Eicher Motors shares decline as shrinking margin makes investors nervous; check all Q4 numbers

The stock has declined over 1.5% from its previous close on Thursday.

Eicher Motors reported a 27.2% increase in its consolidated net profit at ₹1,362 crore for the quarter ending March 31, 2025, of the financial year 2024-25. Its net profit for the same quarter last fiscal year was at ₹1,071 crore.

The Royal Enfield maker’s revenue from operations for Q4 FY25 stood at ₹5,241.11 crore, growing 23.1% year-on-year (YoY) from ₹4,256 crore.

During the quarter, the auto firm’s margin shrank 24% YoY as against 26.5% in Q4 FY25. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter under review rose 11.4% YoY to ₹1,258 crore as compared to ₹1,129 crore in the corresponding quarter last fiscal year.

For the full financial year, Eicher Motors' net profit advanced to ₹4,734 crore in contrast to ₹4,001 crore in FY24, registering an 18% growth. Sales jumped 14% to Rs 18,870 crore in FY25 as against ₹16,536 crore in FY24.

The company’s board has recommended a final dividend of ₹70 per equity share with a face value of ₹1 each for the financial year ending March 31, 2025, subject to the approval of the shareholders at the ensuing 43rd Annual General Meeting.

The dividend will be paid within 30 days from the date of shareholders’ approval.

Meanwhile, various brokerages have maintained their outlook for the automaker. Among them, Citi in its report said that Eicher Motors’ EBITDA was slightly below estimate. The demand outlook is positive as management expects the tax cut to bolster urban demand in FY26.

It further believes that volume growth might not percolate down to earnings if the margins remain weak.

“We have had a remarkable year at EML and have reported exceptional performance across both Royal Enfield and VE Commercial Vehicles. In the motorcycle business, the middleweight segment saw a lot of action from our peers. Remaining unfazed and maintaining focus on our strategic goals and community, Royal Enfield stood head and shoulders above everyone else to sell one million motorcycles annually, for the first time in its history,” said Siddhartha Lal, Chairman, Eicher Motors.

Royal Enfield recorded its highest-ever quarterly sales with 280,801 motorcycles, a 23.2% growth over Q4 FY24.

Eicher Motors shares were trading 0.82% lower at ₹5,402 apiece on the NSE at the time of writing this article.

Over the last five trading days, its shares have surged over 2.54%, while for a month’s period, the stock lost 2%.

Since November 18, 2024, which is six months, shares of the firm have climbed over 11%.

The company’s market capitalisation stands at ₹1.48 lakh crore.

Shares of the firm had touched its one-year high of ₹5,906.5 apiece on April 22, 2025, while its 52-week low of ₹4,253.85 was hit on June 4, 2024.