Eicher Motors Q2 Results: Margins narrow from last year, stock falls after earnings miss

Shares of Eicher Motors Ltd. the manufacturer of the Royal Enfield motorcycle, fell as much as 2% on Thursday, November 13, in response to the September quarter results reported by the company, that were either in-line, or lower than the CNBC-TV18 estimates.Eicher Motors reported a net profit of ₹1,369 crore during the June quarter, a growth of 24.5% from last year, but lower than the CNBC-TV18 poll of ₹1,451 crore.

Its revenue increased by 45% from the year-ago quarter to ₹6,176 crore, which was marginally higher than the CNBC-TV18 poll of ₹6,132 crore. Revenue growth for the quarter was aided by strong volumes.

For the quarter, Eicher’s Royal Enfield volumes increased by 43% from last year and 23% sequentially. CV volumes were up 6% last year but flat sequentially.Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 39% on a year-on-year basis to ₹1,513 crore, which was in-line with the CNBC-TV18 poll estimate of ₹1,516 crore.

EBITDA margin for the quarter narrowed by 100 basis points to 24.5% from 25.5% last year and lower than the CNBC-TV18 poll of 24.7%. Margins were dragged due to an inferior product mix and high raw material costs.

Shares of Eicher Motors are trading 1.2% lower after the earnings announcement at ₹6,789.5. The stock has risen nearly 40% so far in 2025.