Q2 FY27 results analysis · November 13, 2026
Eicher Motors Q2 FY27 Results Analysis: Revenue Jumps 20%, Margin Compresses 79 bps (EICHERMOT)
+14.9%PAT year on year, Rs. 1,573.37 Cr
Source: Quarterly results filing (BSE)
Quick summary
Eicher Motors Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 7,421.72 Cr (+20.26% YoY) and PAT growth of +14.89% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,421.72 Cr (+20.26% YoY) |
| PAT (Q2) | Rs. 1,573.37 Cr (+14.89% YoY) |
| EBITDA margin | 23.71% (-79 bps YoY) |
| EPS (Q2) | Rs. 57.31 (+14.78% YoY) |
Quarter Snapshot
Eicher Motors delivered its strongest revenue quarter in five quarters at Rs.7,421.72 Cr (+20.26% YoY) with EBITDA up 16.37% and PAT up 14.89%, while VECV's JV profit rebounded 37.92% YoY. Margin compressed 79 bps YoY on commodity inflation and roughly a quarter of PAT growth came from a deferred-tax credit. Cash conversion (CFO/PAT 1.21x) and a widening net cash position of Rs.3,175.24 Cr fund the Tada/Cheyyar/Flying Flea capex cycle from internal accruals.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "Revenue / demand — likely ahead (YoY), with a mix and channel-quality asterisk" | +20.26% YoY (Rs.7,421.72 Cr) | Played out |
| Margins | "likely compressing at the gross level, partially offset" | EBITDA margin 23.71% vs 24.50% YoY (−79 bps); RM +24.70% > revenue +20.26% | Played out |
| D&A / finance costs | "stay elevated on the capacity build" | D&A +31.69% YoY; finance costs +16.29% YoY | Played out |
| VECV associate line | "a clear tailwind to the associate line" within the Rs.135–323 Cr range | Rs.186.07 Cr (+37.92% YoY, +11.09% QoQ) | Played out |
| Festive build quality (dispatch-vs-retail gap) | "the reported wholesale number may overstate end-demand" | Filing has no volumes/dealer-stock data | Not observable |
| >350cc recovery | ">350cc range was still negative in August (−13%)" | Not in filing (announcement trail: Sep −26%, Oct +18%) | Not observable |
| Standalone-consol revenue gap >Rs.400 Cr persists | "the standalone-vs-consolidated revenue gap (>Rs.400 Cr…)" | Gap normalized to Rs.262.68 Cr (vs Rs.418.81 Cr in Q1) | Contradicted |
| Rare-earth magnet supply (suspension expiry Nov 10, 2026) | "that suspension expires November 10, 2026" | Not addressed in the filing — remains open | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 high single-digit industry growth; RE to outgrow | Q3 FY26 earnings call (qualitative) | H1 consol revenue +25.34% YoY; RE Apr–Oct dispatches +20% (Oct 1, 2026 sales announcement) | On Track |
| Tada Phase 1: Rs.1,225 Cr, up to 4.5 lakh units/yr, completion FY 2029-30 | Board approval announcement, Jul 29, 2026 | Capex pipeline +Rs.362.40 Cr QoQ; H1 capex Rs.860.29 Cr — spend visible | On Track |
| FY26 dividend Rs.82/share | 44th AGM, Aug 20, 2026 | Rs.2,251.08 Cr paid in H1 FY27 | Met |
| Focus "on absolute profit growth, not just percentage growth" | Q1 FY27 earnings call | Absolute EBITDA +Rs.247.61 Cr and PAT +Rs.203.92 Cr YoY, both at record levels; margin −79 bps accepted | Confirmed |
| Festive momentum / record demand narrative | Sales announcements (Sep–Oct 2026) | Q2 revenue Rs.7,421.72 Cr is the highest in the five-quarter trend (+11.90% QoQ); volume claims not in the filing | Confirmed on revenue |
| Other-expense control (absence of campaigns) flagged in Q1 as temporary | Q1 FY27 earnings call | Other expenses +19.27% QoQ in Q2 — spend normalized into the festive quarter — direction as pre-warned | Partially |
| H2 FY27 faces a high base (GST-boosted H2 FY26) | Q1 FY27 earnings call | Not testable this quarter | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Revenue | 6,171.59 | 6,114 | 6,080 | 6,632.42 | 7,421.72 |
| EBITDA | 1,511.90 | 1,557 | 1,520 | 1,590.62 | 1,759.51 |
| EBITDA margin % | 24.50 | 25.47 | 25.00 | 23.98 | 23.71 |
| PAT | 1,369.45 | 1,421 | 1,520 | 1,462.51 | 1,573.37 |
| VECV share of profit | 134.91 | 183 | 323 | 167.50 | 186.07 |
Key Investment Insights
Key Positives
- Consolidated revenue grew 20.26% YoY to Rs.7,421.72 Cr (+11.90% QoQ), the highest in the five-quarter trend
- EBITDA rose 16.37% YoY to Rs.1,759.51 Cr; PAT grew 14.89% YoY to Rs.1,573.37 Cr
- VECV share of profit rose 37.92% YoY to Rs.186.07 Cr, rebounding from the Q1 dip
- H1 operating cash flow of Rs.3,671.56 Cr covered PAT 1.21x; free cash flow of Rs.2,811.27 Cr
- Net cash widened to Rs.3,175.24 Cr while absorbing Rs.2,251.08 Cr of dividend payments
- Standalone-consolidated revenue gap normalized to Rs.262.68 Cr from Rs.418.81 Cr in Q1
- H1 revenue is already 60.04% of FY26 full-year revenue and PAT 55.05% of FY26 full-year PAT
Risk Factors
- EBITDA margin compressed 79 bps YoY to 23.71% as raw material costs grew 24.70% YoY vs revenue +20.26%
- Effective tax rate fell 199 bps YoY on a Rs.77.61 Cr deferred-tax credit; roughly a quarter of PAT growth is tax-line, not operating
- ELV/EPR obligation is disclosed as applicable with financial impact not reliably estimable — an unquantified contingent cost
- Management flagged H2 FY27 faces a high base from GST-boosted H2 FY26 demand
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.