Eicher Motors Q1 Results FY27: Net Profit Rises 21% To ₹1,463 Crore, Royal Enfield Posts Highest-Ever Quarterly Sales

Eicher Motors Q1 Results FY27: The two-wheeler and truck maker Eicher Motors on Wednesday reported its financial results for the quarter ended June 30, 2026 (Q1 FY27), with revenue and profit rising on the back of record quarterly sales at Royal Enfield and continued growth at VE Commercial Vehicles (VECV).

The maker of popular motorcycles under the brand name Royal Enfield company reported a 21% year-on-year increase in consolidated net profit to ₹1,463 crore for the April-June quarter, compared with ₹1,205 crore in the corresponding period last year.

Revenue from operations rose 31.5% to ₹6,632 crore from ₹5,042 crore a year earlier. EBITDA increased 32% to ₹1,590 crore from ₹1,203 crore, while the EBITDA margin improved marginally to 23.98% from 23.86% in the year-ago quarter.

Royal Enfield Records Best-Ever Quarter

Royal Enfield recorded its highest-ever quarterly sales of 332,940 motorcycles, up 27% from 261,326 units sold in the corresponding quarter last year.

VECV, Eicher Motors' commercial vehicle joint venture, also delivered its best-ever first-quarter performance. Revenue from operations increased 16.6% to ₹6,610 crore from ₹5,671 crore a year earlier, while EBITDA rose 6.1% to ₹541 crore from ₹511 crore. Profit after tax stood at ₹300 crore, compared with ₹288 crore in Q1 FY26.

VECV sold 24,815 vehicles during the quarter, up from 21,610 vehicles a year earlier.

Board Approves Andhra Pradesh Manufacturing Facility

The board approved an investment of ₹1,225 crore for the first phase of a greenfield manufacturing facility in Andhra Pradesh. At full utilisation, the plant will add 4.5 lakh motorcycles of annual production capacity and is expected to be completed during FY2029-30, subject to market conditions.

With the Phase I expansion, Royal Enfield's total production capacity across all manufacturing plants will increase to around 24.5 lakh motorcycles per year.

The company also said its ongoing brownfield expansion at the Cheyyar plant in Tamil Nadu is expected to be completed by FY28, taking combined production capacity across the Oragadam, Vallam Vadagal and Cheyyar facilities to around 20 lakh motorcycles annually.

Eicher Motors Q1 Results FY27: Management Commentary

B. Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield, said the company carried forward the momentum from a record FY26 into the new financial year, with Royal Enfield achieving its highest-ever quarterly sales and VECV delivering its strongest first-quarter performance.

He said the quarter also marked the commencement of deliveries for the Flying Flea C6 electric motorcycle and added that the company remains optimistic about sustaining growth, supported by upcoming product launches and brand initiatives.

VECV Managing Director and CEO B. Srinivas said the company delivered its strongest first quarter with record sales while retaining its leadership position in the light and medium-duty truck segment.

Eicher Motors Q1 Results FY27: Kotak Neo Research View

Kotak Neo Research maintained its ADD rating on Eicher Motors and revised its fair value to ₹8,200, compared with the current market price of ₹7,779.

The research report said consolidated revenue and EBITDA came in ahead of its estimates, supported by higher average selling prices and continued premiumisation. It expects export volumes to improve further on strong demand from Latin America and ASEAN markets, alongside a gradual recovery in developed markets. The report also highlighted the company's capacity expansion plans and potential entry into the 250cc motorcycle segment as long-term growth drivers.

On the downside, the report noted that commodity inflation resulted in a 4-4.5% increase in material and processing costs during the quarter, putting pressure on gross margins. It added that higher raw material and employee costs could keep near-term profitability under pressure despite healthy revenue growth.

Eicher Motors Share Price

Eicher Motors shares closed 0.73% lower at ₹7,779 on the National Stock Exchange on Wednesday ahead of the earnings announcement. The company's market capitalisation stood at ₹2.14 lakh crore as of July 29, 2026.

On Thursday, the stock traded higher following the results. At the time of writing, Eicher Motors shares were trading at ₹7,853, up ₹74, or 0.95%, from the previous close.

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