Key Points:
- Eicher Motors posted Q3 FY26 profit of ₹1,420.61 crore and revenue of ₹6,114.04 crore, both above expectations.
- Royal Enfield drove strong growth while VE Commercial Vehicles underperformed, with management prioritising expansion over margins.
- Despite record highs, Motilal Oswal maintained a sell rating with a target price of ₹6,313 due to moderating demand and limited margin upside.
Eicher Motors shares surged to a record high after the company reported strong third-quarter earnings for the financial year 2026. The stock climbed 6.7 per cent to ₹7,791 on the BSE and was trading at ₹7,771, up 6.51 per cent, at 9:57 AM. In comparison, the BSE Sensex was marginally higher at 84,291.83, up 0.02 per cent.
Profit And Revenue Show Solid Growth
The rally followed the release of the company’s December quarter results after market hours. Eicher Motors reported a consolidated net profit of ₹1,420.61 crore for the quarter, marking a growth of 21.3 per cent compared to ₹1,170.5 crore in the same period last year. Profit after tax exceeded market expectations of ₹1,368.1 crore.
Revenue for the quarter rose 22.9 per cent to ₹6,114.04 crore, compared to ₹4,973.12 crore a year earlier. Revenue also came in slightly above expectations of ₹6,082.17 crore. The growth was supported by improved volumes and stable demand across segments.
During the trading session, the stock touched a day high of ₹7,805 and a low of ₹7,501. The 52-week range stands between ₹4,644.10 and ₹7,805, reflecting a strong upward movement over the past year.
Royal Enfield, the company’s flagship motorcycle brand, played a key role in driving performance during the quarter. Domestic volumes remained strong through the financial year so far. Growth in volumes has been supported by the impact of the goods and services tax rate cut, which helped improve affordability and demand in the earlier part of the year.
However, brokerage commentary suggests that demand has started to stabilise after the initial surge that followed the tax adjustment. The pace of growth is expected to moderate as pent-up demand effects ease.
Brokerage View And Future Outlook
Motilal Oswal Financial Services noted that consolidated profit rose to about ₹1,430 crore, broadly in line with its internal estimates. The brokerage highlighted that Royal Enfield performed better than expected during the quarter. However, VE Commercial Vehicles delivered numbers below expectations.
The brokerage observed that management continues to focus on growth over profitability. While this strategy supports volume expansion and market presence, it may limit further margin improvement from current levels.
Looking ahead, Motilal Oswal has factored in a compound annual growth rate between financial years 2025 and 2028 of 16 per cent in revenue, 16 per cent in earnings before interest, tax, depreciation and amortisation, and 14 per cent in profit after tax for Royal Enfield. Given expectations of slower earnings growth in the coming years, the brokerage reiterated its sell rating with a target price of ₹6,313.
For Indian entrepreneurs and business owners, the results highlight how focused brand positioning and consistent demand in the premium motorcycle segment can drive strong financial outcomes. At the same time, the commentary on margins and valuation signals the importance of balancing expansion with sustained profitability in a competitive market environment
