Eicher Motors shares clock best day in over five years, hit fresh 52-week high; here is why

Shares of Eicher Motors posted their best single day gain in over five years on Wednesday, February 11, a day after it reported December quarter earnings. Eicher Motors shares climbed as much as 6.8%, the most since November 13, 2020, to hit a fresh 52-week high of ₹7,792.50. On the BSE, Eicher Motors shares as much as 6.78% amid spike in trading activity.

The maker of Royal Enfield motorcycle post market hours on Tuesday reported a consolidated net profit of ₹1,421 crore in the third quarter of the current financial year, marking an increase of 21% from ₹1,170 crore in the same period last year. The company’s board also approved the capacity expansion plan.

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.

“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,” B Govindarajan, Managing Director and CEO of Eicher Motors said on the capacity expansion plan.

During the quarter, Royal Enfield recorded quarterly sales of 3,25,773 motorcycles, up 21% from 2,69,039 motorcycles sold during the same period last year. VE Commercial Vehicles (VECV) recorded sales of 26,086 vehicles in the third quarter, up from 21,010 vehicles in the previous year, Eicher Motors said in a press release.

Its commercial vehicle arm, VECV’s revenue from operations in third quarter came in at ₹7,019 crore, up 21% from ₹5,801 crore and EBITDA for the third quarter rose 26% to ₹652 crores, from ₹517 crores a year ago.

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

Eicher Motors shares were witnessing heavier than usual trading activity as trading volume spiked by 3.1 times to 9.62 lakh shares compared with an average trading volume of 3.09 lakh shares.

On the BSE, as many as 96,000 shares changed hands compared with an average of 10,000 shares traded daily in the past two weeks.

As of 10:01 am, Eicher Motors was top gainer in the NIFTY50 index and the stock traded 6.8% higher at ₹7,774.50, outperforming the NIFTY50 index which was down 0.07%.