In early trading on Wednesday, Eicher Motors Ltd.’s shares surged 6.71 percent to reach an all-time high of Rs 7,786.50 following the company’s release of impressive profits for the December 2025 quarter (Q3 FY26).
While brokerages’ opinions on the stock’s future remained mixed, the steep increase was fueled by strong growth across important segments.
According to Choice Institutional Equities, Eicher Motors had a great third quarter of FY26, with adjusted profit after tax (APAT) growing 26% YoY to Rs 1,476.1 crore and consolidated sales up 23% YoY to Rs 6,114 crore. Strong demand in Royal Enfield and VE Commercial Vehicles (VECV) helped to boost growth.
Operating leverage, price discipline, a favorable model mix, and controlled marketing expenditures were the main drivers of the EBITDA margin’s 131 basis point (bps) increase to 25.5%. Strong demand for sub-350cc motorbikes and a steady recovery in commercial vehicles are expected to drive growth momentum into Q4 FY26E, said to Choice.
A strong product pipeline, capacity expansion, improved operating leverage, and continuing broad-based growth were the reasons given by the brokerage for upgrading the stock from ‘REDUCE’ to ‘ADD’ and basically retaining its FY26–FY28 profit projections. The target price was set at Rs 7,650.
For its part, Motilal Oswal Financial Services Ltd. (MOFSL) maintained its ‘SELL’ recommendation for the company. “The benefits of the GST rate drop have played a major role in the strong domestic volume increase for RE in FY26 thus far. Nevertheless, following an early spike in pent-up demand, demand appears to have already stabilized. Furthermore, margin upside is probably going to be limited going forward since management will likely continue to prioritize “growth over profitability,” according to MOFSL.
For its part, Motilal Oswal Financial Services Ltd. (MOFSL) maintained its ‘SELL’ suggestion for the company. “The benefits of the GST rate drop have played a major role in the strong domestic volume increase for RE in FY26 thus far. Still, following an early spike in pent-up demand, demand appears to have already stabilized. Furthermore, margin upside is probably going to be limited going forward since management will likely continue to prioritize “growth over profitability,” according to MOFSL.
The brokerage maintained its ‘SELL’ call with a target price of Rs 6,313 and expects Royal Enfield to report a CAGR of 16 per cent/16 per cent/14 per cent in sales, EBITDA, and PAT, respectively, during FY25–28E.
Taking into account greater volume projections, Nuvama Institutional Equities increased its target price from Rs 7,700 to Rs 8,100 per share while retaining its ‘Hold’ rating.
considering a greater volume, we are increasing FY27–28 EPS by as much as 4%. Maintain ‘HOLD’ with a TP of Rs 8,100/share (formerly Rs 7,700/share), as we are producing a revenue/earnings CAGR of 13 percent/14 percent during FY26–28E,” Nuvama stated.
FAQs
1. Why did Eicher Motors shares hit a record high?
Eicher Motors shares surged after the company reported strong Q3 FY26 earnings, with adjusted PAT rising 26% YoY and consolidated sales increasing 23% YoY, supported by strong demand for Royal Enfield and VE Commercial Vehicles.
2. What was Eicher Motors’ Q3 FY26 profit?
The company reported an adjusted profit after tax (APAT) of 1,476.1 crore in Q3 FY26, marking a 26% year-on-year growth.
3. How much did Eicher Motors’ shares rise?
In early Wednesday trading, the stock jumped 6.71% to touch an all-time high of 7,786.50.
4. What is Choice Institutional Equities’ view on Eicher Motors?
Choice upgraded the stock from ‘Reduce’ to ‘Add’ with a target price of 7,650, citing strong growth, operating leverage, and a healthy product pipeline.
5. Why did Motilal Oswal maintain a ‘Sell’ rating?
Motilal Oswal believes demand may have stabilized after an initial GST-driven boost and expects limited margin expansion, maintaining a ‘Sell’ rating with a target price of 6,313.
6. What is Nuvama’s target price for Eicher Motors?
Nuvama maintained a ‘Hold’ rating and raised its target price to 8,100 from 7,700, factoring in higher volume projections.
7. What is the growth outlook for Royal Enfield?
Brokerages expect steady growth driven by strong demand in the sub-350cc segment and recovery in commercial vehicles, with double-digit CAGR projections over FY26–28E.
Read more:
