Eicher Motors, the parent company of Royal Enfield, has announced its financial results for the fourth quarter of fiscal year 2025, reporting a consolidated net profit of ₹1,362.15 crore, a 27% increase compared to ₹1,070.45 crore in the same quarter last year. This performance has surpassed analysts' estimates, driven by robust sales volumes and improved realizations.

The company's revenue from operations also saw a significant rise, reaching ₹5,241.11 crore, a 23.15% increase from ₹4,256.04 crore in the corresponding quarter of the previous fiscal year. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹1,258 crore. For the entire financial year 2025, Eicher Motors' consolidated revenue was ₹18,870 crore, up 14.1% year-over-year, with EBITDA increasing by 8.9% to ₹4,712 crore. Net profit for the year reached ₹4,734 crore, an 18% increase from ₹4,001 crore in FY24.

Royal Enfield's sales volume reached new heights in FY25, hitting 1,002,893 units, a 10% year-over-year increase. This is the first time Royal Enfield has crossed the 1 million mark in annual sales. The company achieved its highest-ever quarterly sales with 280,801 motorcycles, a 23.2% growth over the fourth quarter of FY24. VE Commercial Vehicles (VECV) also reported strong performance, with revenue from operations of ₹23,548 crore, up 7.7% from FY24, and sales volume rising to 90,000 units, a 5% increase.

In light of these results, the Eicher Motors board has recommended a final dividend of ₹70 per equity share.

Stock Performance and Analyst Recommendations

Following the earnings release, Eicher Motors' stock experienced some movement. On May 14, 2025, the stock was trading at ₹5,451.00, a 0.56% increase compared to its previous closing price.

Analysts' recommendations on Eicher Motors' stock are mixed. According to one source, 8 analysts have given a "strong buy" rating, 8 have given a "buy" rating, 12 recommend "hold," 2 suggest "sell," and 4 have a "strong sell" recommendation. Another source indicates immediate support for the stock price at ₹5,311.83 and immediate resistance at ₹5,627.33.

Factors to Consider

• Positive Performance: Eicher Motors has demonstrated strong financial performance in Q4 FY25, with significant growth in profit and revenue. Royal Enfield's record sales volume further underscores the company's market position.
• Dividend Announcement: The recommended dividend of ₹70 per share is an attractive proposition for investors.
• Mixed Analyst Sentiment: The varied analyst recommendations suggest that the stock's future performance is subject to different interpretations and market conditions.
• Market Volatility: Eicher Motors' stock has exhibited volatility, as indicated by its beta.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.