Highlights

• Revenue for Q3 FY26 rose 23% year-on-year to ₹6,114 crores.
• Royal Enfield sales increased 21% to 325,773 motorcycles.
• The Board approved ₹958 crores investment to expand production capacity to 20 lakh units annually.

Eicher Motors Ltd (NSE:EICHERMOT) witnessed renewed brokerage action following the release of its December 2025 quarter results. Shares were trading at ₹7,768.00 on 11 February, up ₹472.00 or 6.47% in morning trade. The earnings update, coupled with a capacity expansion announcement at Royal Enfield, prompted multiple brokerages to revise their ratings and price targets on the stock.

Broker Ratings: Buy, Hold and Add

Following the results, brokerages issued varied recommendations on the stock.

BOB Capital Markets Ltd maintained a Hold rating with a target price of ₹6,931.

Ambit Capital Pvt Ltd issued a Buy rating with a target price of ₹8,014.

Emkay Global Financial Services Ltd assigned an Add rating with a target price of ₹6,900.

Quarterly Numbers Drive Analyst Action

On 10 February, Eicher Motors reported its financial results for the quarter ended 31 December 2025, marking its highest-ever third-quarter performance.

For Q3 FY26, consolidated revenue from operations rose 23% year-on-year to ₹6,114 crores. EBITDA increased 30% to ₹1,557 crores, while profit after tax climbed 21% to ₹1,421 crores, compared with ₹1,171 crores in the same quarter last year.

Royal Enfield recorded quarterly sales of 325,773 motorcycles, up from 269,039 units in Q3 FY25. VE Commercial Vehicles (VECV) posted sales of 26,086 vehicles, compared with 21,010 vehicles a year earlier.

VECV’s revenue from operations stood at ₹7,019 crores, a 21% increase year-on-year. EBITDA rose 26% to ₹652 crores, and profit after tax reached ₹338 crores, up from ₹299 crores in the previous year.

Royal Enfield Capacity Expansion Approved

Eicher Motors’ Board approved a brownfield expansion at Royal Enfield’s Cheyyar manufacturing facility in Tamil Nadu. The expansion will increase annual production capacity from 14.6 lakh units to 20 lakh units over the next two years.

The company plans to invest approximately ₹958 crores in the project. The move is aimed at supporting future production requirements amid rising motorcycle volumes.

Eicher Motors’ December quarter results and planned capacity expansion have led to mixed brokerage ratings. While some analysts see scope for gains based on operational performance and expansion plans, others have adopted a more cautious stance with lower target prices. The divergence in recommendations places broker views at the centre of investor attention in the near term.

Frequently Asked Questions (F&Q)

1. What were Eicher Motors’ key Q3 FY26 financial numbers?
   Revenue rose 23% to ₹6,114 crores, EBITDA increased 30% to ₹1,557 crores, and profit after tax grew 21% to ₹1,421 crores.
2. What investment has the Board approved?
   The Board approved an investment of ₹958 crores for a brownfield expansion at Royal Enfield’s Cheyyar facility, increasing annual capacity to 20 lakh units.
3. What are the latest broker ratings on Eicher Motors?
   BOB Capital Markets has a Hold rating with a target of ₹6,931, Ambit Capital has a Buy rating with ₹8,014 target, and Emkay Global has an Add rating with a ₹6,900 target.

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