Eicher Motors Q3 earnings: Net profit rises 21% to ₹1,421 crore, board approves capacity expansion for Royal Enfield

The Delhi-based company's revenue from operations rose 23% to ₹6,114 crore in the October-December period from ₹4,973 crore in the year-ago period.

The company reported strong operational performance as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumped 30% to ₹1,557 crore from ₹1,201 crore. Its EBITDA margin improved by 130 basis points to 25.46%.

Eicher Motors' board gave its approval for the capacity expansion for Royal Enfield.

Currently, Eicher Motors has an existing capacity of around 14.6 lakh motorcycle units per year across all plants. Total capacity will go up to 20 lakh motorcycle units per year across all plants. The ramp-up will happen in a phased manner starting from Q1FY2026-27 and is expected to be completed in FY2027-28, Eicher Motors said.

The capacity expansion will entail investments worth ₹958 crore for brownfield expansion at the company’s plant at Cheyyar, Tamil Nadu, Eicher Motors added.

During the quarter, Eicher Motors provided an amount of ₹55.45 crore for the implementation of new labour codes, which came into effect from November 21, 2025.

"Effective November 21, 2025, the Government of India notified four New Labour Codes, consolidating 29 existing labour laws. Based on an assessment of the impact of these Codes, the Group has provided for an amount of ₹55.45 crore, as an exceptional item of a non-recurring nature, in the financial results for the quarter and nine-month period ended December 31, 2025," Eicher Motors said in a regulatory filing.

Eicher Motors shares ended 1.32% higher at ₹7,290 ahead of its earnings announcement.