Mumbai: Eicher Motors shares recorded their best single-day performance in more than five years on February 11. The stock jumped nearly 6.8 percent and touched a fresh 52-week high of Rs 7,792.50.
Heavy trading activity supported the rally. Trading volumes surged sharply, showing strong investor interest after the company announced strong quarterly results.
Strong Profit And Revenue Growth In Q3
The Royal Enfield maker reported strong financial performance for the December quarter.
The company posted a consolidated net profit of Rs 1,421 crore, up 21 percent from Rs 1,170 crore last year.
Revenue from operations increased 23 percent to Rs 6,114 crore compared to Rs 4,973 crore in the same quarter last year.
Operational performance was also strong. EBITDA rose 30 percent to Rs 1,557 crore, while EBITDA margin improved to 25.46 percent, showing better efficiency and cost control.
Royal Enfield Sales Continue To Grow
Royal Enfield remained the main growth driver. Quarterly motorcycle sales rose 21 percent to 3,25,773 units, compared to 2,69,039 units last year.
The company is seeing strong demand both in India and global markets, helping overall performance.
Big Capacity Expansion Plan Announced
The board approved a major expansion plan for Royal Enfield production.
Current production capacity is around 14.6 lakh motorcycles per year. This will increase to 20 lakh motorcycles annually.
The expansion will start from Q1 FY27 and is expected to complete by FY28.
The company will invest Rs 958 crore in expanding its Cheyyar plant in Tamil Nadu. The expansion will help meet growing demand and improve production efficiency.
Commercial Vehicle Business Also Performs Well
Eicher’s commercial vehicle arm, VECV, also reported strong numbers.
Revenue rose 21 percent to Rs 7,019 crore, while EBITDA increased 26 percent to Rs 652 crore. Vehicle sales grew to 26,086 units, showing steady demand in the commercial vehicle segment.
Higher Trading Activity Supports Stock Rally
Trading volumes jumped sharply. On NSE, volumes rose more than 3 times compared to average levels.
The stock became the top gainer in the NIFTY50 index, even as the broader market remained slightly weak.
Outlook Remains Positive
Strong demand, expansion plans and steady financial growth are keeping investor confidence high in Eicher Motors.
Disclaimer: This article is for informational purposes only. It is not investment advice. Stock market investments are subject to risks. Investors should consult financial advisors before making any investment decisions.
