Eicher Motors posted its highest-ever consolidated net profit of Rs 1,520 crore in the fourth quarter of FY26, up 12% from Rs 1,362 crore in the corresponding period last year, driven by record motorcycle sales at Royal Enfield and continued growth in its commercial vehicle business.
Last year’s tax cuts continued to boost demand for its high-margin 350 cc motorcycles, supporting the company’s growth during the quarter.
Driven by record Q4 sales of 313,811 motorcycles, up 12% over Q4 FY25, the company reported all-time highs in net profit, revenue, and earnings before interest, taxes, depreciation, and amortisation (Ebitda).
During the January-March quarter, Eicher Motors reported revenue from operations of `6,080 crore, up 16% from the year-ago period, while Ebitda rose 20% to Rs 1,514 crore.
VECV recorded quarterly sales of 33,976 vehicles, compared with 28,675 units in the same quarter last year.
For the full financial year FY26, Eicher Motors reported its highest-ever revenue from operations at Rs 23,408 crore, up 24% year-on-year. Ebitda stood at a record Rs 5,785 crore, growing 23%, while profit after tax rose 17% to an all-time high of Rs 5,515 crore.
Flying Flea EV Debuts
Royal Enfield crossed annual sales of 1 million motorcycles for the second consecutive year, with total volumes rising 22% year-on-year to 1,227,977 units in FY26. Domestic sales grew 23% to 1,107,343 units, while exports increased 20% to 120,634 units.
“We achieved over one million motorcycle sales for the second consecutive year and recorded our best-ever festive season, with record volumes in both domestic and international markets. We also marked a major milestone in April 2026 with our entry into the electric mobility space via the launch of the Flying Flea C6,” said B Govindarajan, managing director of Eicher Motors Ltd and chief executive officer of Royal Enfield.
The company has also lined up a total capital expenditure of around Rs 3,400 crore for FY27, including Rs 2,200 crore for Royal Enfield and Rs 1,000-1,200 crore for VE Commercial Vehicles.
Navigating Global Headwinds
VECV reported its highest-ever annual revenue from operations at Rs 27,076.6 crore, reflecting 15% growth over FY25. EBITDA stood at Rs 2,562.6 crore, while profit after tax rose to Rs 1,471 crore. Annual vehicle sales increased 14.7% to 103,404 units.
“Crossing the milestone of 100,000 vehicles in a year is a significant achievement for VECV and reflects the trust our customers have placed in our products and solutions. This milestone also fulfills a key part of the original vision set at the inception of the Volvo–Eicher joint venture, underscoring the strength and long-term strategic direction of our partnership,” said B Srinivas, managing director and chief executive officer, VECV.
Meanwhile, Royal Enfield is also evaluating the possibility of setting up a completely knocked down (CKD) assembly facility in Mexico after the country increased import tariffs on motorcycles.
“The Mexico tariff has been slightly changed. We are studying that. Is there a requirement for us to have a manufacturing facility or not? We are constantly evaluating it,” Govindarajan said.
He said tariffs in Mexico had increased from 15% to 35% from January, prompting the company to reassess its strategy for the market. Royal Enfield currently operates around seven CKD assembly plants globally and could replicate the model in Mexico if required.