According to Eicher Motors, capacity development at the company’s facility in Cheyyar, Tamil Nadu, will require investments totaling ₹958 crore for brownfield expansion.
On Wednesday, February 11, a day after the company’s December quarter earnings were released, Eicher Motors’ stock saw its largest one-day rise in more than five years. Eicher Motors’ stock surged to a new 52-week high of ₹7,792.50, up 6.8%, the biggest since November 13, 2020. Amidst a surge in trading activity, Eicher Motors’ shares rose as much as 6.78% on the BSE.
Following market hours on Tuesday, the manufacturer of Royal Enfield motorcycles announced a consolidated net profit of ₹1,421 crore for the third quarter of the current fiscal year, which represents a 21% rise over the ₹1,170 crore for the same period the previous year. The capacity increase proposal was also authorized by the company’s board.
In the October-December period, the Delhi-based company’s operating revenue increased by 23% to ₹6,114 crore from ₹4,973 crore in the same time last year.
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 30% to ₹1,557 crore from ₹1,201 crore, indicating outstanding operational success. Its EBITDA margin increased to 25.46%, a gain of 130 basis points.
The board of Eicher Motors approved Royal Enfield’s capacity growth.
Across all plants, Eicher Motors can currently produce over 14.6 lakh motorcycles annually. The combined capacity of all plants would increase to 20 lakh motorcycles annually. Starting in Q1FY2026-27, the ramp-up will take place gradually and should be finished in FY2027-28, according to Eicher Motors.
According to Eicher Motors, the capacity expansion will require investments of ₹958 crore for brownfield development at the company’s facility in Cheyyar, Tamil Nadu.
We will be able to satisfy the growing current and anticipated future demand thanks to this investment, which will increase our yearly manufacturing capacity. We are guaranteeing a quicker capacity ramp-up and cost-effective operations by expanding our current Cheyyar plant. In reference to the capacity expansion plan, B Govindarajan, Managing Director and CEO of Eicher Motors, stated, “This project is in line with our continuous growth focus and highlights our dedication to the changing needs of our global community.”
Royal Enfield sold 3,25,773 motorcycles during the quarter, a 21% increase over the 2,69,039 motorcycles sold during the same period the previous year. According to a press statement from Eicher Motors, VE Commercial Vehicles (VECV) sold 26,086 vehicles in the third quarter, up from 21,010 units the year before.
The third-quarter operating revenue of its commercial vehicle division, VECV, was ₹7,019 crore, up 21% from ₹5,801 crore, and the third-quarter EBITDA increased 26% to ₹652 crores from ₹517 crores in the same period last year.
In order to adopt the new labor laws, which went into effect on November 21, 2025, Eicher Motors contributed ₹55.45 crore.
Compared to the typical trading volume of 3.09 lakh shares, the trading volume of Eicher Motors shares increased by 3.1 times to 9.62 lakh shares, indicating higher than usual trading activity.
Up to 96,000 shares were exchanged on the BSE, compared to an average of 10,000 shares per day over the previous two weeks.
Eicher Motors was the NIFTY50 index’s top gainer as of 10:01 am. The stock was up 6.8% at ₹7,774.50, outpacing the index’s 0.07% decline.
