Eicher Motors Share Price Rallies 7% on Impressive Q3 Performance
Eicher Motors share price witnessed a significant surge of nearly 7% during early trading on Wednesday, following the release of robust third-quarter financial results. The stock climbed as high as 6.78% to reach ₹7,791.00 per share on the Bombay Stock Exchange (BSE), reflecting strong investor confidence in the auto major's performance.
Strong Financial Growth in Q3FY26
The commercial vehicles and Royal Enfield motorcycles manufacturer reported a consolidated net profit of ₹1,420.6 crore for the December quarter, marking a substantial 21.4% increase from ₹1,170.5 crore in the same period last year. Revenue from operations also saw a notable rise, growing by 23% year-on-year to ₹6,114 crore from ₹4,973 crore.
At the operating level, EBITDA for the quarter expanded by 29.6% to a record high of ₹1,556.5 crore, compared to ₹1,201 crore in the previous year. The EBITDA margin improved to 25.5% from 24.2%, indicating enhanced operational efficiency and profitability.
Sales Performance and Expansion Plans
Royal Enfield recorded quarterly sales of 325,773 motorcycles, representing a 21% increase from 269,039 units sold in the year-ago period. Meanwhile, VE Commercial Vehicles (VECV) reported sales of 26,086 vehicles in the third quarter, up from 21,010 vehicles in the previous year.
In a strategic move, Eicher Motors' board of directors approved a proposal for capacity expansion at Royal Enfield. This will be achieved through a brownfield expansion at the Cheyyar manufacturing facility in Tamil Nadu, which is expected to boost annual production capacity to 20 lakh units from the current 14.6 lakh units. The company plans to invest an estimated ₹958 crore in this expansion project.
Analyst Views and Recommendations
Nuvama Institutional Equities anticipates that Eicher Motors' volume momentum will continue, supported by strong acceptance of key models such as the Classic, Bullet, and Hunter, along with effective marketing efforts. The brokerage forecasts a volume compound annual growth rate (CAGR) of 12% over FY26–28E and has raised its FY27–28 earnings per share (EPS) estimates by up to 4%. Nuvama retained a 'Hold' rating on the stock, increasing the target price to ₹8,100 per share from ₹7,700 earlier.
In contrast, Motilal Oswal Financial Services (MOFSL) expressed a more cautious outlook. The firm noted that robust domestic volume growth for Royal Enfield in FY26 has largely been driven by GST rate cut benefits, with demand normalizing after an initial surge. MOFSL reiterated a 'Sell' rating on Eicher Motors stock, with a target price of ₹6,313 per share, citing expected slower earnings growth and premium valuations.
Stock Performance Overview
Eicher Motors share price has demonstrated strong performance across various time frames:
- Increased by 3% over the past month
- Gained 13% in three months
- Rallied 37% in six months
- Jumped over 56% in one year
- Delivered multibagger returns of 142% in three years and 176% over the past five years
By 9:55 AM, the stock was trading 6.44% higher at ₹7,766.05 per share on the BSE.
Disclaimer: The views and recommendations provided are those of individual analysts or broking companies and should not be considered as financial advice. Investors are advised to consult with certified experts before making any investment decisions.
