Eicher Motors Limited

Eicher Motors Limited reported a record Q4 FY26 consolidated revenue of INR6,080 crores, with an EBITDA of INR1,514 crores and PAT of INR1,520 crores. For the full FY26, consolidated revenue grew to INR23,408 crores, EBITDA reached INR5,785 crores, and PAT stood at INR5,515 crores. The combined revenue of EML and VECV crossed INR50,000 crores for the first time in FY26, marking a stellar year with solid growth overall.

Royal Enfield achieved over 1.2 million motorcycle sales in FY26, marking its second consecutive year crossing 1 million units. Domestic sales grew 23% to 1.1 million units, while international volumes increased 20% to 120,634 units. The company celebrated 125 years of pure motorcycling, noting that 1 in 3 customers is now below 25 years old, reflecting strong appeal to a younger demographic. The Meteor 350 crossed 6 lakh sales, and the Himalayan 450 recorded 53% growth to over 38,000 retails globally.

VECV delivered a record 103,404 units in FY26, growing almost 15% over the previous year, with broad-based strength across all verticals. In Q4 FY26, VECV's consolidated revenue was INR8,280.6 crores, with EBITDA of INR921.5 crores and PAT of INR595.8 crores. Heavy-duty truck sales grew 14.1% to 25,155 units, achieving a 9.1% market share, and exports surged 33.9% to 6,933 units despite a challenging external environment.

Eicher Motors announced a brownfield expansion of INR958 crores at its Cheyyar facility in Tamil Nadu, which will increase annual capacity from 1.4 million to 1.6 million units by June/July 2026, and further to 2 million units by Q2 FY28. Additionally, the company has signed up for a greenfield facility in Andhra Pradesh on 261 acres, with a new plant expected to be fully operational within 24-30 months, supporting long-term growth beyond 2 million units.

The company entered the electric space with the launch of the Flying Flea, C6, a City Plus electric mobility brand, in Bangalore in April 2026, receiving a very exciting initial response. New product launches and upgrades in FY26 included the 2026 Guerrilla 450 Apex, 2025 Hunter 350, Meteor 350, Goan Classic 350, and Himalayan Mana Black, all contributing to volume gains. The Bullet 650 is also on the cards with dispatches already started, indicating continued product innovation.

EML announced a new 50-50 joint venture with Volvo to enter the vehicle financing business in India, with an investment of up to INR750 crores for EML's stake. This JV aims to leverage Volvo's global financial services expertise and Eicher's market understanding to offer captive financing for Eicher, Volvo, and Royal Enfield customers. The venture has the potential to grow assets under management to INR9,000-10,000 crores over the next 5 years, enhancing the value chain and customer experience.

The company anticipates a material cost level impact of 3-3.5% in Q1 FY27 due to commodity inflation. To mitigate this, Eicher implemented a blended price increase of 70 basis points in January and another 1.75% in April, alongside intensified value engineering, cost reduction exercises, and austerity measures. Management expressed confidence in mitigating these pressures to a maximum extent, despite the ongoing global uncertainties.