Eicher Motors shares rise 7% to record high after in-line Q3 results

The buying on the counter came after Eicher Motors released its Q3FY26 numbers on Tuesday, after market hours.

Eicher Motors' share price gained 6.7 per cent, clocking an all-time high at ₹7,791 on BSE. At 9:57 AM, Eicher Motors shares were trading 6.51 per cent higher at ₹7,771 per share. In comparison, the BSE Sensex was up 0.02 per cent at 84,291.83. 

 

The buying on the counter came after the company released its Q3FY26 numbers on Tuesday, after market hours. 

 

In the December quarter, Eicher Motors reported a consolidated net profit growth of 21.3 per cent at ₹1,420.61 crore, as compared to ₹1,170.5 crore a year ago. Bloomberg estimated profit after tax (PAT) at ₹1,368.1 crore.

 

The company’s revenue grew 22.9 per cent to ₹6,114.04 crore in Q3FY26 compared to ₹4,973.12 crore a year ago. Revenue was expected to come in at ₹6,082.17 crore. Check detailed results here 

 

Brokerages' view on Eicher Motors

Motilal Oswal Financial Services said that consolidated PAT rose to ₹1,430 crore, broadly in line with its estimate. The brokerage noted that Royal Enfield (RE) performed better than expected during the quarter, while VE Commercial Vehicles (VECV) came in below its expectations.

 

The strong domestic volume growth for Royal Enfield seen so far in FY26 has largely been driven by the benefits of the goods and services tax (GST) rate cut, according to the brokerage. However, it added that demand appears to have normalised after an initial surge supported by pent-up demand.

 

The brokerage said management’s continued focus on “growth over profitability” could cap further margin improvement from current levels, limiting upside.

 

Motilal Oswal factored in Royal Enfield to deliver a FY25–FY28E CAGR of 16 per cent/16 per cent/14 per cent in revenue/Earnings before interest, tax, depreciation and amortisation (Ebitda)/PAT, respectively. Given its expectation of slower earnings growth, the brokerage said it sees no rationale for the stock to trade at premium valuations and reiterated its ‘Sell’ rating with a target price of ₹6,313.  Emkay Global Financial Services said Eicher Motors delivered a strong third-quarter performance, driven by robust volume growth and margin expansion. It raised its FY27/28E earnings per share (EPS) estimates by 4 per cent/8 per cent and hiked its target price to ₹7,500 (from ₹6,900), while retaining its ‘Add’ rating due to rich valuations.   Further, Emkay noted that a slightly unfavourable product mix led to a 2 per cent quarter-on-quarter (Q-o-Q) dip in average selling price (ASP) to around ₹1,85,000.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.