Shares of Eicher Motors Ltd. will be closely tracked on Wednesday’s trade after the company received favourable brokerage calls in the wake of its third-quarter earnings that saw healthy growth and strong capacity expansion, even beating analyst estimates.
The Indian automaker reported a consolidated net profit of Rs 1,421 crore in the quarter ended December 2025, marking a 21.4% uptick as compared to Rs 1,171 crore in the year-ago period, according to an exchange filing on Tuesday.
The Royal Enfield maker’s revenue saw an uptick of 22.9% to Rs 6,114 crore compared to the previous year’s Rs 4,973 crore. Its earnings before interest, taxes, depreciation and amortisation were down 29.6% at Rs 1,557 crore from the prior financial year’s Rs 1,201 crore.
Eicher Motors Q3FY26 (Cons,YoY)
- Net profit up 21.4% at Rs 1,421 crore vs Rs 1,171 crore
- Revenue up 22.9% at Rs 6,114 crore vs Rs 4,973 crore
- Ebitda up 29.6% at Rs 1,557 crore vs Rs 1,201 crore
- Margin at 25.5% vs 24.2%
In light of its strong third-quarter earnings, most brokerages have hiked the target price on Eicher Motors, including Jefferies, Morgan Stanley and even Citi.
Brokerages On Eicher Motors
Jefferies on Eicher Motors
- Maintain Buy; Hike TP to Rs 8800 from Rs 8650
- Strong Growth and Expanding Capacity
- Expect RE to be a key beneficiary of rising 2W demand and premiumisation
- Its toughest phase of competition, as well as margin concerns, are behind
Morgan Stanley On Eicher
- Maintain Equal-weight; Hike TP to Rs 7578 from Rs 7190
- Q3 EBITDA was in line
- Given high utilisation rates and a healthy demand outlook, Eicher announced capacity expansion
- Commodity pressure persists; offset by selective price hikes, richer mix, and value engineering
- Ex VECV, the stock trades at 34x F27 P/E, in line
Citi on Eicher
- Maintain Buy; Hike TP to Rs 8300 from Rs 8200
- Q3 Results Above Estimates; Outlook is Positive
- Footfalls, bookings and conversions have seen a sharp increase post GST cuts
- Volumes and margins are both witnessing encouraging trends
- Hike EBITDA estimates due to better ASP and margins
- Increases in EPS are lower due to higher depreciation
Macquarie on Eicher Motors
- Maintain Neutral with TP of Rs 7479
- Solid Q3; capacity expansion to meet demand
- Margin surprise drove EBITDA beat
- Growth outlook constructive
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