During the quarter, profit before exceptional items and tax stood at Rs 1,848.65 crore in Q3 FY26, compared to Rs 1,460.82 crore recorded in the same period a year ago. The company had reported an exceptional loss of Rs 55.45 crore in the corresponding quarter of the previous fiscal year, arising from a one-time provision made following the notification of the four New Labour Codes by the Government of India, effective November 21, 2025.

The company reported an EBITDA of Rs 1,557 crore in Q3 FY26, marking a 29.6% year-on-year increase.

During the quarter, Royal Enfield recorded its quarterly sales volume of 325,773 motorcycles, up 21% from 269,039 motorcycles sold during Q3 FY 2024-25.

VE Commercial Vehicles’s (VECV) revenue from operations in Q3 FY 2025-26 stood at Rs 7,019 crore, up 21% from Rs 5,801 crore. EBITDA for the third quarter rose 26% to Rs 652 crore, from Rs 517 crore a year ago. Profit after tax stood at Rs 338 crore as against Rs 299 crore last year. VECV recorded sales of 26,086 vehicles in the third quarter, up from 21,010 vehicles last year.

B. Govindarajan, managing director of Eicher Motors and chief executive officer of Royal Enfield, said, “This quarter continues the steady momentum that we have built over the previous six quarters and disciplined execution across Eicher Motors, with encouraging performance from both Royal Enfield and VECV. At Royal Enfield, we continued to see healthy demand across markets, alongside consistent progress in strengthening our product pipeline, capacity building, and engagement with the riding community. The quarter was also significant from a brand and strategy perspective, as we kickstarted celebrations for our historic 125-year milestone at EICMA 2025. With the unveiling of Bullet 650 and Flying Flea S6 and the launch of Himalayan Mana Black and Meteor 350 Sundowner, we showcased our legacy-powered yet innovative mindset.

We also expanded our cultural footprint beyond motorcycling with the second edition of ‘Journeying Across the Himalayas,’ which grew in scale and impact. Our performance over the quarter, particularly during the festive months, is the outcome of consistent efforts, with the GST rationalization further improving accessibility in certain segments.”

Speaking about the capacity expansion, he added, “This investment will augment our existing annual production capacity and allow us to meet the expanding existing and projected future demand. By scaling our existing Cheyyar plant, we are ensuring a faster capacity ramp-up and cost-efficient operations. This project is aligned with our consistent growth focus and underscores our commitment to the evolving needs of our global community.”

Vinod Aggarwal, MD and CEO of VECV and vice chairman of Eicher Motors, said, “The third quarter was marked by a strong recovery in the commercial vehicle industry following a prolonged monsoon. GST reforms, coinciding with the traditional festive buying season, helped revive consumer sentiment and consumption-led demand for transportation. VECV delivered its best-ever third-quarter performance, with sales of 26,086 vehicles, representing a growth of 24.2% over the corresponding period last year.

We sustained our industry leadership in the LMD truck segment (5–18T GVW) while also recording growth across bus and heavy-duty truck segments. The service and parts business also grew during the quarter, reflecting higher service penetration and vehicle utilization across our truck and bus park. During the quarter, we expanded our product portfolio with the launch of the diesel variant of the Eicher Pro X small truck, purpose-built for city and near-city applications, as well as the LNG-powered Volvo Road Train, representing a paradigm shift in long-haul distribution. Continuing our focus on uptime and customer centricity, we added 25 new touchpoints across India, expanding service coverage at an average pace of two locations per week. For the quarter, EBITDA stood at 9.5% and EBIT at 6.8%, reflecting a focus on price realization supported by enhanced value delivery to our customers.”

Meanwhile, the board approved a Rs 958-crore brownfield investment to expand Royal Enfield’s manufacturing capacity at its Cheyyar plant in Tamil Nadu, raising total annual capacity from about 14.6 lakh units to up to 20 lakh units. The phased expansion will begin in Q1 FY27 and is expected to be completed by FY28, funded through internal accruals, the company said.

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo—Volvo Eicher Commercial Vehicles, which operates in India's commercial vehicle space.