Board approves Rs 1,225-crore Phase-I investment for Andhra Pradesh plant as Royal Enfield and VECV post record first-quarter sales

Eicher Motors (EML), the maker of Royal Enfield motorcycles, posted a 21 per cent rise in net profit during the first quarter of financial year 2026-27 (Q1 FY27) to Rs 1,463 crore, up from Rs 1,205 crore in the April-June quarter of FY26.

Revenue from operations rose 32 per cent year-on-year (Y-o-Y) to Rs 6,632 crore. Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 32 per cent to a record Rs 1,591 crore from Rs 1,203 crore in the corresponding quarter of the previous financial year.

The rise in net profit was driven by improved sales, with Royal Enfield recording its highest-ever quarterly sales of 332,940 motorcycles, up 27 per cent from 261,326 motorcycles in the corresponding quarter.

The board of directors approved an investment of Rs 1,225 crore for Phase I of a greenfield expansion in Andhra Pradesh, which, at full utilisation, can produce an additional 450,000 motorcycles a year. The capacity addition is expected to be completed during FY30, subject to market conditions.

VE Commercial Vehicles (VECV) recorded its highest-ever first-quarter sales of 24,815 vehicles, up from 21,610 vehicles a year earlier. VECV’s revenue from operations in Q1 FY27 stood at Rs 6,610 crore, up 16.6 per cent from Rs 5,671 crore. Ebitda for the quarter rose 6.1 per cent to Rs 541 crore from Rs 511 crore a year ago. Profit after tax stood at Rs 300 crore, compared with Rs 288 crore last year.

B Govindarajan, managing director of Eicher Motors and chief executive officer of Royal Enfield, said, “This quarter was historic for Royal Enfield as we commenced deliveries of the Flying Flea C6 electric motorcycle. The early response to the FF.C6 has been highly positive, reinforcing our vision of creating a new category of premium city-plus electric mobility. We also strengthened our portfolio with the launch of the iconic Bullet on the 650cc platform.”

“We are pleased to have delivered our best-ever first quarter, with sales of 24,815 units, growing 14.8 per cent year-on-year, while maintaining our number one position in the LMD truck market. Beyond the numbers, we continued to drive modernisation in the Indian CV sector. The launch of the Volvo FMX Edge is set to transform mining productivity by combining optimised payload capability with superior safety, uptime and lifecycle value,” said B Srinivas, managing director and chief executive officer of VECV.

As part of its long-term growth strategy, Royal Enfield announced plans to acquire a land parcel in Tada, Andhra Pradesh, for a new greenfield manufacturing facility. With a planned investment of around Rs 2,500 crore, to be implemented in phases, the project will strengthen the company’s manufacturing capacity to meet future market demand.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not sharechart. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

Stock market

Call or whatsapp: +91 9099315511

www.sharechart.co.in