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Eicher Motors: Reports healthy performance in Q4FY25, maintains positive outlook

ICICIdirect Research 16 May 2025 DISCLAIMER

On the consolidated basis, total operating income for the quarter came in at ₹5,241 crore (up 23% YoY) amid healthy Royal Enfield sales volume at 2.83 lakh units (up 24% YoY).

EBITDA in Q4FY25 came in at ₹1,258 crore with corresponding EBITDA margins at 24% (down 16 bps QoQ). Resultant PAT for the quarter stood at ₹1,362 crore (up 27% YoY).

Margin performance on the standalone basis (Royal Enfield franchise) came in marginally below our expectations at 24.7%, however it maintained its focus on absolute profit growth and value addition.

Despite macroeconomic challenges, Eicher remains growth-focused, expanding the middleweight motorcycle segment and strengthening brand positioning globally.
The outlook remains positive with multiple product refreshes, increasing global traction and ramp-up in electric mobility.

Eicher stands well-positioned to sustain its momentum, backed by a strong brand, disciplined cost control, and prudent capital allocation. With leadership transitions in place, Eicher Motors remains well-positioned for long-term growth and market expansion. Hence, we maintain a positive outlook on the company, expecting it to deliver double digit returns in medium to long term.

We have a BUY rating on the stock with a target price of ₹ 6,350, valuing the RE franchise at 32x P/E and VECV at 25x PE on FY27E basis.

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