Eicher Motors Q2FY26: Royal Enfield’s 6,172-Crore Ride – When the Bullet Flies, EBITDA Follows

1. At a Glance

If there’s one company in India that can sell nostalgia at ₹2 lakh a piece and still get customers to queue up, it’sEicher Motors. The parent ofRoyal Enfieldand co-parent ofVE Commercial Vehicles(VECV) has fired another bullet straight into the heart of the markets — literally. InQ2 FY26, Eicher posted arecord revenue of ₹6,172 crore,EBITDA of ₹1,512 crore, andPAT of ₹1,369 crore, riding on the back of327,067 Royal Enfield motorcyclesthundering across highways and Instagram reels alike.

At amarket cap of ₹1.95 lakh crore, Eicher now sits in the elite biker’s club of global motorcycle legends — but without the Harley-Davidson debt hangover. WithROE of 24.1%andROCE of 29.8%, the company practically prints cash from Chennai to Colombia. Thestock is up 20.3% in the last three months, proving that the only thing faster than a Classic 350 is Eicher’s share price rally.

And as theBhagavad Gitasays — “You have the right to perform your duty, but not to the fruits of your action.” But clearly, someone forgot to tell Eicher investors, because the fruits this time look sweet, chrome-plated, and yielda 0.98% dividend.

2. Introduction

Eicher Motors is the corporate version of a guy who peaked in college, then reinvented himself as a fit biker dad who does podcasts about mindfulness. Born in1982, it went from making farm tractors to ruling the asphalt withRoyal Enfield, now theglobal leader in middleweight motorcycles (250cc–750cc).

But Eicher isn’t just about macho moustaches and Himalayan road trips. Its joint ventureVECV with Volvo ABis quietly pulling weight (literally) — producing trucks, buses, and components that keep India’s logistics juggernaut rolling.

Over the past decade,Siddhartha Lalturned this once-sleepy brand into a cult movement. Royal Enfield isn’t just a bike anymore — it’s anidentity crisis on wheelsfor millennials who can’t afford a Harley but want to feel something.

The company’s numbers back the swagger —sales up 25.4%, PAT up 19.7%, and profit growth over the lastfive years at 21% CAGR. Even foreign funds can’t resist the charm —FII holding at 26.98%screams global love for Indian thumpers.

So buckle up, because this isn’t just a balance sheet — it’s a biker’s autobiography told in crores.

3. Business Model – WTF Do They Even Do?

Let’s decode Eicher’s empire of engines.

a) Royal Enfield – The Cult FactoryEicher manufactures and sells mid-weight motorcycles under theRoyal Enfieldbrand. ThinkClassic 350,Bullet 350,Meteor 350,Hunter 350,Scram 411, andHimalayan 450. Basically, every model sounds like a Marvel superhero with dad issues.

But it’s not just bikes. Royal Enfield now sellsriding apparel, helmets, and lifestyle gear, converting every biker into a walking billboard. Even theirnon-motorcycling segment— spares, apparel, and services — contributes15% of FY24 revenue, proving Eicher can monetize nostalgia better than a Bollywood remake.

b) VE Commercial Vehicles (VECV) – The Volvo JugalbandiIn aSwedish-Indian alliancesmoother than IKEA furniture, Eicher owns54% of VECV, which makes trucks, buses, and auto components. It also sells and services Volvo trucks in India. VECV revenue grew72% between FY22 and FY24, powered by a 50% jump in vehicle sales and 15% higher realizations.

c) Geographic SpreadDomestic operations form88% of FY24 sales, while exports account for 12% — a dip from 17% in FY22, because apparently Americans prefer Harley over Himalayans.

d) Manufacturing MightRoyal Enfield hasthree Chennai plants (12 lakh bikes/year),five CKD units(Brazil, Thailand, Argentina, Colombia, Nepal), and two R&D centres (UK and India). VECV has a90,000-unit truck plantin Pithampur, an expanding bus plant in Baggad, and a newBhopal facilityfor 40,000 trucks annually.

Capex? ₹808 crore in FY24, because good things come to those who invest in bigger engines.

4. Financials Overview