Eicher Motors share price jumped 6% and hit a 52-week high in early trade. This is after the company’s Consolidated net profit for Q3FY26 came in at Rs 1,430 crore, largely in line with brokerage estimates. While the Royal Enfield performance was better than expected, VECV performance was below expectations.
Eicher Motors Q3 highlights
The consolidated revenue for Eicher Motors grew 23% YoY to Rs 6,110 crore (in line), aided by strong volume growth from the Royal Enfield and VECV businesses. The realisations for Royal Enfield were flat at Rs 0.18 crore while VECV realization declined 3% YoY.
The Q3 Consolidated EBITDA margin grew 130bp YoY to 25.5% (up 100bp QoQ). However, the profit share of VECV grew 12% YoY in Q3. This is below the estimates of most brokerages.
Eicher Motors Q3: Management commentary
A quick look at what the Eicher management expects going forward –
They are hopeful about high single-digit growth for the industry in FY27 and expect to outperform industry growth.
Eicher had implemented a price hike on select models in January and plans to increase prices across the portfolio, though not significantly. The blended price increase across models was around 0.5%.
On the export front, the company’s growth was impacted by weakness in end markets.
In terms of expansion, Eicher has plans to expand its capacity at the Cheyyar facility in Chennai. They are targeting to increase total capacity to 2 million units from 1.4 million , with an investment of Rs 960 crore over the next two years.
Motilal Oswal on Eicher Motors
Leading domestic brokerage house, Motilal Oswal has a ‘Sell’ call on Eicher Motors. They see the stock going down as much as 13% from current levels. According to the brokerage house, “the robust domestic volume growth for Royal Enfield in FY26, so far, has largely been a function of GST rate cut benefits.”
However, they believe that demand has “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.”
“Given the expected slower earnings growth, we see no reason for the stock to trade at premium valuations,” Motilal Oswal added offering rationale for reiterating the ‘Sell’ rating.
Eicher Motors share performance
The Eicher Motors share price is currently up over 6% intraday. The stock has delivered over 4% gains in the last 1 month. The 1-year returns exceed 55%.