to-4^th-largest-how-india-slipped-to- 6^th-rank-what-it-means-for-3^rd-largest-economy-drearn/ articleshow/130356662.cms

Global Economy

Global economic growth remained moderate in Financial Year 2026, with the International Monetary Fund (IMF) projecting global output growth at around 3.1%. Escalating geopolitical tensions in the Middle East, elevated trade uncertainty, energy market disruptions, and tighter financial conditions weighed on global trade, investment activity, and business sentiment across regions. However, resilient services activity and technology-led investments provided partial support to economic momentum.

Global inflation, after easing through 2025, witnessed renewed pressure during 2026 due to higher energy and food prices arising from supply-side disruptions. The IMF expects global headline inflation to rise to around 4.4% in 2026 before moderating gradually. In major developed economies such as the USA, the UK, Europe, Australia and Japan, inflation remained relatively stable within the range of 2%-3.5%, enabling selective monetary easing in certain markets. Meanwhile, several emerging economies continued to face elevated inflation, currency volatility, and tighter monetary conditions, resulting in sustained higher interest rates across markets.

Source: IMF, World Economic Outlook April 2026

INDUSTRY OVERVIEW

Indian Two-Wheeler Industry

The two-wheeler segment posted its highest-ever annual sales in FY 2025-26 of 2.17 Crore units, with a growth of 10.7% over FY 2024-25, crossing the previous peak of 2.12 Crore units achieved in FY 2018-19, as per SIAM (Society of Indian Automobile Manufacturers). The implementation of GST 2.0, repo rate cuts, and income tax relief provided a strong impetus to consumer demand, though growth was back-ended for the two-wheeler industry. First half of FY 2025-26 (H1) was flat at sub 1%, while Second half posted growth of approximately 21.5%. The exports of two-wheelers from India recorded highest ever mark at 51.8 lakh units in FY 2025-26, marking a growth of 23.4% over last year, driven by a wider product range, growing global recognition of Indian two-wheeler brands, and support from a depreciated rupee as per SIAM.

Source: SIAMs official press release dated 14 April 2026

Global Motorcycle Industry

The global motorcycle industry continued its upward trajectory in 2025, with worldwide sales reaching 65.2 Million units, reflecting a 4.7% year-on-year growth despite ongoing macroeconomic uncertainties. India retained its position as the worlds largest motorcycle market, supported by sustained domestic demand and continued premiumisation trends, while Latin America and ASEAN markets also recorded healthy momentum during the year.

The premium motorcycle segment witnessed strong traction, driven by rising demand for lower-displacement motorcycles, adventure touring, and lifestyle-led mobility experiences. Simultaneously, electric two-wheelers continued gaining global acceptance as manufacturers accelerated investments in cleaner and technology-led mobility solutions. Indias twowheeler exports remained robust during the year, supported by deeper market penetration across Africa, Latin America, and other emerging international markets.

Source: MotorCyclesData - Global Motorcycle Industry 2025 Report https://www.fortunebusinessinsights.com/motorcycle-market-I05I64

COMPANY OVERVIEW

Eicher Motors Limited (EML) (Bloomberg: EIM IN) is a leading Indian multinational automotive company, listed on the BSE and NSE, with diversified interests in motorcycles and commercial vehicles. EML owns Royal Enfield, the worlds oldest motorcycle brand in continuous production since 1901, and a pioneer in shaping the mid-size motorcycle segment globally. EML owns 54.4% stake in VE Commercial Vehicles Limited (VECV), a joint venture with the Volvo Group of Sweden, a global leader in commercial vehicles.

About Royal Enfield

The oldest motorcycle brand in continuous production,

Royal Enfield has created beautifully-crafted motorcycles since 1901. From its British roots, a manufacturing plant was established in Madras in 1955, a foothold from which Royal Enfield spearheaded the growth of Indias mid-size, two-wheeler segment. Royal Enfield Motorcycles are engaging, uncomplicated, accessible, and fun to ride; a vehicle for exploration and self-expression. Its an approach the brand calls Pure Motorcycling.

4 platforms and 14 motorcycles:

1. 350cc platform : Bullet, Classic, Goan Classic, Hunter & Meteor

2. 440cc : Scram 440

3. 450cc : Guerrilla & Himalayan

4. 650cc : Classic, Continental GT, Interceptor, Bear, Shotgun, Super Meteor

The company recently unveiled its new City+ motorcycle brand - the Flying Flea - a fresh take on urban mobility, blending authentic design with advanced technology.

About VE Commercial Vehicles Limited (VECV)

VE Commercial Vehicles Limited (VECV) is a joint venture between the Volvo Group and Eicher Motors Limited. In operation since July 2008, the company includes the complete range of Eicher-branded trucks and buses, alongwith Volvo Buses, and exclusive distribution exclusive distribution of Volvo Trucks in India. VECV also supports engine manufacturing and export for the Volvo Group, while operating divisions such as Eicher Power Solutions and Eicher Engineering Components. Known for its commitment to innovation and reliability, VECV has played a key role in modernising commercial transportation in India and other developing markets.

FY 2025-26: Another great year for Royal Enfield

FY 2025-26 marked another defining chapter in Royal Enfields enduring 125-year journey. Rooted in a deep understanding of motorcycling and the spirit of its riders, the brand continued to strengthen its approach across motorcycles, services, and community experiences, guided by its unwavering commitment to Pure Motorcycling. Backed by strong momentum across markets, Royal Enfield further deepened its global resonance and cultural relevance among riders worldwide.

The year stood as Royal Enfields strongest yet with the company achieving its highest-ever volumes and revenue. Royal Enfield sold 12,27,977 motorcycles in FY 2025-26, reflecting a 22% year-on-year growth, while domestic sales grew 20% to 11,07,343 motorcycles and international volumes registered a strong 23% growth, with exports reaching 1,20,634 units.

Volume and market share performance in India

	FY 2024-25	FY 2025-26
RE volumes - India	9,02,757	11,07,343
REs market share in Motorcycles	7.3%	8.44%
REs market share in >125cc	30.1%	31.3%
REs market share in mid-size (250cc & above)	87.1%	86.8%

While macroeconomic conditions remained volatile across geographies, the Company remained focussed and made significant headway in strengthening its presence across priority markets. New product internetions, strategic brand-building initiatives and sustained engagement with the community helped Royal Enfield sustain the growth momentum.

RE-BALANCE—A Strategic long-term vision

Rooted in its enduring purpose, mission, and values, Royal Enfield continues to progress through RE-BALANCE, a strategic long-term vision designed to strengthen business resilience amidst evolving market dynamics and intensifying competition. Guided by the philosophy of Pure Motorcycling, the framework reflects the Companys commitment to building a future-ready organisation that balances innovation, customer-centricity, growth, and responsible business practices.

Pillar

Products - ICE & EV:

Continue delivering best-inclass motorcycles that enhance desirability within the Internal Combustion Engine (ICE) portfolio, while progressively embracing the shift to Electric Vehicles (EVs) as a transformative opportunity through sustained innovation.

Pillar Brand Led

CX: Redefine

02 customer journeys by elevating the brand experience - moving beyond transactional touchpoints to create meaningful, immersive engagements that reflect the spirit of Pure Motorcycling.

Pillar Growth Focus:

Maintain a bold and f 113 ambitious long-term growth outlook, with a sharp focus on balancing scale with profitability, and agility with strategic discipline.

Pillar Sustainability:

Build a responsible and futureconscious business by aligning social and commercial objectives, ensuring a balanced impact on the environment, communities and the broader ecosystem.

PRODUCT UPDATES (PETROL)

Meteor 350 : Elevating the cruiser experience to a whole new level

Meteor 350 Sundowner Orange Edition

Strengthening its cruiser portfolio,

Royal Enfield introduced the Meteor 350 Sundowner Orange special edition at Motoverse 2025. Conceived as a limited-run variant, the model featured a distinctive sunset-inspired colourway and a factory-fitted touring package, including a deluxe seat, flyscreen, passenger backrest, and Tripper navigation pod. The edition also marked the introduction of tubeless spoke wheels, alongside contemporary enhancements such as LED lighting and a USB Type-C port. Mechanically unchanged, it continues with the proven 349cc J-series engine. The launch celebrated the Meteors growing global community (6,00,000+ riders around the world) and reinforced Royal Enfields focus on accessible, long-distance cruising experiences.

Meteor 350: New colours

Royal Enfield launched the 2025 Meteor 350 in India.

The motorcycle is available in four variants: Fireball, Stellar, Aurora, and Supernova. The Meteor 350 gets visual and functional upgrades, such as an LED headlamp, LED turn indicators, Tripper navigation pod, USB Type-C fast-charging port, assist and slipper clutch, and adjustable brake and clutch levers. The Fireball and Stellar variants come standard with an LED headlamp and Tripper pod, while the Supernova and Aurora trims get adjustable levers as standard.

Himalayan Mana Black Edition

A striking new version of the celebrated adventure motorcycle, the Himalayan Mana Black, launched at Motoverse 2025, is inspired by the formidable Mana Pass known to be one of the worlds most challenging high-altitude routes. Mana Pass, situated at 18,478 feet (5,632 metres) above sea level, is a true test of endurance and willpower that only the most determined riders dare to overcome. The unique design and ergonomics of the Himalayan Mana Black Edition, which were created to maximise off-road riding, channel that daring spirit. This edition, which features matte details and a deep Stealth Black finish, exudes minimalism, purpose, and unadulterated adventure. It is intended for people who view every route as a calling rather than a challenge.

Guerrilla 450 Apex Edition:

A focussed expression

Royal Enfield launched the 2026 Guerrilla 450 APEX, a sharper, more focussed expression of its street-performance. The Apex variant brings revised ergonomics, sportier riding dynamics, and enhanced grip through 17-inch road-biased tyres, improving both wet and dry performance. The update is complemented by new colourways and visual differentiation, reinforcing its urban roadster appeal. The Apex broadens the Guerrillas accessibility while retaining its core 450cc performance DNA. The model has also been introduced across global markets, signalling Royal Enfields continued push to diversify its 450cc portfolio.

Guerrilla 450: From the shadows to the street

Royal Enfield launched the Shadow Ash colourway of the Guerrilla 450 at GRRR Nights X Underground in Pune, the Dash variant with Tripper Dash featured an olive green tank and blacked-out details, showcased amid drag races, drift stunts, and live rap performances that highlighted the motorcycles power and urban roadster appeal.

2025 Hunter 350: Sharper styling, broader reach -

Royal Enfield reinforced the Hunter 350s position as a key urban roadster with the introduction of a new variant and additional colourways for 2025. The updated lineup includes enhancements such as alloy wheels, improved lighting, and feature refinements aimed at improving everyday usability and rider comfort. A new Graphite Grey colour option further expands the motorcycles visual appeal, contributing to a broader palette now spanning multiple variants. The Hunter 350 continues to be among Royal Enfields most accessible motorcycles, appealing strongly to younger, city-focussed riders while retaining the proven 349cc J-series platform.

Goan Classic 350: Bobber-inspired and free-spirited * -

The upgraded Goan Classic 350 version now comes with additional rider-focussed features that enhance the overall ride experience. With a new assist- and-slipper clutch, the Goan Classic 350 offers better control during downshifts, smoother gear changes, and lighter clutch action. The existing USB Type-C charging port on the motorcycle has been upgraded for faster charging, ensuring riders stay connected with essential devices on the go.

At the core of the Goan Classic is the popular349cc air-oil- cooled, single-cylinder engine that balances effortless power with refined character. Producing 20.2 bhp at 6,100 rpm and 27 Nm of torgue at 4,000 rpm, this engine is tuned for smooth, unhurried performance, ideal for the laid- back nature of bobber riding. The I 5-speed gearbox allows for easy shifts and relaxed cruising, whether in city traffic or on open highways.

ELECTRIC TWO-WHEELERS

FLYING FLEA

Approaching a new frontier: Flying Flea C6 launched in India

Positioned as the Companys inaugural EV offering, the first product from Flying Flea, the FF.C6 launched in India with its first store in Bengaluru marking Royal Enfields foray into electric urban mobility. Through the year, the FF.C6 was showcased across Delhi, Bengaluru, Mumbai, Hyderabad, and London, building momentum for the brands entry into electric mobility. This culminated in its official launch in India with the opening of the first Flying Flea store in Bengaluru. Blending agility with advanced connected technology, the FFC6 delivers a deeply intuitive riding experience. An affirmation of the brands design-first ethos and quiet disruption of category conventions, Flying Flea also won the prestigious Red Dot Award for its classic- styled FF.C6, under the Design Concept category.

The lifestyle ethos extends beyond the motorcycle, fuelling a roster of incredible creative collaborations with inspiring voices from the design and lifestyle space. The upcoming financial year will mark the commercial rollout of the first electric motorcycle under the Flying Flea brand, marking a transformative new chapter in companys mobility strategy.

Scrambler Styled Flying Flea S6: The Urban Explorer

Building on the commitment to keep moving forever forward, Flying Flea, the City+ electric mobility brand from Royal Enfield, unveiled the scrambler-styled Flying Flea S6 at EICMA 2025. Combining lightweight structure and refined design with off-road ability, the FF.S6 is an agile, versatile vehicle that pushes the boundaries of urban exploration.

Inspired by history and designed for the future, the new scrambler-styled FF.S6 follows the same ethos as the original Flying Flea motorcycles, which were purpose-built and airdropped via parachute for all-terrain riding. The FF.S6 is deeply rooted in this DNA of lightness, agility, and adaptability.

The FFS6 is a lightweight City+ explorer and a significant addition to the Flying Flea portfolio. It is a road-ready and trail-ready evolution of the brand, offering riders the freedom and flexibility required to navigate varied urban scapes.

APPAREL

Get In-Streets Collection: Urban identity, rider spirit

Royal Enfield expanded its lifestyle portfolio with the introduction of the Get In-Streets collection, aimed at capturing the intersection of urban culture and motorcycling. Designed for everyday wear, the collection reflects a shift toward street-inspired silhouettes, relaxed fits and graphic-led storytelling that resonates with younger, city-based riders.

The range builds on Royal Enfields broader strategy of positioning apparel as an extension of rider identity rather than purely functional gear. By integrating contemporary design cues with subtle brand elements, the collection aligns with evolving consumer preferences for versatility and self-expression.

Off-Road Collection: Purpose-built for adventure riding

Strengthening its technical riding gear portfolio, Royal Enfield launched the Off-Road Collection, designed to support the growing popularity of adventure and trail riding. The range includes purpose-built jackets, pants, gloves, and protective elements engineered for durability, mobility, and climate adaptability across varied terrains. Developed with a focus on rider safety and comfort, the collection incorporates features such as impact protection, ventilation systems, and abrasion-resistant materials.

Urban Riding Gear: Everyday mobility, elevated

Royal Enfields Urban Riding Gear portfolio reflects a growing focus on daily usability, combining protection with comfort and understated design. Tailored for city riders, the range includes lightweight jackets, helmets, and accessories that balance safety with ease of movement and all-day wearability. The gear integrates protective elements such as CE-certified armour while maintaining a minimalist aesthetic suited for urban environments. This approach responds to the increasing demand for gear that transitions seamlessly between riding and everyday activities.

Conscious Collection: Apparel with purpose

The Conscious Collection highlights the brands commitment to sustainability and responsible manufacturing within its apparel business. The collection incorporates environmentally conscious materials such as organic cotton and recycled fabrics, alongside processes aimed at reducing environmental impact. The initiative forms part of a broader industry shift toward responsible fashion, while remaining rooted in the brands ethos of durability and timeless design. Through the Conscious Collection, Royal Enfield extends its philosophy of mindful motorcycling into the apparel space, reinforcing long-term value over fast consumption.

Strengthening its technical riding gear portfolio, Royal Enfield launched the Off-Road Collection, designed to support the growing popularity of adventure and trail riding.

BRAND

Motoverse 2025: A global rider confluence

Motoverse has always been where the heart of Royal Enfield truly beats: a living, breathing convergence of subcultures, craft, style, and the people who make motorcycling what it is. It is proof that Royal Enfield doesnt just build machines but builds a culture that moves. Hosted in Goa, the event showcased new products, including electric motorcycles like the Flying Flea S6, alongside immersive riding experiences, showcases, and cultural engagements. This year, the Hilltop at Vagator saw over 40,000 people roll in from across the globe. The convergence came to life as riders and enthusiasts from diverse backgrounds immersed themselves in rides, races, hands-on workshops, and world-class performances. With participation spanning multiple geographies and riding disciplines, Motoverse reinforces the brands positioning as a curator of motorcycling culture.

The thrill extended beyond the track, with this years edition bringing to Goa Grammy-winning producer Diplo, a long time Royal Enfield rider who rode into the festival on the Himalayan 450, and breakthrough rapper Hanumankind. Other loved artists like Euphoria, Parvaaz, The Yellow Diary, MIDIval Punditz, Kutle Khan x Karsh Kale, Thaikkudam Bridge and more were amongst the ones who owned the mainstage across the three days. The Art of Motorcycling arena showcased stunning artworks from 12 countries, after receiving over 51,000 entries exploring the intersections of design, technology, and freedom on two wheels coming together under the theme of cine-verse.

EICMA 2025 - Fuelled by Legacy Charged for the Future

Royal Enfield marked another monumental milestone in its storied journey as it celebrated 125 years of Pure Motorcycling. The brands EICMA showcase commemorates this landmark occasion by offering experts and enthusiasts a glimpse into its historical journey, and connecting this legendary past with its dynamic present and ambitious future.

Bringing the story alive at EICMA, Royal Enfield unveiled a slew of new motorcycles, offering a peek into some soon-to- be-launched models and platforms, and showcased special edition variants of some community favourites. Key unveilings included the Bullet 650, the Classic 650 125th Anniversary Edition, the Himalayan Mana Black and a limited-edition Shotgun 650 collaboration, alongside the debut of the Flying Flea FF.S6 electric scrambler. Together, these introductions highlighted Royal Enfields ability to seamlessly blend legacy with modern innovation. Serving as the starting point of a year-long 125-year celebration, the showcase reinforced the brands mission to make Pure Motorcycling accessible while shaping its next chapter globally.

The Great Frog London Collaboration: Heritage craft meets motorcycling

In an exclusive collaboration, Royal Enfield collaborated with The Great Frog London to bring together the distinctive worlds of motorcycling and rock n roll-inspired jewellery. As part of the collaboration, the brand showcased a custom-inspired chopper motorcycle, a limited edition handcrafted sterling silver ring, and an exclusive apparel collection. At the heart of the collaboration is a specially commissioned custom Royal Enfield Super Meteor 650, a motorcycle known for its laid-back cruising capability and elegant design. Inspired by The Great Frogs rich heritage in handcrafting silver jewellery and its deep association with music and motorcycle subcultures, the motorcycle blends bespoke design details with raw attitude.

Royal Enfield x Vallon: Design-led partnership

Royal Enfield partnered with Vallon to launch a limited-edition range of Moto Aviators, inspired by its Classic motorcycle lineup. The collaboration blends performance-oriented eyewear design with the timeless aesthetic cues of Royal Enfield motorcycles, including references to models like the Classic 350 and Classic 650. Positioned within the brands growing lifestyle portfolio, the collection reflects a focus on functional yet design-led accessories tailored for riders.

The partnership reinforces Royal Enfields commitment to extending its identity beyond motorcycles into curated lifestyle products that resonate with its global community.

The Ballad of the Bullet with Royal Albert Hall

In a coming together of legacy, craft, and creativity, Royal Enfield collaborated with the Royal Albert Hall in London for the creation of The Ballad of the Bullet. The continuous production features London-based composer and multi-disciplinary artist Rushil Ranjan, and it is the official campaign film for the launch of the new Royal Enfield Bullet 650 motorcycle. Ranjan is a Royal Enfield enthusiast, life-long rider, and an artist who bridges the prominent cultures of motorcycling and music. He has composed an original score that translates the story of this motorcycle into a powerful musical composition. For the first time in history, the Royal Albert Halls 153-year-old organ - a British Icon in its own right - joins forces with traditional Chenda and Paria drums from South India, creating a stunning dialogue between grandeur and raw percussive energy. The ballad culminates in a transcendent veena solo from fellow associate artist Abi Sampa.

Royal Enfield x Krafton: Expanding digital frontiers

Royal Enfield and Krafton announced a landmark partnership that bridges two of Indias most influential cultural domains— mobile gaming and motorcycling. Offering an unprecedented blend of automotive heritage and interactive entertainment, Royal Enfield integrated its iconic Bullet 350 and the OG cafe racer Continental GT 650 as rideable motorcycles inside BATTLEGROUNDS MOBILE INDIA (BGMI). Royal Enfield also showcased a custom-built, real-world motorcycle inspired by BGMIs tactical and war-ready aesthetic—crafted on the soul of the Continental GT 650—underscoring the creative synergy between both brands.

MARQUEE RIDES & EVENTS

21^st Himalayan Odyssey: A flagship riding experience

Royal Enfields Himalayan Odyssey returned for its 21^st edition in 2025, reaffirming its status as one of the most iconic motorcycling expeditions globally. The ride spanned approximately 2,600 kilometres over 18 days, traversing some of the most challenging terrains across Ladakh and Spiti. Bringing together riders from across the world, the Odyssey blended endurance riding with community and cultural immersion. Flagged off from Chandigarh, the event continued to embody Royal Enfields core philosophy of exploration and adventure, offering participants a curated high-altitude riding experience that tests both machine and rider.

Himalayan Spirit: Unlock the true ADV mindset

Himalayan Spirit is a curated off-road learning experience designed exclusively for Himalayan riders. Its a gateway to great adventures, a "life hack" for every rider who wants to explore beyond the tarmac. The experience is built on a simple philosophy: the only thing you have to do to go up is show up. Designed to lower the psychological barriers around adventure motorcycling, Himalayan Spirit equips riders with essential riding techniques and life skills in a safe, structured environment. Its not about being the most adventurous or the fastest; its about being ready with the right mindset first.

HunterHood: Putting street culture in the spotlight

Born from Royal Enfields community-first philosophy, HunterHood is inspired by the Hunter 350, a motorcycle designed for the everyday rhythm of urban life.

Agile, responsive, and expressive by nature, the Hunter belongs to the streets it rides through. HunterHood takes that spirit off the saddle and into the city, creating a space where riders, skaters, artists, dancers and musicians, and homegrown labels can move through the streets on their own terms. Becoming Royal Enfields super popular street culture platform, HunterHood celebrates music, culture, and raw creative energy in each city that it moves to, letting it write its own version of the experience.

GRRR Nights: Bringing the citys automotive subcultures to life

Built around the spirit of the Guerrilla 450, GRRR Nights turns the city into a space for machines, music, and movement.

It reflects a riding culture shaped by precision, control, and expression. The motorcycles performance capabilities come alive through experiences across the night, from controlled drifts to high-skill stunt riding. Inspired by the Guerrilla 450 - a nimble, agile, and precise muscle roadster - the event celebrates performance, mechanical artistry, and the communities that thrive around motorcycles & their sub-cultures.

GROWTH FOCUS

India Business

Royal Enfield - India Performance

In FY 2025-26, Royal Enfield achieved record domestic sales of 11,07,343 units, reflecting 23% year-on-year growth and marking the second time the brand surpassed 1 million units in the Indian market. This performance significantly outpaced the broader two-wheeler industry, with Royal Enfield growing at 26% for the full year, ahead of the industry, including scooters.

New launches such as the Guerrilla 450 Apex, alongside refreshed offerings across the 350cc range, including the new colours & variants of Hunter 350 and Meteor 350, fuellec momentum through the year. The brands focus on sharper positioning, consistent engagements with customers, and youth-oriented models solidified its dominant position in Indias premium motorcycle market.

	FY22	FY23	FY24	FY25	FY26
Royal Enfield Domestic Sales (000)	521	734	834.8	902.8	1,107.3
Domestic Motorcycle Market (Millions)	9.0	10.2	11.6	12.3	13.0
RE Market share in Domestic Motorcycles	5.8%	7.2%	7.2%	7.3%	8.4%
Motorcycles >125cc (000)	1,813	2,308	2,807	2,995	3,535
RE Market share (>125 cc)	28.7%	31.8%	29.7%	30.1%	31.3%

Network, Financing, & Business Activities

Retail Network

Royal Enfield continued to deepen its reach across India, expanding its retail presence through a combination of large-format dealerships and studio stores. As of FY2025-26, the brand operates through more than 2,074 stores across all major cities and towns in India. Further Royal Enfield is present in 80+ countries through 1,212 stores enabling deeper engagement with aspirational customers across diverse geographies. In a landmark recognition, the Company was ranked #1 in the FADA Dealer Satisfaction Survey for 2025, for the first time ever, reflecting the strength of its dealer partnerships and the consistency of its customer service experience.

Financing

The Company continued to enhance affordability and accessibility by expanding its financing offerings. With low down-payment options, extended tenures, and attractive interest schemes, finance penetration stood at 59.3% by the end of FY 2025-26. The RE Apps digital finance marketplace continued to serve as a key enabler, offering seamless, personalised financing journeys to customers across India.

Enhancing Customer Experience through Innovations

Royal Enfield continued to scale its REOWN pre-owned platform and the Assured Buyback Programme, offering consumers flexible tenure options, guaranteed buyback value, and lower EMIs, redefining customer acquisition and ownership journeys while broadening the customer base and encouraging product upgrades.

With low down-payment options, extended tenures, and attractive interest schemes, finance penetration improved to 59.3% by the end of FY 2025-26.

INTERNATIONAL BUSINESS

In FY 2025-26, Royal Enfield continued to accelerate its global ambitions, strengthening its position as a leading mid-size motorcycle brand across key international markets. The Company built on the strong foundations established in prior years, deepening local market engagement, and driving volume growth through new product launches and community-led brand initiatives. International volumes crossed 1,20,634 units in FY 2025-26, a 20% YoY increase reflecting sustained momentum across all geographies.

Americas

The Americas continued to be Royal Enfields largest international market by volume. The Company sustained its growth trajectory, with Brazil and other Latin American markets remaining key drivers of retail momentum. Royal Enfield now operates across 339 retail stores in the region, including exclusive outlets and multi-brand dealerships.

In North America, the brand maintained an estimated 7% share in the middleweight segment, supported by focussed product launches and steady network expansion. The ongoing CKD facility in Brazil continued to serve as a strategic manufacturing anchor for the region, reinforcing Royal Enfields long-term commitment to the Americas and enabling cost-effective, faster go-to-market execution across Latin American markets.

Europe, Middle-East, and Africa (EMEA)

The Company continued to hold a leadership position in the UK in the mid-size motorcycle segment and sustained its presence across major European markets, including Italy, France, Spain, and Germany. The Netherlands subsidiary,

Royal Enfield Europe B.V., launched in FY 2024-25, continued to strengthen direct market presence and streamline the regional supply chain during the year.

Expanding its retail network across the region, the Company added stores in new locations and enhanced customer experience through its Extra Mile Retail Development Programme. It also focussed on standardising service quality, sales training, and retail excellence.

In the Middle East, the partnership with the AW Rostamani Group continued to support brand growth in the UAE.

Royal Enfields presence in Turkey, established through its partnership with Kibar Holding, gained further traction during the year. During FY 2025-26, Royal Enfield held an approximate 8% market share in the EMEA middleweight segment and remains one of the top brands in the category across Europe.

Asia Pacific (APAC)

The APAC region continued its positive growth trajectory in FY 2025-26, with strong traction across Thailand, Indonesia, and South Korea. The fully-owned CKD assembly plant in Thailand, a key milestone established in FY 2024-25, continued to deliver faster go-to-market capability and deeper manufacturing integration across the region.

Royal Enfield further expanded its retail network across APAC, with new market entries into Taiwan and Hong Kong during the year, the latter through the opening of its first exclusive store. The Companys network now spans 227 retail outlets across the region. Brand-building initiatives, community rides, and strategic collaborations continued to strengthen Royal Enfields cultural relevance across APAC markets.

During the year, the Company launched the Classic 650 in Thailand and the Goan Classic 350 in both South Korea and Indonesia, reflecting its continued commitment to bringing its expanding product portfolio to global audiences. The brand maintained its #2 position in Thailand and continued to strengthen its standings in South Korea and Australia in the middleweight segment. Royal Enfield holds an approximate 10% market share in APAC, consistent with the prior year.

SAARC

The SAARC region remained a significant contributor to Royal Enfields international volumes in FY 2025-26.

The Companys manufacturing unit in Bangladesh, set up in collaboration with IFAD Motors and located in Chauddagram, Cumilla District, Royal Enfields sixth assembly unit outside India, continued to scale operations during the year, further reiterating the brands long-term commitment to the region.

In Nepal, the Company launched Classic 350, Meteor 350, Hunter 350, and Scram 440 during the year, continuing to build on strong CKD operations in the market. Royal Enfield continues to lead the >125cc segment in Nepal and remains focussed on deepening retail and ride-led community engagement. Across SAARC markets, the Company sustained its focus on retail expansion, product availability, and community engagement to deepen brand penetration. The region accounted for 22% of total international volumes in FY 2025-26, reflecting the continued strength of the brand in key neighbouring markets.

ALLIED BUSINESS

Royal Enfields commitment to delivering a pure motorcycling experience extends well beyond motorcycles, with its non-motorcycle business continuing to emerge as a significant growth driver. This segment enables self-expression, customisation, and ownership ease for riders across the globe.

In FY 2025-26, allied business sustained its strong growth momentum, comprising apparel, accessories, and after-sales services. The revenues stood at C 3,351 crores, accounting for approximately 14% of overall revenues.

After-sales service and Spare parts

With over 1 Million order lines processed during November and December 2025 alone, a 24% increase over the previous year. The service business crossed 10.3 Million job cards during the year, with out-of-warranty job cards growing 22% and the IM Service score reaching 64, representing a 37% improvement over the prior year.

Royal Enfield Accessories

This year, the brand introduced premium, street-legal Arrow Silencers for the Himalayan 450, engineered for weight reduction and improved tonal quality, catering to the evolving needs of the adventure riding community. It also partnered with GIVI to enable the development of world-class hard and soft luggage accessories, offering riders durable and versatile solutions for both everyday use and long-distance travel. Additionally, The Make It Yours (MiY) configurator continued to play a central role in Royal Enfields personalisation strategy, enabling customers to customise motorcycles digitally at the point of booking with accessories, seats, protection kits, and styling options.

Apparel

The apparel business continued its strong momentum in FY 2025-26, with overall revenues growing 20% over the prior year. The Company sold over 1.5 Million helmets, reflecting 22% year-on-year growth.

Royal Enfield continued to strengthen its design-led apparel and riding gear portfolio through new collections, purpose-built riding equipment, and lifestyle collaborations that blended functionality, craftsmanship, and self-expression. During the year, the brand introduced the "Get In-Streets" apparel range inspired by heritage motorcycling and everyday urban journeys, alongside city-focussed outerwear designed for modern commuting and protective performance.

At Motoverse 2025, Royal Enfield expanded its ecosystem of riding gear and collectables with new protective equipment, communication technology, and graphic-led merchandise. Reinforcing its commitment to responsible craftsmanship, the brand also launched the Conscious Collection under its Green Pursuit initiative, featuring apparel made using recycled and natural materials. Further extending its lifestyle offerings, Royal Enfield partnered with VALLON to launch the Moto Aviators collection inspired by the Classic motorcycle range, combining timeless motorcycling aesthetics with modern performance and safety.

Manufacturing Excellence

The Company strengthened its manufacturing footprint during the year with new CKD assembly facilities in Bangladesh and Thailand, enhancing regional access, localisation, and supply agility across key international markets. The Bangladesh unit, developed with IFAD Motors, became its sixth overseas assembly facility, while the Thailand plant marked Royal Enfields first standalone assembly operation in the Asia-Pacific region.

Further strengthening ancillary manufacturing capabilities, the Company also operationalised its Cheyyar facility in Tamil Nadu for chrome plating and allied operations.

These developments reflect Royal Enfields continued focus on scale, operational efficiency, and a resilient global manufacturing ecosystem.

This year marked a major milestone in the Companys manufacturing journey, with production crossing 12,41,256 units, the highest-ever achieved. Manufacturing capabilities were further strengthened with the inauguration of a state-of-the-art control tower enabling real-time monitoring of critical operational parameters, driving improved visibility, responsiveness, and efficiency across operations. These advancements reflect the Companys continued focus on operational excellence, quality, and continuous improvement.

SUSTAINABILITY

As the fourth key pillar of the REBALANCE strategic framework, sustainability remains integral to Royal Enfields purpose.

In FY 2025-26, the Company continued to make meaningful progress towards its Environmental, Social, and Governance (ESG) vision, strengthening its commitment to conscious and responsible business practices across all facets of operations.

1. Green Business Operations

Energy Management

Royal Enfields Energy Management System (EMS) ensures monitoring, control, and optimisation of energy consumption to reduce overall carbon footprint. Royal Enfield has steadily transitioned towards renewable energy, which now contributes to 54% of the energy mix in operations. The Company remains committed to enhancing the share of renewable and cleaner alternative fuels in the overall energy mix. In line with this transition to cleaner energy, the Company commissioned a 1 MW rooftop solar installation in the new Cheyyar plant, operational from May 2025. Green energy usage increased from 50% to 54% over the prior year.

Emission management

During the year, the Company further reduced its emission footprint from 29.1 to 23.5 (tCO^e per motorcycle produced), continuing to explore new ways of achieving resource efficiency and environmental protection. The Company has also disclosed its Scope 1 and 2 emissions as part of the integrated report this year to better estimate the overall emission footprint and draw a path to Net Zero. Focussed interventions helped reduce Scope 1 & 2 emissions by 19% during the year.

Water management

The Company continued to maintain Zero Liquid Discharge across all its operations. It has implemented rainwater harvesting systems and sewage treatment plants, the water from which is used for various applications. EML ensures providing water access to the surrounding community and natural ecosystem. The new Cheyyar facility is water positive and has been operating as a zero liquid discharge plant since inception, underscoring the Companys commitment to responsible resource management.

Waste management

Ensuring a circular economy, the Company adopted the principles of Reduce, Reuse, and Recycle across all operational activities. All facilities are zero liquid discharge factories where wastewater is treated in state-of-the-art STP and ETP plants and reused for irrigation and process top-ups. The Company has significantly reduced plastic consumption in packaging and has achieved zero waste to landfill status. The Company has also commenced the usage of Compressed Biogas in operations at the Vallam Vadagal plant.

Supply and Packaging

To drive a more sustainable value chain, the Company has transitioned to Forest Stewardship Council (FSC) certified suppliers for its carton packaging. During the year, the

Company achieved nearly 100% sustainable packaging across its Genuine Motorcycle Accessories range, with all carton boxes now sustainably sourced. Furthermore, within the parts packaging segment, the Company successfully eliminated 85% of single-use plastic covers, replacing them with biodegradable and compostable alternatives.

Dr. Shroffs Charity Eye Hospital:

Since 1996, a long-standing partnership with Dr. Shroffs Charity Eye Hospital (SCEH) has supported the institutions journey from strengthening governance to enhancing day-to-day clinical operations. During the year, support enabled the installation of over 300 CCTV cameras across the main hospital and its network of 44 vision centres across North India, strengthening safe and secure healthcare delivery for more than 28,000 people. The partnership continues to evolve in line with regional public health priorities.

Royal Enfield Academy for Technical Skills:

The Academy for Technical Skills continued to equip young people in Tamil Nadu with industry-relevant technical training, practical exposure and essential workplace skills. During FY 2025-26, the Academy trained 1,065 candidates and achieved a 99% placement rate across the automotive industry, meeting its annual training target within the first six months. The initiative continues to create sustainable livelihood opportunities while strengthening the future-ready automotive workforce.

2. Brand-led Social Mission

2 projects on Healthcare and Education, which have the higher allocation of CSR spend. Royal Enfields Social Mission stems from the 75-year-old connection with its Spiritual Home of the Himalayas. Operating at the intersection of Culture, Conservation, and Materiality, the mission is on track to meet its long-term vision of partnering 100 Himalayan communities by 2030 towards building climate resilience.

Some of the notable projects and initiatives this year includes:

Himalayan Hub

A collective learning centre dedicated to developing solutions for environmental sustainability in the Indian Himalayan Region. The Hub works to equip Himalayan youth to become leaders in climate change mitigation and adaptation - through fellowships, grants, and structured programmes - while building resilience within their communities.

Green Pit Stops

An initiative that creates livelihood opportunities for local communities while offering environment-friendly amenities to tourists - including clean drinking water, sanitation, waste management, hygienic local food, charging facilities, service check-points, and local handicrafts. These centres are managed by Self-Help Groups (predominantly women) and serve as shared spaces where local communities and travellers can connect. Designed sustainably using vernacular architecture, the pit-stops also function as showcases and marketplaces for local handicrafts, art, and culture.

The Himalayan Knot

A market linkage programme supporting Himalayan artisan communities practising traditional crafts - weaving, knitting, and working with natural fibres such as pashmina, wool, eri silk, and cotton. The programme spotlights their craft through design interventions and communication campaigns, expanding market access and strengthening livelihoods. The programme also supports the conservation of pastures and rangelands, protecting the livestock of vulnerable pastoral communities, and building skills for value-added livelihoods such as dairy and cheese-making, thereby taking a holistic approach to conserve local heritage and reduce out-migration from the Himalayas.

The Great Himalayan Exploration

A behaviour change initiative that raises awareness and positively shapes tourist attitudes on environmental and social issues, this programme creates active opportunities for riders and travellers to engage with and contribute to CSR-led initiatives. Supported by targeted Information, Education, and Communication (IEC) packs, these initiatives include documentation of Intangible Cultural Heritage (ICH) practices in partnership with UNESCO through rider researchers, and working with remote communities.

To expand reach and deepen impact, the programme is scaling its content dissemination efforts in collaboration with National Geographic, set to air on television and JioHotstar. Concurrently, strategic partnerships are being explored with the Wikimedia Foundation, Ministry of Tourism, travel media such as Conde Nast, Himalayan state tourism boards, and academic institutions to amplify the programmes footprint across knowledge, policy, and cultural platforms.

Keystone Species

The programme works to conserve the critical habitat and unique biodiversity in the landscapes inhabited by the Snow Leopard. The species has deep significance for the indigenous and pastoral communities across five states and Ladakh UT and is a keystone species in the high altitude regions of the Himalayas. Its presence and survival directly influences local biodiversity and shapes the population dynamics of other species in the ecosystem.

Beyond the Snow Leopard, the programme extends its reach to the conservation of other critical landscapes, ecosystems, and species in the region besides coastal and aquatic habitat - with community stewardship at the heart of this effort.

Through the Social Mission, Royal Enfield is also aspiring to encourage and inspire one million riders to explore sustainably and Leave every place better.

HUMAN RESOURCES

Over the past year, the Company focussed on three strategic priorities: strengthening employee engagement, building future-ready capabilities, and deepening manufacturing excellence.

Employee Engagement

Royal Enfield continues to cultivate a transparent and synergetic work environment through robust listening mechanisms. Our REConnect Engagement Survey achieved a record 96% participation rate with an engagement score of 89, reflecting deep-rooted brand pride and alignment with our core values. We also launched RE Voice, an AI-enabled continuous listening platform enabling real-time, data-backed interventions by leaders and HR Business Partners.

Capacity Building

During FY 2025-26, we delivered 86,733 training hours, with 63% dedicated to functional reskilling and upskilling, achieving 81% coverage of Staff and executive base.

Fifty global people managers completed Emerging Leaders programTransformational leadership program programmes, 108 plant supervisors completed a customised development programme, and 282 employees completed specialised EV upskilling tracks across key divisions.

Manufacturing Excellence

Our Gurukulam initiative trained 12,167 trainees across plant locations, while our Kaizen culture generated 22,282 incremental improvements and 86 breakthrough projects impacting key operational metrics. Our Quality Circles secured 14 awards, 10 Gold and 4 Silver, reaffirming our commitment to shop floor excellence.

ENTERPRISE RISK MANAGEMENT

The Company follows a comprehensive and structured risk management framework designed to proactively identify, assess, monitor, and mitigate potential risks that could impact its operations or strategic objectives. The Risk Management Committee of the Board, together with the senior management team, periodically evaluates key risks based on their likelihood and potential impact. This enables the formulation of an appropriate mitigation framework with focussed strategies to address these risks.

The key enterprise risks and their mitigation strategies are outlined below:

01 Brand relevance risk due to dependency on ICE platforms and evolving consumer preferences

Capital:	Material Issues:	Mitigation Strategy:
Intellectual, Social, and Relationship	Customer-centricity, Innovation management	The Company continues to invest in strengthening Royal Enfields global brand resonance by engaging with newer and younger audiences. It is actively building deeper emotional and experiential connections by promoting the authentic pleasures of Pure Motorcycling in a contemporary context. Simultaneously, the Company is enhancing the overall customer journey through a modernised, seamless experience - both digitally and physically. With a clear focus on brand evolution, Royal Enfield is poised to spark renewed enthusiasm among global motorcycling enthusiasts, maintaining its distinct identity while adapting to emerging consumer aspirations.

[ 02 Regulatory risk due to evolving global standards and compliance requirements

Capital:	Material Issues:	Mitigation Strategy:
Manufactured	Regulatory compliance, Climate change, Responsible use of materials	The Company has instituted a robust compliance monitoring and risk assessment system to track regulatory developments across all operational geographies. It undertakes proactive identification of potential policy shifts and formulates timely responses to mitigate business impact. Quarterly global compliance reviews are conducted, and certificates are issued to ensure adherence to all applicable rules. A highly experienced homologation team, coupled with technical know-how in global emission norms and engine development, supports compliance in key markets. Additionally, the Companys Advanced Engineering division works ahead of the curve to address upcoming regulations and accelerate high-priority innovation projects through agile development models.

[ 03 Changing consumer behaviour and transition in product preferences

Capital:	Material Issues:	Mitigation Strategy:
Intellectual, Relationship, and Manufactured	Innovation management, Consumer- centricity, Economic performance	In anticipation of evolving customer expectations and shifts in mobility preferences, the Company has laid out a comprehensive, long-term electric vehicle (EV) roadmap. This includes a robust product pipeline aligned to emerging technologies and consumer insights. Continuous investments are being made to support the EV programme and related infrastructure. A dedicated team monitors global market trends and consumer behaviour patterns to guide product innovation and ensure that offerings remain relevant, aspirational, and technologically aligned.

[ 04 Supply chain vulnerabilities and potential disruptions

Capital:	Material Issues:	Mitigation Strategy:
Financial, Manufactured, and Natural	Economic performance, Manufacturing efficiency, Responsible supply chain	To counter the impact of raw material shortages or logistical constraints, the Company has implemented measures such as securing alternative vendors, building strategic inventory buffers, and optimising the variant-feature mix. These steps ensure continuity in manufacturing operations and timely delivery of products. The Company also continuously evaluates its supplier network to identify areas for resilience enhancement and responsiveness across the value chain.

05 Geographic concentration and geopolitical risks

Capital:	Material Issues:	Mitigation Strategy:
Financial, Manufactured	Economic performance, Manufacturing efficiency	To mitigate exposure to geopolitical and regional concentration risks, the Company has diversified its supplier and vendor base across geographies. It has also designed its manufacturing plants in Chennai with modular capabilities to flexibly shift production between models and units as needed. This design enhances agility and operational resilience. To support the expected volume growth in the near future, our manufacturing division is developing a plan for strategic operational decentralisation. This initiative involves setting up a new manufacturing facility in a different state. This move is designed to bring us closer to our primary target market and the crucial two-wheeler supply chain cluster. Additionally, through CKD assembly facilities set up in international markets, the Company is expanding its manufacturing footprint and de-risking operations while serving key global demand centres.

[ 06 Threats to cyber security and data privacy

Capital:	Material Issues:	Mitigation Strategy:
Intellectual	Ethical business practices, Corporate governance	The Company has invested in advanced IT infrastructure, including firewalls, antivirus software, and secure network systems to protect against cyber threats. Regular system updates, network audits, and employee training ensure continued vigilance. Daily backups of critical data across multiple locations safeguard business continuity and data integrity, while response protocols are in place to quickly address any breach attempts.

[ 07 Human capital risk, including succession planning for key roles

Capital:	Material Issues:	Mitigation Strategy:
Human	Talent attraction and retention	Recognising the strategic importance of a skilled and engaged workforce, the Company focusses on capability building and structured talent development initiatives. A succession planning framework has been implemented for key leadership roles, supported by internal talent identification and selective external hiring. Long-Term Incentive Plans (LTIPs) are leveraged to retain critical talent and encourage leadership continuity, while high-potential employees are groomed for broader responsibilities through well-defined development programmes.

[ 08 Profitability risk due to volatility in raw material costs and pricing pressure

Capital:	Material Issues:	Mitigation Strategy:
Financial	Economic performance	The Company maintains strong focus on profitability across both petrol motorcycles and EV verticals. A working group consistently monitors fluctuations in input costs and develops strategies to mitigate their impact. These include alternate sourcing, value engineering initiatives, and continuous cost optimisation efforts. Additionally, the Company evaluates pricing structures and enhances global market penetration to balance the impact of input cost escalations, ensuring a sustainable and profitable growth model.

09 Regulatory risk due to the Digital Personal Data Protection (DPDP) Act, 2023

Capital:	Material Issues:	Mitigation Strategy:
Financial, Ensuring Data privacy	Ethical business practices, Corporate governance	The Digital Personal Data Protection (DPDP) Act, 2023 is now under implementation. The Ministry of Electronics and Information Technology (MeitY) officially notified the DPDP Rules, 2025 on November 14, 2025, which has triggered a definitive "countdown" for all companies operating in India keeping in view of full compliance of it targeted by May 2027. As mitigation action, the company is currently undertaking a project focussed on Gap Assessment and Policy Procedure review. The remediation of identified gaps is targeted for completion by December 2026.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has instituted a robust and well-integrated internal control system designed to ensure operational efficiency, asset protection, accurate financial reporting, and strict compliance with applicable laws and regulations.

This internal control framework serves as a safeguard against unauthorised usage or loss of assets, helps in the early detection and prevention of fraud, and supports precision in financial disclosures. It also enables the Company to address emerging business risks and maintain productivity across operations.

In FY 2025-26, the Company undertook a comprehensive evaluation of its internal controls over financial reporting and concluded that these were adequate and operating effectively. As part of its ongoing commitment to strengthening governance mechanisms, the Company continued its initiative, Internal Control, Centre of Excellence (IC-CoE), a specialised project aimed at enhancing control measures across critical functions. The IC-CoE operates as a centralised expert unit, offering continuous advisory support and facilitating consistent process-level oversight. It works closely with project and process owners to ensure that accountability, control adherence, and governance standards are upheld across the organisation.

The Companys SAP-based Enterprise Resource Planning (ERP) system acts as a critical backbone for enforcing system-driven controls and validations.

This technology-driven approach ensures real-time tracking, data integrity, and minimises manual intervention, thereby reducing risks associated with human error.

Additionally, EML has implemented comprehensive governance, risk, and compliance frameworks that reinforce the effectiveness of its internal control environment.

These frameworks help ensure that the Companys operations align with statutory and regulatory requirements at all times.

An independent Internal Audit team carries out periodic reviews of processes and functions, as per the annual audit plan approved by the Audit Committee. These audits are instrumental in evaluating the health of the control mechanisms and recommending improvements where needed. The statutory auditors also review the adequacy of internal financial controls as part of their audit procedures related to financial reporting.

The Companys Whistle-Blower Policy and Vigil Mechanism further strengthen its governance ecosystem by empowering employees, vendors, dealers, and other stakeholders to report any unethical practices, fraud, or misconduct without fear of retaliation. This encourages transparency, reinforces accountability, and supports a culture of integrity across the organisation.

Crisis Management

The Company has a defined crisis management framework, detailed in a comprehensive handbook. This handbook outlines the overarching process for managing crises, covering actions, escalation protocols, and communication strategies. All relevant stakeholders, including process/ project owners and crisis response team members across various departments, are required to read and understand the processes and escalation matrices within this handbook. This ensures an effective response to any crisis situation.

The timely management and effective communication with stakeholders during a crisis are crucial for minimising the impact on business operations.

FINANCIAL REVIEW

Eicher Motors Limited achieved its highest-ever annual volumes in FY 2025-26 at 1,227,977 units. Revenue for the year increased by 24% year-on-year to 23,408 Crores, marking yet another milestone as the highest-ever annual revenue recorded by the Company.

A great acceptance and rising penetration of aftermarket parts and services, greater availability of genuine motorcycle accessories, and a wider range of apparel underpinned a healthy performance of the allied business. Total revenue from spares and services, apparel, accessories, and others increased to C 3,351 Crores in 2025-26 and contributed to 14.5% of EMLs consolidated revenues.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of the Company increased by 23% to C 5,785 Crores in 2025-26 from C 4,712 Crores in 2024-25. EBITDA percentage for the year was 24.7% in 2025-26 as against 25% in 2024-25.

Consolidated Net Profit After Tax (PAT) increased by 16.5% to C 5,515 Crores in FY 2025-26 from C 4,734 Crores in FY 2024-25. An increase in Revenue, EBITDA, and higher contribution from the Companys JV with Volvo AB - Volvo Eicher Commercial Vehicles have uplifted the profit growth over the last year. As a result, EMLs consolidated EPS (Basic) for the year increased by 16% to C 201.1 per share.

The Companys financial position remains robust with total cash and cash equivalents, and investments (other than in subsidiaries and Joint Ventures) of C 19,091 Crores.

It generated a healthy cash flow from operations at C 4,805 Crores and continued to invest in its future—which includes new product development activities (both petrol motorcycles and EVs) and setting up operation facilities along with a special focus on growing its digital capabilities. The total capital investment for the year stood at C 1,275 Crores.

Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended in 2018, the Company is required to disclose details of significant changes in key financial ratios, defined as a variation of 25% or more compared to the immediately preceding financial year. Accordingly, the key financial ratios reported by the Company are presented below:

	UOM	Standalone	Consolidated
		2024-25	2025-26	2024-25	2025-26
Inventory Turnover Ratio	Times	9.6	10.9	7.1	7.6
Current Ratio	Times	1.7	2.0	1.6	1.9
Trade Payables Turnover Ratio	Times	4.5	5.0	4.4	4.9
Net Capital Turnover Ratio	Times	6.7	4.8	7.0	5.2
Operating Profit Margin	%	25.8	25.6	25.0	24.7
Net Profit Margin	%	23.2	22.2	25.1	23.6
Return on Equity	%	25.0%	25.0%	24.1%	23.8%
Return on Capital Employed	%	28.5	29.5	23.8	24.5
Earnings per share (basic)		156.15	183.8	172.8	201.1
Earnings per share (diluted)		155.80	183.5	172.4	200.7

VE COMMERCIAL VEHICLES LIMITED

Business Environment

India continued to remain among the fastest-growing major economies during FY 2025-26, supported by strong consumer confidence, sustained public infrastructure investments, and stable tax collections. Despite geopolitical uncertainties in West Asia and temporary disruptions in fuel and commodity supplies during March, the economy demonstrated resilience and maintained growth momentum.

The Commercial Vehicle (CV) industry continued to benefit from structural reforms, improving logistics infrastructure, and rising economic activity. Overall CV industry volumes, including exports, grew by 13% year-on-year to reach a new peak of 1.20 Million units.

Government initiatives focussed on improving logistics efficiency, transportation safety, and accelerating clean mobility adoption. Programmes such as PM Gati Shakti, smart tolling systems, the Unified Logistics Interface Platform (ULIP), enhanced PM e-Drive funding, and expanded Production-Linked Incentive (PLI) schemes supported fleet modernisation, technology adoption, and long-term industry growth.

Regulatory and Digital Logistics Shift

The industry also witnessed continued regulatory evolution aimed at improving safety, sustainability, and fleet modernisation. Stricter implementation of vehicle scrappage norms, mandatory air-conditioned cabins for trucks from June 2025, and higher safety standards such as Fire Detection and Suppression Systems (FDSS) in buses are expected to further accelerate replacement demand and raise operational benchmarks across the sector.

VECV Performance

FY 2025-26 marked a landmark year for VECV as the Company crossed the milestone of 1,00,000 annual vehicle sales for the first time, recording sales of 1,03,404 trucks and buses. Volumes grew by 14.7% over the previous year, ahead of the overall industry growth of 13%, reflecting strong execution, customer-centricity, operational excellence, and continued technology advancement.

Key highlights during the year included:

Eicher-branded trucks and buses crossed the 1,00,000-unit milestone, with sales of 1,00,980 units. Including Volvo trucks and buses, total VECV sales stood at 1,03,404 units.

The LMD segment retained market leadership with a 34.9% market share, while the Heavy Duty segment achieved its highest-ever annual sales of 26,867 units with a 9.7% market share.

Bus sales stood at 19,363 units, including 208 electric buses.

The Company launched the Eicher Pro X diesel range, with final assembly carried out at an all-women production line at Bhopal, reinforcing its commitment to workplace inclusion.

Product innovation remained strong with over 100 new models and variants launched, 252 patents filed, and more than 3,300 ideas generated through the innovation platform.

Key launches included the Eicher Pro 8035XM 8x4 mining tipper with AMT and a 29.5 cubic metre body, along with Indias first 25.25-metre Volvo FM 420 road-train trailer configuration.

Electric and LNG offerings were further expanded across truck and bus segments.

The network expanded by 164 touchpoints to reach 1,250 outlets. Company-owned dealer operations grew to 20 main hubs with 140 touchpoints, selling over 17,200 units during the year.

Manufacturing operations achieved record production of 1,02,452 vehicles, supported by automation, advanced robotics, Industrial IoT, AI-driven quality controls, and the Volvo Production System.

Digital and service capabilities continued to strengthen, with the MyEicher platform expanding to over 1,85,000 customers, predictive analytics under Superior Uptime proactively preventing thousands of potential vehicle issues, and Site Support expanding to 430 sites covering over 23,500 vehicles.

Employee engagement improved significantly, with the engagement score increasing to 85 from 80.

The Company received seven recognitions at the 17^th Apollo CV Awards, including

CV Maker of the Year", "Debutant of the Year" for Eicher Pro X,

School Bus of the Year,

LCV Cargo Carrier of the Year (Up to 7.5T),

CV Transport Solution Provider of the Year,

CV Innovation of the Year" for Volvo Road Train, and

CV Communications Excellence of the Year".

Overall, VECV remained agile and customer-focussed while continuing to strengthen its role in modernising commercial transportation in India and beyond.

OUR BUSINESS, MARKET, AND FUTURE PROSPECTS

Trucks and Buses

(i) Eicher Trucks and Buses (ETB)

ETB delivered another record year, crossing the milestone of 1 lakh vehicles produced and delivered during FY 2025-26. The LMD segment (5-18T) further strengthened its leadership position with sales of 46,195 units and a market share of 34.9%, reflecting year-on-year growth of 19.4%.

The HD segment delivered its highest-ever annual sales at 25,155 units, with market share improving to 9.1%. Bus sales stood at 18,651 units, supported by continued scale-up in electric buses.

Operational performance remained strong across manufacturing facilities, with total production reaching

1,02,452 units. Quality and efficiency improvements continued through the use of automation, IoT-enabled systems, AI-based real-time quality control, and the Volvo Production System. The Baggad bus plant also added a dedicated EV assembly facility for 9-metre and 12-metre electric buses.

Small Commercial Vehicle (SCV)

The Eicher Pro X electric mini trucks and newly introduced diesel variants received encouraging market response across launched regions. With the domestic SCV market exceeding 3,50,000 units annually, the Company remains confident that Pro X will emerge as a strong long-term growth driver.

(ii) Volvo Trucks India (VTI)

Volvo Trucks India retained its leadership in the premium heavy-duty truck segment during the year. Sales stood at 1,712 units, with an estimated market share of nearly 78% in the 400+ HP long-haul category. While the mining sector experienced some moderation, demand across other applications remained healthy.

The Company also continued to advance alternate-fuel adoption with deployment of over 50 LNG-powered tractor-trailers in e-commerce fleets. During the year, the "Iron Women" initiative was launched in India to train and employ women heavy truck drivers.

(iii) Volvo Buses India (VBI)

Volvo Buses India delivered its best-ever annual performance with sales of 712 premium coaches, registering growth of 15.2% year-on-year. Growth was supported by recovery in intercity travel and replacement demand. The business added 84 new customers, executed deliveries to major State Transport Undertakings (STUs), and initiated exports of selected chassis and bus bodies from the Hoskote facility.

INTERNATIONAL BUSINESS

International operations delivered strong growth during the year, with exports rising 33.9% to 6,933 units. Growth was driven by deeper market penetration across Asia, Africa, and the Middle East. Euro-V trucks were introduced in select Middle East markets, while connected vehicle and telematics solutions were expanded in countries such as Bangladesh and the UAE.

Progress also continued in Indonesia through establishment of a local subsidiary and operational readiness initiatives. The Company continues to closely monitor developments in West Asia and has appropriate contingency measures in place.

Eicher Engineering Components (EEC)

EEC delivered a breakthrough performance during the year, recording its highest-ever revenue of over 2,700 Crores, reflecting growth of 34%. A new axle and transmission assembly line for Pro X was commissioned within eight months. Operated entirely by women technicians, the axle line supports multiple variants across Eicher truck platforms. Export capabilities were also strengthened through advanced automation initiatives.

VE Powertrain (VEPT)

VEPT delivered 60,300 engines during FY 2025-26, marginally higher than the previous years output of 60,155 engines. Cumulative production since inception has now crossed 4,50,000 engines. The plant continues to focus on operational efficiency and capability enhancement, including development of Euro VI engines and alternate-fuel powertrain solutions.

	Industry	VECV	Market Share	VECV Growth	Industry Growth
Models	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Domestic
Cargo (3.5-5 Tonne)	6,330	6,362	1,594	1,648	25.2%	25.9%	-3.3%	-0.5%
LMD (5.0-18.5 Tonne)	1,32,481	1,07,628	46,195	38,703	34.9%	36.0%	19.4%	23.1%
HD (>18.5 Tonne) Combined Eicher & Volvo	2,76,232	2,46,135	26,867	23,856	9.7%	9.7%	12.6%	12.2%
SCV (2.0 - 3.5 Tonne)	3,89,809	3,37,969	2,452	127	0.6%	0.0%	1830.7%	15.3%
Buses (Combined Eicher & Volvo)	1,00,393	97,134	19,363	20,646	19.3%	21.3%	-6.2%	3.4%
Domestic Total	9,05,245	7,95,228	96,471	84,980	10.7%	10.7%	13.5%	13.8%
Exports	47,032	36,746	6,933	5,177	14.7%	14.1%	33.9%	28.0%
VECV Total	9,52,277	8,31,974	1,03,404	90,157	10.9%	10.8%	14.7%	14.5%
Volvo Brand**
Volvo Trucks	2,078	2,320	1,712	1,819	82.4%	78.4%	-5.9%	-10.4%
Volvo Buses	26,668	28,860	712	618	2.7%	2.1%	15.2%	-7.6%

** Volvo Truck and Bus volumes included in VECV total. Volvo Trucks Market share is in premium niche segment including Chinese competition

Enhanced Customer Experience Through Superior Service, Superior Uptime, and Retail Excellence

The Company continued to strengthen its customer reach and service capabilities through network expansion and digital interventions. During the year, the network expanded to 1,250 outlets, while the Company-Owned Company-Operated (COCO) model was further scaled to strengthen retail execution.

Digital and uptime solutions remained key differentiators. The MyEicher connected platform expanded to over

1,85,000 customers, while predictive analytics under Superior Uptime proactively prevented thousands of potential vehicle issues. Site Support operations also expanded to 430 customer locations, covering over 23,500 vehicles and helping improve fleet uptime and operational efficiency.

Focus on Innovation, Technology Upgrades, and New Products

FY 2025-26 witnessed strong momentum in product development and technology-led innovation across the portfolio. The Company launched over 100 new models and variants, filed 252 patents, and generated more than 3,300 ideas through its innovation platform, strengthening future-readiness and development agility.

The Company also expanded its electric and LNG offerings across truck and bus segments while continuing to introduce first-to-market solutions aligned with evolving customer requirements and modern logistics needs.

Towards a Sustainable Future

The Company continued to advance its green mobility agenda during the year. With over 500 electric buses already operational and more than 30 Million electric kilometres completed, VECV remains committed to accelerating the transition towards cleaner transportation solutions.

Alongside EVs, the Company continues to develop and deploy alternative fuel technologies including CNG, LNG, and hydrogen-based solutions in line with Indias long-term decarbonisation goals.

Subsidiaries, Associate and Joint Venture Companies

During the year, no company was incorporated or ceased to be a subsidiary, associate or joint venture company of the Company.

VECV South Africa (Pty) Ltd

Market conditions remained subdued, particularly in the light and medium-duty segment. Sales during the year stood at 460 units compared to 200 units in the previous year. The business expanded its presence through three new outlets while strengthening parts distribution and service support to sustain aftermarket growth.

VECV Lanka (Private) Limited

Economic conditions in Sri Lanka stabilised during the year, enabling gradual recovery in the CV market following the resumption of imports under revised guidelines. Sales stood stabilised at 287 units. Despite challenging conditions, uninterrupted service and parts support helped strengthen customer loyalty and readiness for future growth.

PT VECV Automotive Indonesia

The Companys Indonesia entry progressed as planned, with assembly setup, distribution logistics, and homologation activities remaining on track. Network development and field trials continued during the year, with operations expected to commence in FY 2026-27.

VE Electro-Mobility Limited

VE Electro-Mobility deployed 79 electric buses under the "Bus as a Service" model for corporate and educational transportation, further strengthening the Companys green mobility initiatives.

VE Connected Solutions Private Limited (VECS)

VECS was established to develop next-generation connected vehicle solutions. During FY 2025-26, the Company delivered approximately 77,000 advanced telematics devices for factory fitment across LMD, Bus, and Pro X platforms. It also developed an integrated ecosystem covering device supply chain management, manufacturing, quality assurance, and device management solutions.

Effective FY 2026-27, VECS has streamlined 100% telematics volumes across all vehicle segments. The Company also delivered DSMS/ADAS compliance solutions aligned to AIS184/188 standards and continues to build capabilities in Software Defined Vehicles, Vehicle Cybersecurity, and Engineering Cloud through strategic partnerships and alliances.