This article first appeared on GuruFocus .
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Consolidated Revenue (Q4):Rs 6,080 crores
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EBITDA (Q4):Rs 1,514 crores
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Profit After Tax (Q4):Rs 1,520 crores
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Annual Revenue (FY26):Rs 23,408 crores
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Annual EBITDA (FY26):Rs 5,785 crores
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Annual Profit After Tax (FY26):Rs 5,515 crores
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Royal Enfield Motorcycle Sales (FY26):12.27 lakh units
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Domestic Sales Growth (Royal Enfield):23% to 1.1 million units
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International Sales Growth (Royal Enfield):20% to 1,20,634 units
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VECV Unit Sales (FY26):1,03,404 units
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VECV Revenue (Q4):Rs 8,280.6 crores
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VECV EBITDA (Q4):Rs 921.5 crores
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VECV Profit After Tax (Q4):Rs 595.8 crores
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VECV Annual Revenue (FY26):Rs 27,076.6 crores
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VECV Annual EBITDA (FY26):Rs 2,562.6 crores
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VECV Annual Profit After Tax (FY26):Rs 1,471 crores
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Dividend:Rs 82 per share
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Release Date: May 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Eicher Motors Ltd ( BOM:505200 ) achieved record-setting performances with Royal Enfield selling over 1.2 million motorcycles and VECV delivering 100,000 units for the first time.
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The combined revenue of EML and VECV crossed 50,000 crores for the first time, showcasing strong financial growth.
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Royal Enfield celebrated 125 years of pure motorcycling and launched the Flying Flea C6 electric motorcycle, marking its entry into the electric mobility space.
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The company announced a capacity expansion at its plant in Tamil Nadu and plans for a new greenfield facility in Andhra Pradesh, indicating long-term growth strategies.
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Eicher Motors Ltd ( BOM:505200 ) is entering the vehicle financing business through a joint venture with Volvo, leveraging Volvo's global expertise and Eicher's local market knowledge.
Negative Points
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The company faces challenges with commodity price inflation, impacting material costs by 3 to 3.5%, which they are working to mitigate through pricing and cost reduction strategies.
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There were temporary production disruptions due to manpower availability issues related to elections and LPG shortages.
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The international market, particularly Europe, is experiencing degrowth, affecting fresh billing due to pre-registered vehicles not being cleared.
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The company is cautious about global uncertainties, geopolitical developments, and supply chain volatility, which could impact future performance.
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Despite strong growth, the company acknowledges that the replacement cycle for motorcycles has yet to fully kick in, indicating potential future demand challenges.
Q & A Highlights
Q: Can you provide insights on the demand for premium motorcycles in India and your capacity expansion plans? A: Balakrishnan Govindarajan, Managing Director and CEO of Royal Enfield, noted that the premium motorcycle segment is experiencing strong growth, with Royal Enfield achieving a 23% increase in sales in FY26. The company plans to expand capacity to 1.6 million units by July 2026 and further to 2 million units by FY28 through a brownfield expansion in Tamil Nadu. Additionally, a greenfield project in Andhra Pradesh is planned to support future growth.
Q: How is Eicher Motors managing commodity cost pressures and what impact does this have on margins? A: Vidhya Srinivasan, CFO, explained that Eicher Motors mitigated a 90 basis point impact from commodity costs in Q4 through a price increase and cost reductions. For Q1, a 3-3.5% material cost impact is expected, with a 1.75% price increase already implemented. The company is focusing on value engineering and cost-saving measures to manage these pressures.
Q: What is the outlook for Royal Enfield's growth in FY27, particularly in international markets? A: Balakrishnan Govindarajan stated that while specific guidance isn't provided, the demand remains strong with a 31% growth in April 2026. Internationally, Brazil is a key growth market, with a 71% increase in sales. The company is cautiously optimistic about international markets despite macroeconomic challenges.
Q: What are the strategic benefits of the new vehicle financing joint venture with Volvo? A: Vinod Aggarwal, Vice Chairman, highlighted that the joint venture will enhance customer financing options, leveraging Volvo's expertise in financial services. This initiative aims to improve customer satisfaction and potentially increase market share for Eicher Motors and Royal Enfield products.
Q: Can you discuss the product pipeline and any upcoming launches for Royal Enfield? A: Balakrishnan Govindarajan mentioned that the company is on track with its product timelines, including the launch of the Flying Flea electric motorcycle. The Bullet 650 is also set to be released soon. The focus remains on the 350cc, 450cc, and 650cc platforms, with new products being introduced to cater to evolving market demands.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
