- Eicher Motors posted its highest-ever Q2 revenue driven by strong Royal Enfield demand
- Royal Enfield saw 23% H1 growth and 18% volume increase in the current fiscal year
- Bookings rose 20%, with channel stock at a low seven-day supply level
Eicher Motors Ltd. rode to its best-ever second quarter on a robust demand for Royal Enfield. The auto manufacturer maintained an upward trajectory in the second quarter, and clocked its highest revenue ever, according to CEO B. Govindarajan.
"At Royal Enfield, the robust demand across domestic and key international markets drove our highest-ever quarterly and festive wholesales across September and October. This reflects the strength of our portfolio and growing affinity for the brand, even as market conditions continue to evolve," he stated.
Royal Enfield recorded a 23% growth in the first half of the current fiscal, across both domestic and national markets, Govindarajan outlined during the company's post-earnings conference call. From the start of the fiscal till now, Royal Enfield has registered 18% volume growth.
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Bookings have grown 20%, with channel stock left for only seven days as of now, the MD and CEO highlighted.
The demand remained resilient despite growing inflationary pressures and rising commodity costs. "Commodity inflation still remains strong, especially due to high steel prices," the management told NDTV Profit, adding that the company has done advanced purchasing and have undertaken internal cost reduction plans. At present, Eicher said that it is doing price increase in a calibrated way
There has not been any change in rural or semi-urban demand, according to the Eicher, who emphasised that the rural demand is "not slowing down". Regardless, the company said that it is monitorung key rural economic parameters.
Eicher Motors Q2 FY27
Eicher Motors Ltd. reported a 15% increase in net profit to Rs 1,573 crore in the September quarter of financial year 2027 (Q2FY27), compared with Rs 1,369 crore in the corresponding quarter last year (Q2FY26).
Net profit came in slightly below the estimate of Rs 1,605 crore. Revenue from operations or top line increased 20.3% year-on-year (YoY) to Rs 7,422 crore in Q2FY27, from Rs 6,172 crore in the year-ago period.
At the operating level, earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 16.4% to Rs 1,760 crore, compared with Rs 1,512 crore a year ago, and below the estimate of Rs 1,784 crore. Ebitda margin contracted to 23.7% from 24.5% in the year-ago period, versus an estimate of 24%.
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