Shares of Eicher Motors dropped nearly 7% on Tuesday as the Royal Enfield motorcycle maker's heavy spending on new launches hurt profit margins, with analysts expecting the company's focus on growth to keep the pressure on profitability.

The company reported a profit after tax (PAT) of Rs 996 crore in the October-December quarter of the last fiscal.

Eicher Motors’ consolidated net profit surged 15.6 per cent year-on-year (Y-o-Y) to Rs 1,056 crore during the third quarter of 2024-25 owing to launches and strong demand in the festival season.

India's Eicher Motors, which makes the Royal Enfield brand of motorcycles, missed third-quarter profit estimates on Monday, hurt by a mix of high marketing expenses and sales of lower-margin motorcycles outpacing higher-margin models.

Eicher Motors Ltd revenue up by 19% YoY to ₹4,973 crore from ₹4,179 crore. EBITDA, up by 10.2% YoY at ₹1,201 crore.