Eicher Motors Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 14
- 2 min read
by KarNivesh | 14 October, 2025
Comprehensive Overview
Eicher Motors Limited (EML) is among India’s leading automotive manufacturers, best known for its iconic Royal Enfield motorcycles and its joint venture VE Commercial Vehicles (VECV) with the Volvo Group. In FY 2025, EML achieved outstanding results, reporting total revenue of ₹18,978 crores (₹18,974 crores or $2.28 billion converted) and a net profit of ₹4,734 crores (₹47,227 crores or $569 million converted). The company’s stock, priced at ₹7,021.50 (₹7,008), reflected a 45.6% year-on-year growth, showcasing investor confidence and robust operational performance.
Business Segments and Expansion
Eicher Motors operates through two main segments-Royal Enfield, which contributes around 85% of revenue, and VECV, contributing 15%. Royal Enfield maintains a dominant 90% market share in India’s 250cc–750cc segment. The brand expanded its product portfolio during 2024–25 with launches such as the Guerrilla 450, Classic 650, and Scram 440, and is preparing to enter the EV space with the Flying Flea lineup by 2026. Internationally, Royal Enfield exports to over 65 countries, with assembly units established in Nepal and Thailand and export volumes rising by nearly 30% in FY 2025.
Economic and Market Factors
India’s automotive sector shows a strong 75% correlation with GDP growth. With India’s GDP expected to grow at 6.7% in FY 2025–26, EML is well positioned for steady demand. Rural recovery, strong private consumption, and declining steel prices have boosted profitability. The two-wheeler market in India is projected to reach ₹3.05 lakh crores ($36.78 billion) by 2025, growing at a CAGR of 3.18% through 2030.
Financial Performance
Eicher Motors has exhibited exceptional financial strength, maintaining an almost debt-free balance sheet with a debt-to-equity ratio of just 0.01. Long-term debt stands at ₹650 crores and short-term debt at ₹120 crores. Its five-year revenue CAGR (FY21–FY25) was 20.1%, while net profit CAGR was 40.1%. For FY 2025, EBITDA stood at ₹5,892 crores with a margin of 31.04%. The company’s Return on Equity (ROE) was 24.18%, and Return on Capital Employed (ROCE) was 30.02%, indicating efficient capital utilization.
Shareholding and Valuation
Promoters hold 49.07% of shares through the Simran Siddhartha Tara Benefit Trust, while FIIs and mutual funds together account for 37%. The company maintains no pledged shares, ensuring governance transparency. With a market capitalization of ₹1,90,372 crores (₹1,902,400 crores converted from $22.9 billion) and a P/E ratio of 45.81x, EML trades at a premium to peers such as Bajaj Auto and Hero MotoCorp, justified by its superior brand positioning and growth trajectory.
Future Outlook
Eicher’s growth will be driven by sustained product innovation, premium motorcycle segment expansion, and entry into electric mobility. The management expects double-digit volume growth in the 250cc+ category and improved international performance. However, risks include rising competition from Hero-Harley and Bajaj-Triumph alliances, market concentration in India, and potential valuation corrections due to high multiples.
With its rich heritage, strong financials, and visionary leadership under Siddhartha Lal, Eicher Motors is poised to remain a cornerstone of India’s premium motorcycle and commercial vehicle markets, blending legacy with innovation to drive future growth.
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