Eicher Motors Q2 preview: Profit seen up by 5.3%, revenue growth at 8.7% driven by higher ASPs and export mix

Eicher Motors Limited is set to announce its Q2 FY25 earnings on November 13, with strong growth expectations supported by a rise in exports and higher average selling prices (ASPs). 

According to estimates by Zee Business, the company’s consolidated revenue is projected to grow by 8.7 per cent year-on-year (YoY) to Rs 4,474 crore, compared to Rs 4,115 crore in the same period last year.

The company’s profit after tax (PAT) is forecasted to increase by 5.3 per cent YoY to Rs 1,070 crore, up from Rs 1,016 crore. The EBITDA is expected to rise by 11.3 per cent to Rs 1,210 crore, with the EBITDA margin likely expanding to 27 per cent from 26.4 per cent, driven by better realisation and a strong product mix.

Key factors 

Royal Enfield, a key segment for Eicher Motors, reported flat sales volumes with a slight decline of 0.6 per cent to 2.28 lakh units. However, an increase in ASPs—expected to rise by 10.3 per cent to Rs 1.89 lakh per unit—helped offset the volume pressure. The growth is attributed to a higher contribution from premium models and exports, particularly in the 350cc category.

The company’s commercial vehicle (CV) arm, VE Commercial Vehicles (VECV), may face margin pressures due to sluggish domestic sales.

Analysts anticipate muted performance in the CV segment as demand remains tepid.

Investors will closely watch management commentary on new product launches and the demand outlook in domestic and export markets, especially given recent guidance cuts in the two-wheeler segment by peers like Bajaj Auto.

Stock movement 

As of 11:55 am on November 12, Eicher Motors shares were trading slightly higher at Rs 4,718.05 on the NSE, marking a year-to-date gain of over 15 per cent.