Company set to expand Royal Enfield manufacturing capacity upto 20 lakh over the next two years

  • Revenue from Operations grew 23%, EBITDA up 30% and Profit After Tax rose 21% year-on-year
  • Royal Enfield registered motorcycle sales at 325,773 units, up 21% year-on-year
  • VECV registered sales of 26,086 units with a growth of 24%. Revenue from operations stood at ₹7,019 crores up 21% over last year.

Chennai : Eicher Motors Limited (EML) today announced unaudited consolidated financial results for the quarter ended December 31, 2025, reporting its best ever third quarter performance.

For Q3 FY 2025-26, EML reported Revenue from operations at ₹6,114 crores with a growth of 23% from the corresponding quarter of FY 2024-25. EBITDA grew 30% to its highest-ever at ₹1,557 crores and Profit After Tax rose 21% to ₹1,421 crores from ₹1,171 crores last year.

Royal Enfield recorded quarterly sales of 325,773 motorcycles, up 21% from 269,039 motorcycles sold during Q3 FY 2024-25. VE Commercial Vehicles (VECV) recorded sales of 26,086 vehicles in the third quarter, up from 21,010 vehicles in the previous year.

VECV’s Revenue from operations in Q3 FY 2025-26 stood at ₹7,019 crores, up 21% from ₹5,801 crores. EBITDA for the third quarter rose 26% to ₹652 crores, from ₹517 crores a year ago. Profit after tax stood at ₹338 crores as against ₹299 crores last year.

Board approves proposed investment for brownfield capacity expansion at Royal Enfield

EML’s Board also approved a proposal for capacity expansion at Royal Enfield, which will be achieved through a brownfield expansion at the Cheyyar manufacturing facility in Tamil Nadu, taking annual production capacity upto 20 lakh units from the existing 14.6 lakh units. The company is set to invest an estimated ₹958 crores for the brownfield expansion.

Speaking on Royal Enfield’s performance, B. Govindarajan, Managing Director – Eicher Motors Ltd., and Chief Executive Officer – Royal Enfield said, “This quarter continues the steady momentum that we have built over the previous six quarters and disciplined execution across Eicher Motors, with encouraging performance from both Royal Enfield and VECV. At Royal Enfield, we continued to see healthy demand across markets, alongside consistent progress in strengthening our product pipeline, capacity building, and engagement with the riding community. The quarter was also significant from a brand and strategy perspective, as we kickstarted celebrations for our historic 125-year milestone at EICMA 2025. With the unveiling of Bullet 650 and Flying Flea S6 and the launch of Himalayan Mana Black and Meteor 350 Sundowner, we showcased our legacy-powered yet innovative mindset. Subsequently, we continued a strong on-ground expression of that journey at Motoverse in Goa, bringing together riders and partners to celebrate the Pure Motorcycling ethos that defines Royal Enfield. We also expanded our cultural footprint beyond motorcycling with the second edition of ‘Journeying Across the Himalayas’, which grew in scale and impact. Our performance over the quarter, particularly during the festive months, is the outcome of consistent efforts, with the GST rationalisation further improving accessibility in certain segments.”

Speaking about the capacity expansion, he added, “This investment will augment our annual production capacity and allow us to meet the expanding existing and projected future demand. By scaling our existing Cheyyar plant, we are ensuring a faster capacity ramp-up and cost-efficient operations. This project is aligned with our consistent growth focus and underscores our commitment to the evolving needs of our global community.”

Speaking on VECV’s performance Vinod Aggarwal, MD and CEO – VECV and Vice Chairman – Eicher Motors Ltd. said “The third quarter was marked by a strong recovery in the Commercial Vehicle industry following a prolonged monsoon. GST-reforms, coinciding with the traditional festive buying season, helped revive consumer sentiment and consumption-led demand for transportation. VECV delivered its best-ever third quarter performance, with sales of 26,086 vehicles, representing a growth of 24.2% over the corresponding period last year. We sustained our industry leadership in the LMD truck segment (5–18T GVW) while also recording growth across Buses and Heavy Duty Truck segments. The Service and Parts business also grew during the quarter, reflecting higher service penetration and vehicle utilization across our truck and bus park. During the quarter, we expanded our product portfolio with the launch of the diesel variant of the Eicher Pro X small truck, purpose-built for city and near-city applications, as well as the LNG-powered Volvo Road Train, representing a paradigm shift in long-haul distribution. Continuing our focus on uptime and customer centricity, we added 25 new touchpoints across India, expanding service coverage at an average pace of two locations per week. For the quarter, EBITDA stood at 9.5% and EBIT at 6.8%, reflecting focus on price realization supported by enhanced value delivery to our customers”