Shares of Eicher Motors led the gainers of the Nifty 50, rising close to 4 per cent, following a 9.4 per cent y-o-y increase in consolidated net profit in Q1 FY26.
The automaker reported a net profit of ₹1,205.22 crore during the quarter under review as against ₹1,101.46 crore in the corresponding quarter last year.
The total revenue from operations surged 14.7 per cent to ₹5,041.84 crore in Q1 FY26 as against ₹4,393.05 crore in the year-ago period.
Royal Enfield (RE) recorded sales of 2,61,326 motorcycles in the said quarter, up 15 per cent compared to 2,27,736 motorcycle units sold in the year-ago period.
VECV registered sales of 21,610 units, a growth of 10 per cent y-o-y. EBITDA for the first quarter rose 32.6 per cent to ₹511 crore from ₹385 crore a year ago, according to the company’s statement.
Commenting on RE’s sustained growth momentum, B Govindarajan, Managing Director, Eicher Motors, and Chief Executive Officer, Royal Enfield, said, “The refreshed Hunter 350 continues to be a key marker of growth for us, both in terms of volumes and community engagement. Moving ahead on our global ambition, we further strengthened our reach in the SAARC region and expanded our portfolio in Nepal with the locally assembled Classic 350.”
Vinod Aggarwal, MD and CEO – VECV and Vice Chairman – Eicher Motors Ltd, said, “The overall market share improved to 18.7 per cent (vs 17.3 per cent last year), led by continued leadership in LMD trucks (34.5 per cent share).
“Total bus volumes grew 14.8 per cent and market share rose to 21.5 per cent. Exports grew by 20.5 per cent over last year. Deliveries of all electric Eicher Pro X in SCV segment (2.0–3.5T) continue to gather momentum,” Aggarwal added.
Brokerages offered mixed outlook on the stock despite in-line Q1 show.
Nuvama Institutional Equities cheered the volume uptrend and reckons it to continue, backed by strong acceptance of new models or variants such as Classic, Bullet, Hunter, and the marketing push. Exports momentum is likely to be robust led by strengthening presence in existing markets and model launches, Nuvama added. The brokerage reiterated buy at an increased target price from ₹6,200 to ₹6,400. However, it has trimmed FY26 and FY27 EPS estimates by 2 per cent each on lower margin assumptions.
On the other hand, global brokerage Goldman Sachs has raised FY27-FY28 EPS estimates by up to 5 per cent and has revised target price from ₹6,500 to ₹6,600 with a buy rating.
HDFC Securities, which expected a harder hit on margin due to higher raw material cost and marketing costs, observed that the company’s “volume over margin” strategy played out, with a focus on absolute EBITDA growth. The brokerage has maintained add rating at a target price of ₹5,898 per share.
Meanwhile, Motilal Oswal has retained sell call at ₹4,698 target price, highlighting the margins to remain under pressure. It expects RE to deliver a slower 6 per cent earnings CAGR over FY25-27.
Shares traded at ₹5,568 on the NSE as at 10.11 am, up 3.14 per cent, hitting an early high of ₹5,670.
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Published on August 1, 2025
