Synopsis: With the stock giving a compounded return of 31 percent in the last 3 years, EICHER motors saw its stock surge again after strong Q3FY26 results, with 23 percent revenue growth, 21 percent profit rise, and robust Royal Enfield and VECV sales.
Shares of Eicher motors was in the spotlight soon after the company announced robust Q3FY26 result and expansion plans in the motorcycle segment where the company has an 88 percent market share in the mid-size segment. Apart from motorcycles the company is also into manufacturing trucks and buses.
With a market cap of more than Rs 2.1 lakh crore, Eicher Motors Ltd saw its stock hit an intraday high of Rs 7801 which is 7 percent higher than the previous close of Rs 7296. The company stock has given a compounded return of 31 percent in the last three years.
The Q3 FY26 Result
In the latest quarterly result the company has seen its revenue from operations increase by 23 percent YoY, from Rs 4,973 Cr in Q3FY25 to Rs 6,114 Cr in Q3FY26, while the QoQ fell by less than a percent from Rs 6,172 Cr. The net profits grew by 21 percent going from Rs 1,170 Cr in Q3FY25 to Rs 1,421 Cr in Q3FY26, while the QoQ increased by 4 percent from Q2FY26’s Rs 1,369 Cr.
In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 27 percent YoY, from Rs 13,629 Cr in 9MFY25 to Rs 17,327 Cr in 9MFY26. The net profits for the same period grew by 18 percent going from Rs 3,372 Cr to Rs 3,995 Cr. Apart from the above number, the company also saw its highest ever EBITDA of Rs 1,557 crores, which also grew by 30 percent on YoY basis.
The company has a 3 year sales CAGR of 22 percent, while the TTM is at 26 percent. The company’s 3 year profit CAGR is at 41 percent, while the TTM number is at 22 percent. The company also has a ROCE of 30 percent and a ROE of 24 percent.
January Sales Highlight
In the previous month, the company saw its Total VECV sales go up by 25 percent as 10,601 units were sold for the month, while the domestic sales of this segment grew by 24 percent with a domestic sales standing at 9729 units for the month.
For Royal Enfield, January sales rose 14 percent YoY to 1.04 lakh units, driven by a 16 percent increase in domestic sales to 93,781 units, while exports also grew 5 percent to 10,541 units, reflecting steady demand both in the Indian market and overseas.
Capacity Addition
The company currently operates at an installed capacity of around 14.6 lakh motorcycles per year, which is close to full utilization. To meet rising demand, it plans a phased brownfield expansion to raise total capacity to 20 lakh units annually by FY28, investing Rs 958 crore through internal accruals at its Cheyyar plant in Tamil Nadu.
Highlights
Apart from the above mentioned capacity expansion for motorcycles, the company also announced that it has seen its sales of registered Royal Enfield motorcycles go up by 21 percent on YoY basis with the number for the quarter at 325,773 units. The company also saw its VECV or VE Commercial Vehicles Limited (Volvo and Eicher JV) sales grow by 24 percent to stand at 26,086 units sold over the quarter.
Business Overview
Eicher Motors Limited is a leading Indian automotive company, best known for Royal Enfield motorcycles and its joint venture with Volvo through VE Commercial Vehicles (VECV). Royal Enfield operates in India and over 80 countries, focusing on premium motorcycles, innovation, and steady global expansion across key international markets.
The company’s key brands include Royal Enfield, offering premium motorcycles, and VECV, which manufactures Eicher trucks, buses, and Volvo Eicher commercial vehicles. Together, they provide comprehensive mobility, logistics, and transportation solutions, supported by strong manufacturing, technology capabilities, and a growing domestic and global distribution network.
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