- Eicher Motors reported Q3 net profit of Rs 1,421 crore, up 21.4% year-on-year
- Brokerages raised target prices citing strong growth and capacity expansion
- Positive demand outlook and margin improvement supported bullish brokerage calls
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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