Eicher Motors shares jumped over 5 per cent on Wednesday to hit a fresh record high of ₹7,696.05 on BSE after the company reported a strong set of numbers for the December quarter, marked by 21 per cent profit growth and healthy operational performance.
The two-wheeler major posted a 21 per cent year-on-year jump in consolidated net profit attributable to owners at ₹1,420 crore for Q3FY26, compared with ₹1,171 crore in the same period last year. Revenue from operations rose 23 per cent to ₹6,114 crore, up from ₹4,973 crore a year ago.
On a sequential basis, net profit increased 3.7 per cent from ₹1,369 crore in Q2FY26, even as revenue dipped marginally by around 1 per cent from ₹6,172 crore in the July–September quarter.
VECV performance
VE Commercial Vehicles (VECV), Eicher’s commercial vehicle arm, reported sales of 26,086 units in Q3FY26, compared with 21,010 units in the year-ago quarter. Revenue from operations rose 21 per cent year-on-year to ₹7,019 crore. EBITDA for the quarter increased 26 per cent to ₹652 crore, while profit after tax stood at ₹338 crore, up from ₹299 crore last year.
Management commentary
Managing Director B. Govindarajan said the December quarter delivered steady performance, supported by disciplined execution across businesses, with encouraging results from both Royal Enfield and VECV. On the capacity expansion, he noted that the investment would enhance annual production capability and help meet rising current and future demand. The management has guided for high single-digit growth in FY27.
What should investors do?
Citi has maintained its Buy rating on Eicher Motors and raised its target price to ₹8,300, citing a positive surprise in Royal Enfield’s margins driven by better pricing and operating leverage. The brokerage noted improvement in bookings and retail conversions following GST cuts and has raised its FY26–FY28 EBITDA estimates. Citi has also revised its SOTP-based target price upward and remains constructive on the company’s outlook, supported by ongoing capacity expansion and a continued focus on premiumisation.
In contrast, Motilal Oswal has maintained a Sell rating on the stock with a target price of ₹6,313, implying a potential downside of 13 per cent. The brokerage said management expects high single-digit industry growth in FY27 and aims to outperform the broader market. However, it noted that strong domestic volume growth in FY26 has largely been driven by GST rate cut benefits and that demand appears to have normalised after an initial surge. Motilal Oswal also highlighted that the company’s focus on growth over profitability could cap margin expansion going forward. It expects Royal Enfield to deliver a CAGR of 16 per cent in revenue and EBITDA and 14 per cent in PAT over FY25–28E, adding that slower earnings growth may not justify premium valuations.
Choice Institutional Equities has maintained an Add rating on Eicher Motors with a target price of ₹7,560, highlighting the company’s continued leadership in the mid-size motorcycle segment with an around 88.9 per cent market share in 9M FY26. The brokerage attributed the strong performance to robust demand for the 350cc portfolio and a festive-led surge in volumes. It also noted that international volumes remained resilient, supported by improving traction in markets such as Brazil, Argentina and Thailand. Additionally, the launch of the Flying Flea brand marks Royal Enfield’s strategic foray into electric urban mobility, while new models including the Classic 650, Bullet 650 and Himalayan 450 Mana Black are expected to further strengthen the company’s premium product pipeline.
