Eicher Motor Shares Rally 6% As Brokerages Stay Bullish On Strong Q4 Earnings: Buy, Sell, Or Hold?

Shares of Eicher Motor opened sharply higher and rallied nearly 6% on Monday, May 25, after the Royal Enfield maker received braodly positive brokerage views over strong January-March quarter performance. Global brokerages across the board including Morgan Stanley, Jefferies, CLSA, and HSBC maintained thier bullish outlook on the two-wheeler auto major. Eicher Motors Ltd. reported its fourth quarter results for FY26 on Friday post-market hours with key metrics in line with Bloomberg estimates.

Shares of Eicher Motors opened at Rs 7,237 today, 3.6% higher than the previous close of Rs 6,981.50 apiece on the NSE. The stock extended gains to rally nearly 6%, hitting an intraday high of Rs 7,388.50 apiece on the NSE. Shares last traded 5.405 higher at Rs 7,356 apiece on the NSE against a positive trend of frontline indices. The stock has gained nearly 7% in one week, 3.5% in one month, and 36% in the last one year. The two-wheeler manufacturer commands a market cap of Rs 2,01,799.24 crore.

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Eicher Motors Q4 Results

Eicher Motor's net profit rose 12% at Rs 1,520 crore in the fourth quarter of the previous fiscal. This is in comparison to profit of Rs 1,362 crore in the fourth quarter of fiscal 2025. The Bloomberg consensus estimate was Rs 1,455 crore. Consolidate revenue of the Royal Enfield maker advanced by 16% year-on-year for the three months ended March, reaching Rs 6,080 crore in comparison to Rs 5,241 crore. Operating income, or earnings before interest and taxes rose 20.3% to Rs 1,514 crore from Rs 1,258 crore.

Margins expanded to 24.9% from 24% in the same quarter of fiscal 2025. Eicher Motors on Friday announced the final dividend of Rs 82 per equity share for the fiscal 2026 as profit surges. This is the highest dividend since 2020. The company announced distribution of nearly Rs 2,249 crore to shareholders. The record date for ascertaining entitlement of final dividend for fiscal 2026 has not been set. 

Eicher Motor Intraday Share Price

Brokerages bullish on Eicher Motors: Should You Buy, Sell, Or Hold?

Following a strong performance in Q4FY26 that was largely in line with Street estimates, major global brokerages have maintained a positive outlook on Eicher Motors, driven by robust average selling prices (ASPs), a richer product mix, and structural demand in the premium motorcycle segment. HSBC maintained 'buy' rating, raising target price to Rs. 8,200, citing lower commodity costs and management's confidence in sustained domestic and export demand, and strong enquiry trends in April.

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Similarly, CLSA sustained its outperform rating with a higher target price of Rs. 7,651, highlighting a sharp margin expansion at VECV due to operating leverage and efficient execution. Jefferies also maintained a 'buy' rating with the highest target price of Rs. 8,800, noting that while near-term margins face input cost headwinds, Eicher's premium positioning and strong pricing power leave it better placed, alongside a recovering EV business.

Meanwhile, Morgan Stanley holds an Equal-weight rating with a target price of Rs. 7,763, pointing out that management expects growth momentum to continue into FY27; the company successfully offset previous commodity headwinds with price hikes and has proactively implemented another 1.75% price increase in April to counter anticipated Q1 cost pressures.

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