Eicher Motors extends rally on solid Q3 performance; surges 19% in 10 days

To cater the increasing demand, the Eicher's board has approved a proposal for capacity expansion at Royal Enfield, taking annual production capacity upto 2 mn units from the existing 1.46 mn units.

Eicher Motors share price today

 

Share price of Eicher Motors hit a new high of ₹8,095; gaining 2 per cent on the BSE in Friday’s intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.91 per cent at 82,916 at 12:19 PM.

 

In the past one week, the stock price of the parent company of Royal Enfield (RE), a global manufacturer of middleweight motorcycles, has rallied 9 per cent on reporting its best-ever third quarter performance. Further, in the past 10 trading days, Eicher Motors’ market price has appreciated by 17 per cent.

 

Eicher Motors Q3 results, capex plan

 

In the October to December 2025 quarter (Q3FY26), the company’s standalone earnings before interest, taxes, depreciation and amortisation (EBITDA) margin came in at 26.6 per cent, 160bps higher than analyst’s estimates.

 

Eicher Motors reported revenue from operations at ₹6,114 crore with a growth of 23 per cent from the corresponding quarter of FY 2024-25. EBITDA grew 30 per cent to its highest-ever at ₹1,557 crore and profit after tax rose 21 per cent to ₹1,421 crore from ₹1,171 crore in a year.

 

To cater the increasing demand, the company’s board approved a proposal for capacity expansion at Royal Enfield, taking annual production capacity upto 2 million units from the existing 1.46 million units. The company is set to invest an estimated ₹958 crore for the brownfield expansion. The ramp-up will happen in a phased manner starting from Q1FY27 and is expected to be completed in FY28.

 

Meanwhile, the management is closely monitoring trade negotiations; a potential reduction in the United States (US) tariffs to 18 per cent and the removal of certain European Union (EU) duties could significantly improve the accessibility and growth of the 450cc and 650cc portfolios in those markets. 

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Brokerages view on Eicher Motors post Q3 results

 

Eicher Motors is entering a phase of improving operating leverage and profitability driven by scale benefits, disciplined pricing, & value engineering despite moderate commodity pressures, according to analysts at ICICI Securities.

 

With sustained double-digit volume growth in Royal Enfield, dominant positioning in the mid-weight motorcycle segment, improving profitability through operating leverage and a strong growth outlook for VECV arm, the brokerage firm said they continue to assign BUY rating on the stock with a target price of ₹9,100 per share. Eicher Motors has a capital efficient business model & cash positive balance sheet, it said.

 

In light of strong volume momentum and an improving outlook, analysts at Axis Securities upgraded the stock from HOLD to BUY, with a target price of ₹8,060/share (earlier ₹6,785/share). The stock has achieved the analyst’s target price today. 

 

The company's management remains focused on driving volume growth in the domestic market through new product launches and refreshes while aiming to gain market share. The company remains cautiously optimistic about exports. The brokerage firm expects RE volumes to grow at 17 per cent compound annual growth rate (CAGR) over FY25-28E, with standalone revenue and EBITDA projected to grow at a 17 per cent and 16 per cent CAGR each over FY25-28E. The long-term growth potential for VECV remains strong, supported by its robust execution capabilities and strong performance in the EV/SCV category.

 

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