Latest news with #VECV
Mint
7 days ago
- Automotive
- Mint
Eicher Motors is chasing growth. That will crimp margin in the short term
Eicher Motors Ltd's June quarter (Q1FY26) performance was supported by rising premium motorcycles volumes, higher rural penetration and continued export momentum. Royal Enfield (RE) volumes surged 17% year-on-year to 265,528 units. The company indicated that demand remains steady, particularly among younger buyers and in rural India. Realizations dropped 1% year-on-year to ₹184,855 per vehicle, but were up 2.4% sequentially. Put together, consolidated net sales grew 15% year-on-year to ₹5,042 crore. Eicher's product strategy is simple: keep it fresh and premium. Recent launches, including the Classic 650 and the refreshed Hunter, have seen good traction. The company is now doubling down on key models like the Classic and Bullet, with refreshed variants, personalized accessories and festive-timed add-ons. Marketing spends are also rising to support these upcoming electric motorcycle brand has already generated strong interest. Yes Securities' analysts expect RE's overall volumes to grow at about 7% CAGR over FY25-27. 'Recent launches could be an inflection point for RE as a completely new and improved platform should drive efficiencies. However, we remain watchful of the domestic average monthly run-rate going ahead," they said in a 1 August report. Read more: Is the worst over for the Hindustan Unilever stock? A positive factor is the rising share of rural regions in the sales mix, now close to 50%. Urban markets remain uneven, but there were some green shoots in Q1 despite no deep discounting. Instead, Eicher is leaning on brand equity, retail expansion and new offerings to draw in aspirational buyers. Exports are another bright spot, continuing to post strong growth. Nepal and Bangladesh continue to perform well for the company, and the Himalayan has found success globally. Eicher is expanding CKD (completely knocked down) operations in Brazil, widening its reach in Latin America and moving to a company-owned distribution model in Europe. The commercial vehicle business Volvo Eicher Commercial Vehicles (VECV) continues to pull its weight, reporting almost 10% volume growth in Q1 thanks to solid market share in light and medium-duty trucks and buses and 2% realization growth. Ebitda margin rose 140 basis points (bps) to 9%. What could go wrong? First, VECV could now be in the mature phase of the CV cycle. Second, commodity inflation is a big risk. Q1 saw a 19% uptick in raw material costs. Eicher absorbed some of it through cost optimization efforts and limited price hikes. It also deferred certain new launch-related expenses, aiding margin. Still, consolidated Ebitda margin at 23.9%, declined 270 bps from a year ago. Read more: Hyundai Motor's margin muscle strong, but steering growth is the hard part The management will prioritize volume growth over short-term margin gains. 'Hence, we expect margins to remain under pressure from here on, as any benefit from an improving mix (higher spares and apparel sales) is likely to be invested by RE in demand-generation activities," said Motilal Oswal Financial Services. 'This is clearly visible in the past few quarters, where volume has seen a healthy pick-up, albeit at the expense of margins." Eicher plans to keep investing in market activation, especially for refreshed models like the Hunter. Meanwhile, the shortage of rare earth materials hurt production in Q1. Eicher has since transitioned to alternative materials and vendors, normalising output. With capacity utilisation at 85–90% across Eicher's 1.2 million units base, the company is prioritising modular expansion and de-bottlenecking. Any capex for FY26 will largely go toward new product development. To be sure, at about 28x FY27 estimated earnings, the stock trades below its 10-year average. Still, expected margin pressure may potentially hamper earnings growth in the coming quarters, keeping sharp upsides in the stock at bay.
Business Standard
01-08-2025
- Automotive
- Business Standard
Eicher Motors jumps as CV sales climbs 7% YoY in July'25
Eicher Motors added 2.41% to Rs 5,602.60 after the company's unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 7.4% year-on-year jumped in commercial vehicle (CV) sales to 7,115 units in July 2025. Domestic sales increased by 6.1% to 6,410 units and total exports surged 32.5% to 530 units in July 2025 over July 2024. Further, the companys monthly motorcycle sales in July 2025 stood at 88,045 units, which is higher by 31% compared with 67,265 units in the same month a year ago. Sales of motorcycle models with engine capacity up to 350 cc jumped 34% to 76,047 units, and sales of motorcycle models with engine capacity exceeding 350 cc surged 12% to 11,998 units in July 2025 over July 2024. The international business recorded sales of 11,791 units in July 25, up by 95% compared with 6,057 units sold in the same period last year. Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles which operates in India's commercial vehicle space. The companys consolidated net profit jumped 9.42% to Rs 1,205.22 crore in Q1 FY26 as against Rs 1,101.4 crore posted in Q1 FY25. Total revenue from operations rose 14.76% year on year to Rs 5,041.84 crore in the quarter ended 30 June 2025.
Business Standard
01-08-2025
- Automotive
- Business Standard
Eicher Motors gains after Q1 PAT climbs 9% YoY to Rs 1,205 cr
Eicher Motors added 2.71% to Rs 5,618.75 after the company's consolidated net profit jumped 9.42% to Rs 1,205.22 crore in Q1 FY26 as against Rs 1,101.4 crore posted in Q1 FY25. Total revenue from operations rose 14.76% year on year to Rs 5,041.84 crore in the quarter ended 30 June 2025. Profit before tax (PBT) jumped 10.54% YoY to Rs 1,592.99 crore in Q1 FY26. The company reported an EBITDA of Rs 1,203 crore in Q1 FY26, marking a 3.26% year-on-year increase. However, the EBITDA margin declined to 23.9% in Q1 FY26, compared to 26.5% in Q1 FY25. During the quarter, Royal Enfield recorded sales of 261,326 motorcycles, representing a 14.7% increase from 227,736 units sold in Q1 FY25. VE Commercial Vehicles (VECV) reported revenue from operations of Rs 5,671 crore in Q1 FY26, up 11.9% from Rs 5,070 crore in the same quarter of FY25. EBITDA for the quarter rose 32.6% to Rs 511 crore, compared to Rs 385 crore a year earlier. VECV sold 21,610 vehicles during the quarter, an increase from 19,702 vehicles sold in Q1 FY25. B Govindarajan, managing director of Eicher Motors and chief executive officer of Royal Enfield, commented on the companys performance, At Eicher Motors, we had a solid start to the year, with encouraging growth across both Royal Enfield and VECV. We continue to build consistent momentum in volumes, profitability, and the strength of our overall portfolio. At Royal Enfield, we sustained our growth momentum in the first quarter, driven by a continued focus on product innovation, immersive riding experiences, and a deeper expression of pure motorcycling. The refreshed Hunter 350 remains a key growth driver, both in terms of volumes and community engagement. Advancing our global ambitions, we strengthened our presence in the SAARC region and expanded our portfolio in Nepal with the locally assembled Classic 350. With a refreshed line-up of motorcycles and a growing ecosystem of curated rides and culture-first experiences, we are shaping a vibrant and inclusive motorcycling movement. VECV has also delivered consistent growth, supported by a strong product portfolio and a sharp understanding of Indias evolving commercial mobility needs. Our ongoing investment in sustainable and efficient transport solutions positions us well for the future. As we move forward, our commitment to long-term value creation remains strong driven by customer-centric innovation, global ambition, and meaningful brand experiences at every level. Vinod Aggarwal, MD and CEO of VECV and vice chairman of Eicher Motors, commented on VECVs performance: VECV delivered its best-ever first quarter with 21,610 units sold in Q1 FY26, up 9.7% year-on-year, broadening its footprint in a largely flat market. Overall market share improved to 18.7%, compared to 17.3% last year, driven by continued leadership in LMD trucks with a 34.5% share, and strong performance in buses, where total bus volumes grew 14.8% and market share rose to 21.5%. Exports increased by 20.5% over the previous year. Deliveries of the all-electric Eicher Pro X in the SCV segment (2.03.5T) continue to gain momentum. Heavy-duty volumes were marginally lower due to a smaller total market, despite market share gains. Our connected vehicle solution, My Eicher, now connects 150,000 customers, representing 350,000 vehicles. VECV reported strong revenue growth and expanded profit margins, supported by better volumes, pricing, and cost discipline. Profit after tax (PAT) was lower compared to the previous year, primarily due to a one-off impact in Q1 FY25 related to deferred tax reversal. Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles which operates in India's commercial vehicle space.
Hindustan Times
01-08-2025
- Automotive
- Hindustan Times
Royal Enfield drives Eicher Motors' Q1 FY26 gains, VECV posts strong revenue
Eicher Motors Limited (EML) has reported its first-quarter FY2025–26 financial results with record-high consolidated revenue and significant gains in both of its two flagship businesses— Royal Enfield and VE Commercial Vehicles (VECV). Both verticals saw growth, but Royal Enfield continued to be the prime driver of momentum, backed by high domestic sales and growing international reach. Both verticals saw growth, but Royal Enfield continued to be the prime driver of momentum, backed by high domestic sales and growing international reach. Royal Enfield maintains growth trajectory In Q1 FY26, Royal Enfield retailed 261,326 motorcycles, up by a 14.7 per cent increase over the 227,736 motorcycles sold in the previous year in the same quarter. The growth in volumes helped Eicher Motors clock ₹5,042 crore in consolidated revenue from operations—its highest-ever for the first quarter—reflecting a 14.8 per cent year-on-year rise. Profit after tax stood at ₹1,205 crore, up 9.4 per cent from the previous year. Royal Enfield's performance was bolstered by multiple product and cultural initiatives. The company launched the 2025 Hunter 350 at its inaugural street culture festival, HunterHood, in Mumbai and Delhi. The new model gets new colour schemes, better ergonomics, a slip-assist clutch, and LED lighting without compromising on its signature 349cc J-series engine. Internationally, Royal Enfield established itself further in South Asia by locally producing and introducing the Classic 350 in Nepal. The motorcycle is now equipped with new safety and connectivity features, such as dual-channel ABS and a USB Type-C charger, designed for the international markets. Community-building continued to be the focus of the brand, highlighted by the success of the 21st Himalayan Odyssey—a 18-day, 2,600 km motorbike ride through Ladakh and Spiti. In parallel, Royal Enfield introduced a collaborative collection with The Great Frog at the London Bike Shed Moto Show and launched a sustainable apparel range under its "Green Pursuit" initiative, using eco-friendly materials. Also watch: Super Meteor vs Interceptor: Which Royal Enfield 650cc bike should you pick VECV Posts strong revenue VE Commercial Vehicles (VECV), Eicher's commercial vehicle arm, posted a revenue of ₹5,671 crore for Q1 FY26, marking an 11.9 per cent increase over the same period last year. While these numbers are not consolidated in Eicher's overall revenue, VECV's contribution was reflected in the group's profit after tax. The business sold 21,610 vehicles in the quarter, up from 19,702 a year ago. Despite a largely flat market, VECV grew its market share to 18.7 per cent from 17.3 per cent last year. Its leadership in the Light and Medium Duty (LMD) truck segment continued, with a 34.5per cent share, while total bus volumes rose 14.8 per cent , boosting its market share in that category to 21.5 per cent. Exports also grew by 20.5per cent year-on-year. Electrification is gradually entering the fold, with growing deliveries of the all-electric Eicher Pro X in the Small Commercial Vehicle (SCV) segment. Meanwhile, the company's connected fleet solution, 'My Eicher," now supports 150,000 users and over 350,000 vehicles. However, VECV's profit after tax was lower compared to the same quarter last year, primarily due to a one-time deferred tax reversal. Nevertheless, the company reported a healthy 32.6 per cent increase in EBITDA, citing improved volumes, pricing, and cost discipline. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
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Business Standard
31-07-2025
- Automotive
- Business Standard
Eicher Motors Q1 net rises 9% to Rs 1,205 cr on record Royal Enfield sales
Eicher Motors reported a 9.4 per cent rise in consolidated net profit to Rs 1,205 crore for the first quarter of FY2025–26, compared to Rs 1,101 crore in the same period last year. The growth was driven by record revenue and robust vehicle sales by both Royal Enfield and VE Commercial Vehicles (VECV). The company posted its best-ever Q1 revenue from operations at Rs 5,042 crore, up 14.8 per cent from Rs 4,393 crore in the year-ago quarter. EBITDA stood at Rs 1,203 crore, up 3.2 per cent from Rs 1,165 crore. Royal Enfield sold 261,326 motorcycles during the quarter, a 14.7 per cent year-on-year increase from 227,736 units in Q1 FY2024–25. Managing Director of Eicher Motors and CEO of Royal Enfield, B Govindarajan, said the brand sustained its growth momentum through product innovation and a continued focus on immersive riding experiences. 'The refreshed Hunter 350 continues to be a key marker of growth for us, both in terms of volumes and community engagement,' Govindarajan noted. He also highlighted the expansion in the SAARC region and the launch of the locally assembled Classic 350 in Nepal as part of the company's global ambition. VE Commercial Vehicles (VECV), a joint venture of Eicher Motors, posted revenue of Rs 5,671 crore in Q1 FY26, a rise of 11.9 per cent from Rs 5,070 crore a year ago. EBITDA surged 32.6 per cent to Rs 511 crore from Rs 385 crore. VECV sold 21,610 vehicles in the quarter, up 9.7 per cent year-on-year from 19,702 units. Vinod Aggarwal, managing director and CEO of VECV and vice-chairman of Eicher Motors, said VECV delivered its best-ever Q1 performance. Market share rose to 18.7 per cent from 17.3 per cent a year earlier, driven by 34.5 per cent share in light and medium-duty (LMD) trucks and a strong 14.8 per cent volume growth in buses. The bus segment's market share rose to 21.5 per cent. While VECV's revenue and EBITDA are not included in Eicher Motors' consolidated figures, the company's share of profits from the joint venture is accounted for as a single line item in the consolidated profit after tax. The strong performance of both Royal Enfield and VECV reinforces Eicher Motors' continued growth trajectory across its core segments.
