Eicher Motors shares hit record high post Q3 earnings; brokerages mixed
Eicher Motors: The sharp rise was driven by robust growth across key segments, though brokerages remained divided on the stock's outlook.
- Feb 11, 2026,
- Updated Feb 11, 2026 9:44 AM IST
Shares of Eicher Motors Ltd jumped 6.71 per cent to hit an all-time high of Rs 7,786.50 in early trade on Wednesday, after the company reported strong earnings for the December 2025 quarter (Q3 FY26).
The sharp rise was driven by robust growth across key segments, though brokerages remained divided on the stock's outlook.
Choice Institutional Equities said Eicher Motors delivered a strong performance in Q3 FY26, with consolidated revenue rising 23 per cent year-on-year (YoY) to Rs 6,114 crore, while adjusted profit after tax (APAT) grew 26 per cent YoY to Rs 1,476.1 crore. Growth was supported by strong traction in Royal Enfield and VE Commercial Vehicles (VECV).
"EBITDA margin expanded 131 basis points (bps) to 25.5 per cent, driven by operating leverage, pricing discipline, favourable model mix and controlled marketing spends. We believe growth momentum would remain intact while heading into Q4 FY26E, led by strong demand in sub-350cc motorcycles and sustained recovery in commercial vehicles," Choice said.
The brokerage largely maintained its FY26–FY28 earnings estimates and upgraded the stock to 'ADD' from 'REDUCE', citing sustained broad-based growth, capacity expansion, improving operating leverage and a strong product pipeline. It pegged a target price of Rs 7,650.
In contrast, Motilal Oswal Financial Services Ltd (MOFSL) reiterated its 'SELL' rating on the stock. "The robust domestic volume growth for RE in FY26 so far has largely been a function of GST rate cut benefits. However, demand seems to have now normalised after an initial surge in pent-up demand. Further, given that management would continue to focus on 'growth over profitability,' it would mean that margin upside is likely to be capped from hereon," MOFSL said.
The brokerage expects Royal Enfield to post a CAGR of 16 per cent/16 per cent/14 per cent in revenue, EBITDA and PAT, respectively, over FY25–28E, and reiterated its 'SELL' call with a target price of Rs 6,313.
Meanwhile, Nuvama Institutional Equities retained its 'Hold' rating but raised its target price to Rs 8,100 per share from Rs 7,700, factoring in higher volume assumptions.
"Factoring in higher volume assumption, we are raising FY27–28 EPS by up to 4 per cent. We are building in revenue/earnings CAGR of 13 per cent/14 per cent over FY26–28E. Retain 'HOLD' with a TP of Rs 8,100/share (earlier Rs 7,700/share)," Nuvama said.
Shares of Eicher Motors Ltd jumped 6.71 per cent to hit an all-time high of Rs 7,786.50 in early trade on Wednesday, after the company reported strong earnings for the December 2025 quarter (Q3 FY26).
The sharp rise was driven by robust growth across key segments, though brokerages remained divided on the stock's outlook.
Choice Institutional Equities said Eicher Motors delivered a strong performance in Q3 FY26, with consolidated revenue rising 23 per cent year-on-year (YoY) to Rs 6,114 crore, while adjusted profit after tax (APAT) grew 26 per cent YoY to Rs 1,476.1 crore. Growth was supported by strong traction in Royal Enfield and VE Commercial Vehicles (VECV).
"EBITDA margin expanded 131 basis points (bps) to 25.5 per cent, driven by operating leverage, pricing discipline, favourable model mix and controlled marketing spends. We believe growth momentum would remain intact while heading into Q4 FY26E, led by strong demand in sub-350cc motorcycles and sustained recovery in commercial vehicles," Choice said.
The brokerage largely maintained its FY26–FY28 earnings estimates and upgraded the stock to 'ADD' from 'REDUCE', citing sustained broad-based growth, capacity expansion, improving operating leverage and a strong product pipeline. It pegged a target price of Rs 7,650.
In contrast, Motilal Oswal Financial Services Ltd (MOFSL) reiterated its 'SELL' rating on the stock. "The robust domestic volume growth for RE in FY26 so far has largely been a function of GST rate cut benefits. However, demand seems to have now normalised after an initial surge in pent-up demand. Further, given that management would continue to focus on 'growth over profitability,' it would mean that margin upside is likely to be capped from hereon," MOFSL said.
The brokerage expects Royal Enfield to post a CAGR of 16 per cent/16 per cent/14 per cent in revenue, EBITDA and PAT, respectively, over FY25–28E, and reiterated its 'SELL' call with a target price of Rs 6,313.
Meanwhile, Nuvama Institutional Equities retained its 'Hold' rating but raised its target price to Rs 8,100 per share from Rs 7,700, factoring in higher volume assumptions.
"Factoring in higher volume assumption, we are raising FY27–28 EPS by up to 4 per cent. We are building in revenue/earnings CAGR of 13 per cent/14 per cent over FY26–28E. Retain 'HOLD' with a TP of Rs 8,100/share (earlier Rs 7,700/share)," Nuvama said.