EICHER MOTORS TOTAL OPERATING INCOME FOR THE QUARTER CAME IN AT RS 5241 CRORE

News: 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). Share of profits from the VECV arm stood at ₹248 crore with EBITDA margins at 10.3% (up 150 bps QoQ). Gross margins declined due to old inventory provision (20bps effect) & model and variant mix (30bps effect). For FY25 total operating income came in at ₹18,870 crores (up by 14% YoY) with EBITDA at ₹4,712 crores (up by 9% YoY) & margins at 25% (down by 120 bps YoY). Net profit for the year stands at ₹4,734 crores (up by 18% YoY).

View: Margin performance on the standalone basis (Royal Enfield franchise) came in marginally below our expectations at 24.7% (down 20 bps QoQ) amidst high other expenses. Margins were impacted modestly by product mix and input costs, but the company 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. VECV outperformed the industry with record volumes and expanding profitability, underpinned by strong execution, market share gains across segments (notably 36% in LMD trucks), and diversification into alternative fuel vehicles. 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. 

Impact: Positive