New Delhi, Feb. 11 -- Eicher Motors Ltd's approach of achieving volumes by sacrificing margin has rattled investors, pulling the stock 6% lower on Tuesday. The management talked about adopting this strategy in late 2024, but the margin hit is higher than anticipated.

Consolidated Ebitda margin at 24.2% contracted by over 100 basis points (bps) year-on-year and sequentially in the December quarter (Q3FY25). Ebitda is short for earnings before interest, depreciation, and amortization.

Launching new models with additional features but without commensurate price hikes, coupled with higher marketing expenses, played spoilsport. "Ebitda per unit has come off 14% from Q1FY25 to Q3FY25. Even if we adjust for the lumpy launch spend, Ebitda/unit ...