Royal Enfield Drives 15% Jump in Eicher Motors’ Q1 Revenue

1 Aug 2025 , 09:41 AM

Eicher Motors kicked off FY26 with a strong set of numbers, clocking its highest-ever first-quarter revenue and profit, driven by consistent demand for Royal Enfield bikes and a steady performance at VECV.

The company’s consolidated revenue rose to ₹5,042 crore. This is compared to ₹4,393 crore in the same quarter last year, a growth of nearly 15%. Net profit for the quarter stood at ₹1,205 crore. This is up from ₹1,101 crore a year earlier, reflecting stable demand trends and operational efficiency.

EBITDA grew modestly to ₹1,203 crore, against ₹1,165 crore last year. While the margins were steady, some cost pressures were visible on the operating front. Royal Enfield, the group’s iconic motorcycle brand, sold 2.61 lakh units during the quarter, marking a 14.7% year-on-year growth. The Hunter 350 continued to do well in urban markets.

The company also added fresh energy to its lineup by updating the Hunter 350 with modern features. It was unveiled during Royal Enfield’s new street culture events in Mumbai and Delhi.

In overseas markets, Royal Enfield launched the Classic 350 in Nepal, built at its local CKD plant. The updated version came with ABS, an LED headlamp, a gear position indicator, and new trims.

The Himalayan Odyssey ride returned for its 21st edition, taking 77 riders across challenging terrain, including Spiti and Umling La. The brand used this to reinforce its image of exploration and endurance.

VECV, Eicher’s joint venture with Volvo, also posted solid numbers. Revenue rose to ₹5,671 crore, up from ₹5,070 crore last year. Vehicle sales from VECV touched 21,610 units, an increase of nearly 10%. Growth was largely seen in light and medium-duty trucks and buses.

Market share improved to 18.7%, with LMD trucks leading at 34.5%. The bus segment too gained ground, posting 14.8% volume growth. Exports rose over 20%, helped by growing acceptance of Eicher’s electric Pro X trucks in global markets. Deliveries in the small CV (2.0–3.5T) category gathered pace.

VECV’s EBITDA jumped 32.6% to ₹511 crore, compared to ₹385 crore a year ago. However, its profit after tax was lower due to a one-off deferred tax reversal that had bumped up last year’s figure.

On the lifestyle front, Royal Enfield launched a sustainable apparel collection, using recycled and natural materials. This was part of its Green Pursuit initiative. The company also unveiled a collaboration with The Great Frog, releasing limited-edition merchandise and a custom Super Meteor 650, shown at London’s Bike Shed Moto Show.

Managing Director B. Govindarajan said the company remains focused on long-term brand building, backed by innovation, rider engagement, and expanding global footprint.

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