Eicher Motors’ shares are in focus after the company reported a 27% year-on-year jump in Q4 net profit. Its revenue from operations grew 23% YoY in Q4. The EBITDA for Q4 came in below estimates, and competitive pricing of key models and higher input costs weighed on margins, but the street is watching out for the volume growth expected in FY26. Volume momentum is expected to continue with strong acceptance of new models/variants (Classic/Bullet/Hunter variants).
Nuvama on Eicher Motors: Target price raised
Nuvama has retained the Buy rating on Eicher Motors and raised the target price to Rs 6,200 per share from Rs 6,100 earlier. They believe volume, momentum and marketing push will add to the profitability going forward. They have raised the FY26/FY27 volume assumption growth estimates by 2% each. However, on the margins front, they are reducing projections by 90–110 bps. Nuvama is building “in revenue/earnings CAGR of 13% each over FY25–27.”
Nuvama expects “expect industry-beating 10% CAGR over FY25–27. This is due to a change in strategy, with increased focus on key models such as Classic/Bullet, through product interventions and stepping up of marketing spends.” R
Eicher Motors: Growth prospects
Many brokerages are upbeat on Eicher Motors on the growth projections. Royal Enfield’s domestic volumes increased 24% YoY in Q4FY25. This, when compared to 3% growth for the motorcycle segment, offers significant optimism for investors. Recent launches such as Battalion Black, Classic refresh, Classic 650 and Hunter 350 refresh models have received a positive response, and the company is upbeat on the FY26 projected volume growth. Furthermore, the company unveiled its new electric motorcycles, the C6 and S6, under the Flying Flea brand, with a planned launch in early 2026. Meanwhile, exports are likely to grow at a 17% CAGR.
Eicher Motors Q3 results
The company reported an 18% growth in net profit to Rs 1,170 crore for Q3FY25, compared with Rs 995.97 crore in the same quarter of the previous financial year. Its revenue from operations stood at Rs 4,888 crore in the October to December quarter of FY25, a growth of 19% YoY, compared with Rs 4,116 crore in the same quarter of the previous financial year.
Eicher Motors’ stock performance
The share price of Eicher Motors has fallen 0.1% in the last five trading sessions. It has declined by 1.5% in the previous one month. However, the stock price of Eicher Motors has risen 12% in the past six months. The stock has given a return of more than 17% in the last one year.
To compare, the Nifty Auto index has risen 0.8% in the last five trading sessions. The index has increased by 10% in the past one month and 1.4% in the previous six months. The basket of automobile stocks has surged by 2.6% in the past one year.