Shares of Eicher Motors tumbled as much as 7% in opening trade on Tuesday after the Royal Enfield maker reported a net profit of ₹1,171 crore, missing analyst expectations.

The stock opened lower at ₹5,209.80 against its previous closing price of ₹5,329.45 on the BSE. It soon hit a low of ₹4,966.15, taking the automaker’s market cap to around ₹1.38 lakh crore.

Eicher Motors on Monday announced the appointment of Siddhartha Lal as the executive chairman of the board, following the retirement of chairman, S. Sandilya. In addition, the board also appointed Vinod Aggarwal as the vice chairman (non-executive), and B. Govindarajan as the new managing director of Eicher Motors. Vinod Aggarwal will continue to be managing director and CEO at VE Commercial Vehicles (EML’s joint venture with the Volvo Group), while B. Govindarajan will retain his role as the CEO of Royal Enfield.

“After more than 25 years at EML in various capacities, including as the MD and CEO, I am now looking forward to the opportunity to reinvent my role. Along with taking on greater governance and board responsibilities, I will be deeply engaged in shaping EML’s long-term vision for the decades ahead - guiding the company’s strategic direction while continuing to drive consumer insights, brand development, next-gen technology adoption, and product innovation. Additionally, I look forward to dedicating more time to leadership development and mentoring, helping to nurture the next generation of leaders as we continue our journey of growth and transformation,” Lal said in a statement.

Eicher Motors’ revenue from operations jumped 19% to ₹4,973 crore from ₹4,179 crore in the corresponding quarter of FY24.

Royal Enfield recorded its highest-ever quarterly sales volume of 269,039 motorcycles, up 17% from 229,214 motorcycles sold during Q3 FY 2023-24.

VE Commercial Vehicles’ revenue from operations in Q3 FY25 stood at ₹5,801 crore, up 6% from ₹5,483 crore in the same quarter of FY24. EBITDA for the third quarter rose 16% to ₹509 crore, from ₹437 crore a year ago. Profit grew by 44% to ₹301 crore from ₹209 crore in the corresponding quarter. VECV sold 21,012 vehicles in the third quarter, up from 20,706 vehicles a year ago.

Even as the commercial vehicle industry remained sluggish, VE Commercial Vehicles grew volumes quarter-on-quarter with strengthened market share in all segments, said Lal.

Speaking on VECV’s performance, Vinod Aggarwal, MD and CEO of VECV, said, “VECV posted market-share gains in all segments and recorded a solid third quarter in a market that had still not recovered from the slowdown during the elections and uneven monsoon season.”