Eicher Motors zooms 51% so far in CY2025; hits record high in weak market

Analysts remain upbeat on Eicher Motors owing to domestic demand aided by government-led consumption measures, such as income tax relief/ GST rate cuts; a rural demand uptick, and new model launches.

Eicher Motors share price today

 

Shares of Eicher Motors hit a new high at ₹7,290, gaining 2 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market. The stock price of the parent company of Royal Enfield (RE), a global manufacturer of middleweight motorcycles, surpassed its previous high of ₹7,287.60 touched on November 25, 2025. 

 

At 02:52 PM; Eicher Motors was quoting 1.5 per cent higher at ₹7,233.15. In comparison, the BSE Sensex was down 0.36 per cent at 84,362.

 

Thus far in the calendar year 2025, the market price of Eicher Motors has zoomed by 51 per cent as against a 7.5 per cent rally in the BSE Sensex and 16.7 per cent surge in the BSE Auto index. 

 

Why has Eicher Motors outperformed Sensex, BSE Auto index?

 

For the second quarter (July to September) of the financial year 2025-26 (Q2FY26), Eicher Motors clocked its best-ever revenue at ₹6,172 crore, marking a growth of 45 per cent over ₹4,263 crore from Q2 last year. The company reported its highest-ever EBITDA for the quarter at ₹1,512 crore versus ₹1,088 crore in Q2FY25, marking a growth of 39 per cent. 

 

The festive season has been particularly very encouraging for the company, driven by robust demand, record bookings and the sustained consumer confidence and a clear reflection of brand strength. 

 

Meanwhile, Eicher Motors’s RE reported healthy volume prints for the month of November 2025 with total volumes up by 22 per cent year-on-year (YoY) at 100,670 units (maintaining 1 lakh units monthly prints) wherein >350 cc segment reported a de-growth of 6 per cent YoY. Domestic led the growth charge for the month growing 25 per cent YoY at 90,405 units.

 

Over the period April–November 2025, cumulative 2W domestic sales grew by 7 per cent YoY to 17 million units, supported by strong performances from RE (25 per cent), TVS (15 per cent) and Hero (30 per cent). 

ALSO READ: Last day! Corona Remedies IPO closes today | Kaynes Tech stock falls 9% 

The GST reforms by the Government of India have made motorcycles under 350cc more accessible and the customer's response is a clear testament to this during this window.

 

Going ahead, potential upside triggers for domestic demand include government-led consumption measures (Income Tax relief/ GST reduction), a rural demand uptick, and new model launches, analyst at Axis Direct said in its report.

 

The government announced GST 2.0 reforms thereby reducing GST rates for the automobile sector across the segments and value chain, small cars, 2-W’s up to 350cc, and 3-Ws to 18 per cent GST vs. 28 per cent earlier which enables the 2W domain to expect healthy volume growth in FY26E led up upbeat demand sentiments in the rural economy amid healthy farm produce and positive 2025 monsoons, analysts at ICICI Securities said. 

 

Eicher Motors is entering a multi-year upcycle driven by a refreshed and expanding portfolio which includes recent updates to the Meteor, Classic and Hunter lines, new colourways, and the steady rampup of premium platforms such as the Himalayan and Shotgun all of which have materially lifted inquiry-to-booking conversions and supported record quarterly volumes. Simultaneously, the brand gaining with exports, growing sharply (49 per cent YoY) and RE now ranking among the top three midsize motorcycle brands in major markets such as the UK, LATAM, Australia.

 

Eicher Motors stands well-positioned to sustain its growth momentum, backed by a strong brand, disciplined cost control, and prudent capital allocation. With tailwind expected from GST 2.0 reforms in the coming months, the brokerage firm said it continues to assign BUY rating on the stock with a target price of ₹7,850.  ========================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.