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 posted weaker-than-expected Ebitda margin, which contracted 190 basis points (bps) to 24.2 per cent in Q3FY25, from 26.1 per cent a year ago

India's Eicher Motors, which makes the Royal Enfield brand of motorcycles, reported third-quarter profit and margins below estimates on Monday, hurt by higher costs and as sales of lower-margin motorcycles outpaced those of higher-margin ones.

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.