Eicher Motors Ltd (EICHERMOT): Q2 FY27 results

Charts:

(1) 5 quarters revenue & PAT with EPS

(2) FY23–FY26

(3) margins

(4) volumes & EBITDA

Quality of earnings

• Volume-led growth. Royal Enfield sold 3.77 lakh motorcycles, its highest quarterly sales ever (company statement), up 15%. Revenue grew faster (+20%), suggesting better prices or mix (my view).
• Margins slipped slightly: EBITDA margin was 23.7% vs 24.5% a year ago (my calculation). Coverage gives no reason.
• Other income has been about a quarter to a third of PBT in recent quarters (₹486–675 cr) [3]; this quarter's figure wasn't in coverage.
• No one-offs reported in coverage.

Margins (Chart 3)

EBITDA margin: 24.5% → 25.5% → 24.9% → 24.0% → 23.7% (my calculation) . A gentle downward drift over the year.

Positives

• Record Royal Enfield volumes
• Revenue +20%

Concerns

• Margin lowest in five quarters (my calculation)
• Profit growth (15%) behind revenue growth (20%)

Things to track in Q3 FY27

1. Festive-season Royal Enfield volumes
2. EBITDA margin vs 24%
3. Export growth
4. VECV (truck JV) contribution

Not a buy/sell recommendation. I am not a SEBI-registered analyst. Facts are sourced; opinions are labelled.