Eicher Motors shares rise after Q4FY26 profit and revenue beat expectations

Eicher Motors reported better-than-expected Q4FY26 earnings, supported by robust Royal Enfield sales, strong VECV performance and export growth

Eicher Motors Q4 consolidated net profit rose 12% YoY backed by record sales of Royal Enfield in the March quarter. Analysts maintain positive outlook on the stock.

Shares of Royal Enfield maker Eicher Motors rallied 5.2% to their day’s high of Rs 7,352 on the BSE on Monday after it posted a consolidated net profit of Rs 1,520 crore for the March quarter of FY26, up 12% from Rs 1,362 crore reported in the same period last year. The company’s total revenue from operations increased 16% year-on-year to Rs 6,080 crore in Q4FY26, compared with Rs 5,241 crore in the corresponding quarter of the previous financial year.EBITDA for the fourth quarter rose 20% year-on-year to Rs 1,514 crore. Royal Enfield posted its highest-ever fourth-quarter sales, with motorcycle volumes rising 12% to 313,811 units compared with the year-ago period. Meanwhile, VE Commercial Vehicles (VECV) reported sales of 33,976 vehicles during the quarter, higher than 28,675 vehicles sold a year earlier.Eicher Motors share price: Buy, sell or hold?Goldman Sachs maintained its ‘Buy’ rating on Eicher Motors' share price and raised the target price to Rs 8,400 from Rs 8,000, an upside of 20.2% from current levels. The brokerage noted that Q4 gross margins remained flat despite a nearly 90-basis-point commodity cost headwind, partly aided by the April price hike, which offset almost half of the inflation impact. It also highlighted a strong 23% year-on-year rise in May inquiries and said the company’s capacity expansion to 1.6 million units remains on track for Q2FY27. Goldman Sachs raised its FY27 and FY28 EPS estimates by 2.2% and 5.6%, respectively.Morgan Stanley maintained its ‘Equal-weight’ rating on Eicher Motors with an unchanged target price of Rs 7,763. The brokerage highlighted that Q4 revenue, EBITDA and profit after tax grew 16%, 20% and 12% year-on-year, respectively. It noted that inventory levels remain lean at 7-8 days following earlier production disruptions, while the company’s capacity expansion from 1.4 million units to 1.6 million units is progressing as planned. Morgan Stanley added that commodity cost headwinds of around 90 basis points were partly offset by price hikes of nearly 70 basis points. The brokerage said management continues to remain cautiously optimistic on exports and overall demand momentum for FY27. Elara retained its ‘Buy’ call on Eicher Motors but cut the target price to Rs 9,001 from Rs 9,300. The brokerage said Q4 EBITDA growth of 20% outpaced the 12% rise in volumes, although margins were impacted by around 90 basis points due to commodity inflation. Management expects commodity inflation pressure of 3-3.5% in Q1FY27. Elara also pointed to lean inventory levels of 7-8 days, which continue to support wholesale growth, while the planned capacity expansion to 1.6 million units is expected to become operational from July 2026. The brokerage reduced its FY27 and FY28 earnings estimates by 5-6%.JM Financial maintained its ‘Reduce’ rating on Eicher Motors and revised the target price slightly higher to Rs 7,240 from Rs 7,150. The brokerage said Royal Enfield continues to witness healthy domestic demand momentum, supported by robust bookings and lean inventory levels of around seven days. However, management remains cautiously optimistic on exports due to global macroeconomic uncertainties. JM Financial expects volume growth of around 9.8% in FY27 and 8.2% in FY28. Despite a 1.75% price hike in April 2026, the brokerage believes elevated raw material costs, aggressive pricing of new launches, higher marketing expenses and ramp-up costs linked to new capacities could weigh on margins going forward. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)