Eicher Motors Surges Five Percent as Record Q4 Profit
Eicher Motors' shares surged following the Royal Enfield parent’s announcement of its highest quarterly earnings ever, with many brokerages maintaining their buy recommendations despite one analyst highlighting increasing margin pressures.
Eicher Motors shares were trading at approximately Rs.7,355, gaining Rs.374 or 5.36 percent on the NSE as of Monday morning, compared to a prior close of Rs.6,981.50.
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The stock reached an intraday peak of Rs.7,388.50 and has provided returns exceeding 36 percent in the last year, significantly surpassing the Nifty 50’s approximate four percent drop during that time.
Market capitalization was approximately Rs.2.01 lakh crore at the moment of writing, with the traded value exceeding Rs.514 crore for the session.
The buy-side inclination in the morning was evident in the order flow, with buyers making up 44 percent of the volume and sellers at 55 percent, indicating some profit-taking occurred while the stock maintained its gains.
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Goldman Sachs reiterated a Buy rating with a new target of Rs.8,400, increased from Rs.8,000, stating that the Q4 results were generally in line. The brokerage observed that gross margins remained unchanged from the previous quarter, even with a 90 basis point challenge from commodities, balanced by a 70bps price increase in January and 20bps from a combination of mix and value engineering.
Goldman noted that inquiries in May are 23 percent above last year, and that dealer inventory is low at 7–8 days, which it interprets as a favorable demand indicator.
HSBC and Citi shared the same optimism. HSBC maintained a Buy rating with a Rs.8,200 target, observing that Royal Enfield’s growth rate surpassing the industry warrants a premium valuation, and a greenfield expansion beyond the Cheyyar brownfield project's two-million-unit plan has been revealed. Citi, with a Rs.8,350 target, highlighted a proposed greenfield project costing Rs.2,500 crore and a new financing partnership with Volvo that may enhance VECV volumes. CLSA maintained an Outperform rating at Rs.7,651, highlighting capacity utilization approaching 90 percent and an anticipated 12 percent volume CAGR for Royal Enfield for FY26–28.
Morgan Stanley took a more balanced approach, maintaining an Equal-weight at Rs.7,763 and observing that debottlenecking may increase capacity to 1.6 million units from 1.4 million while expressing cautious optimism regarding exports.
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The only disagreement was from JM Financial, which kept a Reduce rating with a target of Rs.7,240. The brokerage contended that even with a 175bps increase in April, high raw material expenses, competitively priced new releases, increased marketing expenditures, and costs associated with capacity expansion will impact profitability in FY27 and FY28.
In Q4 FY26, Eicher announced revenue of Rs.6,080 crore, an increase of 16 percent compared to the previous year, while consolidated PAT rose 12 percent to Rs.1,520 crore — setting record highs for a single quarter. Royal Enfield had sales of 1,227,977 units throughout the entire year. The board announced a dividend of Rs.82 for each share.