Eicher Motors posted a 21.37 per cent rise in consolidated profit after tax to ₹1,420.61 crore for the quarter ended December 31, 2025, compared with ₹1,170.5 crore a year earlier. | Photo Credit: iStockphoto
Shares of Eicher Motors climbed to a fresh all-time high after the company reported strong third-quarter earnings and announced a major capacity expansion plan for Royal Enfield.
The stock jumped 7 per cent from its previous close of ₹7,296 to touch ₹7,805 in intraday trade, buoyed by upbeat operating performance and a largely supportive set of brokerage reactions. At 10.4 am, it traded 6.5 per cent positive at ₹7,770.50 on the NSE.
Eicher Motors posted a 21.37 per cent rise in consolidated profit after tax to ₹1,420.61 crore for the quarter ended December 31, 2025, compared with ₹1,170.5 crore a year earlier, driven by robust sales momentum. Consolidated revenue from operations increased to ₹6,114.04 crore from ₹4,973.12 crore in the year-ago period. The company also said its board had approved an investment of ₹958 crore to expand production capacity at its two-wheeler arm Royal Enfield, reflecting confidence in demand prospects.
Domestic brokerage Nuvama described the quarter as robust, noting that revenue rose 23 per cent year on year to ₹61.1 billion, broadly in line with expectations, while EBITDA grew 30 per cent to ₹15.6 billion, aided by lower material costs through value analysis and value engineering initiatives. The brokerage said volume momentum should persist, supported by strong acceptance of key models such as Classic, Bullet and Hunter, along with a marketing push and steady exports. On the back of higher volume assumptions, Nuvama raised its FY27–28 earnings estimates and lifted its target price to ₹8,100 per share, while retaining a hold rating.
HDFC Securities highlighted that the company’s “volume over margin” strategy continues to play out, enabling it to benefit from rising demand following GST rate rationalization. It said management remains optimistic about sustaining demand even after the festive season and expects overseas initiatives to pay off over the medium term as global conditions improve. The brokerage maintained its add call with a target price of ₹7,275.
Motilal Oswal struck a more cautious tone, arguing that the sharp domestic volume growth seen so far in FY26 was largely driven by GST cut benefits and that demand has begun to normalize after the initial surge. With management prioritizing growth over profitability, it said margin upside could be capped. The brokerage reiterated its sell call with a target price of ₹6,313, adding that it sees no justification for premium valuations given its expectation of slower earnings growth ahead.
Among global brokerages, sentiment remained broadly constructive despite some valuation caution. Jefferies maintained a buy and raised its target price to ₹8,800, citing strong growth, expanding capacity and expectations that Royal Enfield will benefit from rising two-wheeler demand and premiumisation, while adding that the toughest phase of competition and margin pressures appear to be behind the company.
Morgan Stanley kept an equal-weight stance and lifted its target to ₹7,578, noting that third-quarter EBITDA was broadly in line and that capacity expansion was warranted given high utilization and healthy demand, even as commodity pressures persist.
Citi also stayed positive with a buy call and a higher target of ₹8,300, pointing to improving footfalls, bookings and conversions after GST cuts and encouraging trends in volumes and margins.
Macquarie, meanwhile, reiterated a neutral rating with a target of ₹7,479, saying the quarter was solid, margin gains drove the EBITDA beat and the growth outlook remains constructive.
Published on February 11, 2026