Eicher Motors Q2 Results: Profit Up 24%, Revenue Jumps 45%
Eicher Motors delivered one of its strongest quarterly performances in recent years, reporting a 24% YoY rise in consolidated net profit to ₹1,369 crore for Q2FY26. Its highest-ever quarterly revenue from operations reached ₹6,171 crore, marking a sharp 45% YoY increase supported by demand strength, GST benefits, and new product momentum. Royal Enfield also posted its best-ever quarterly motorcycle sales, delivering 327,067 units, again rising 45% YoY.
During the post-results briefing, management highlighted that the recent GST cut for sub-350cc motorcycles boosted accessibility and lifted footfalls across dealerships. At the same time, the GST hike on above-350cc models slowed premium-category sales, creating a structural divergence within the motorcycle portfolio.
What Drove Eicher’s Strong Q2 Performance
Multiple growth catalysts shaped the quarter. Royal Enfield reported its strongest festival season ever, reaching record festive-period sales of 249,000 units, supported by buoyant demand in the 350cc segment. B Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, said customer interest spiked significantly after the GST reduction, boosting affordability and accelerating replacement demand.
The company’s growth was broad-based. Both Royal Enfield and VE Commercial Vehicles (VECV) contributed to the surge, reflecting healthy urban and rural demand patterns. Sequentially, profit rose 13%, while revenue increased 22%, signalling continued momentum after a strong Q1.
VE Commercial Vehicles also delivered a solid performance. Vinod Aggarwal, MD and CEO of VECV, said the business achieved its best-ever Q2 deliveries in truck and bus categories. Eicher retained its leadership position in light and medium duty trucks and continued to gain traction in heavy-duty vehicles. Aggarwal noted that GST rationalisation strengthened consumer sentiment, improved freight movement, and stimulated commercial vehicle demand.
The GST shift, however, created a mixed impact. The cut on sub-350cc models fuelled strong growth for core Royal Enfield products. In contrast, the increased GST on models above 350cc softened demand in premium categories. According to management, this divergence could influence long-term portfolio strategy and segment investment.
How Royal Enfield and VECV Performed This Quarter
According to the company’s investor presentation, Royal Enfield strengthened its leadership in the mid-size motorcycle segment, maintaining an 84% share in H1FY26, backed by a deep retail presence of more than 2,000 touchpoints across India. Its global business also remained a contributor, with operations across 60+ countries, supported by 7 CKD (Completely Knocked Down) assembly plants and technology centres in India and the UK.
VECV also posted a stable operational quarter. The division recorded Q2 volumes of 21,901 units, marking a 5.4% YoY increase, while H1 volumes reached 43,511 units, up 7.5% YoY. In the light and medium-duty (LMD) truck segment, VECV sold 10,096 units, achieving a market share of 34.8%, compared to 36.4% last year. Heavy-duty truck volumes reached their highest-ever Q2 level at 5,915 units, rising 3.5% YoY. The bus division reported 3,368 units, lower than last year's 3,984 units, reflecting a 15.5% decline.
Exports were an important bright spot, with 1,823 units shipped, translating to a 61.3% YoY jump, driven by improved demand from key international corridors. VECV also continued scaling its electric mobility platform, delivering 244 units of the Eicher Pro X EV in Q2 and 436 units year-to-date. Meanwhile, the aftermarket business sustained its growth path, with spare parts revenue rising to ₹724 crore, an 11.8% increase over last year.
Together, Royal Enfield and VECV’s performance showcases balanced growth across motorcycles, trucks, buses, electric mobility, and exports during the quarter.
How Regulatory Shifts Are Shaping Eicher’s Road Ahead
The GST rationalisation rollout was a key theme throughout the quarter. While the tax cut strengthened demand for sub-350cc motorcycles, the tax hike on larger models created an immediate slowdown in premium demand. Management said this imbalance could shape domestic strategy unless reforms move toward uniformity.
Eicher, alongside industry body SIAM (Society of Indian Automobile Manufacturers), is engaged in discussions with the government to advocate for a uniform 18% GST rate for all motorcycle categories. The company believes such a move will boost domestic sales, unlock economies of scale, and allow Indian manufacturers to compete more aggressively in international markets.
Conclusion
Eicher Motors’ Q2FY26 results underline the company’s ability to scale its operations, respond to policy changes, and harness demand across two critical mobility segments. With record motorcycle sales, strong commercial vehicle performance, and favourable taxation in key categories, the company enters the next quarter with positive momentum. As GST shifts reshape market dynamics and product mix, the key question now is: Can Eicher sustain this growth trajectory as domestic and export markets evolve?
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