Eicher Motors shares are likely to remain in focus after brokerages delivered a mixed outlook following its Q4 FY26 results, where the company reported a 16% year-on-year rise in profit but flagged margin pressure due to rising commodity costs. While strong volume growth and steady demand supported earnings, analysts remain divided on the near-term outlook, citing inflation headwinds and export uncertainty even as capacity expansion and price hikes offer some cushion.
Brokerages On Eicher Motors
Created with AI. Errors are possibleTarget price cut to Rs9,001 from Rs9,300
Q4 EBITDA grows 20% YoY ahead of 12% volume growth
Commodity inflation impacts margins by ~90bps in Q4
Management expects commodity inflation impact of 3-3.5% in Q1FY27
Inventory remains lean at 7-8 days supporting wholesale growth
Capacity expansion to 1.6 million units operational from July 2026
Brokerage cuts FY27 and FY28 earnings estimates by 5-6%
Goldman Sachs on Eicher Motors
Target price raised to Rs8,400 from Rs8,000
Q4 gross margins remain flat despite 90bps commodity headwind
April price hike offsets nearly 50% of commodity inflation impact
May inquiries rise 23% YoY
Capacity expansion to 1.6 million units on track in Q2FY27
Brokerage raises FY27 and FY28 EPS estimates by 2.2% and 5.6% respectively
Maintain Neutral with an unchanged TP of Rs 6912
Domestic demand remains healthy, exports uncertain
Expect company to post a 14% earnings CAGR
Target price maintained at Rs7,763
Q4 revenue, EBITDA and PAT grow 16%, 20% and 12% YoY respectively
Inventory remains lean at 7-8 days amid earlier production disruptions
Capacity expansion to 1.6 million units underway from 1.4 million
Commodity cost headwinds of 90bps offset by 70bps price hikes
Management remains cautiously optimistic on exports and FY27 demand momentum
Eicher Motors reported a strong performance for Q4 FY26, with consolidated volumes rising 22% year-on-year to 1,227,977 units compared to 1,002,893 units in FY25. Revenue from operations (RFO) grew 24% YoY to Rs 23,408 crore, while EBITDA increased by 23% to Rs 5,785 crore, reflecting robust operational performance and steady demand across segments.
However, margins saw a slight contraction of 30 basis points to 24.7% from 25.0% last year. Profit after tax (PAT) rose 16% year-on-year to Rs 5,515 crore, up from Rs 4,734 crore in FY25, indicating healthy earnings growth despite marginal pressure on profitability.
“Royal Enfield recorded its highest-ever annual sales surpassing 1.2 million units in FY26 marking the second consecutive year of crossing the 1 million annual sales. Total volumes stood at 1,227,977 units, a 22 per cent YoY increase,” said an earnings statement from Eicher Motors.
Domestic sales grew 23 per cent to 1,107,343 units, while international volumes grew 20 per cent, with 120,634 motorcycles exported, it said. In FY26, VECV also reported highest-ever revenue from operations of Rs 27,076.6 crore, reflecting a 15 per cent growth over last year. “VECV sold 103,404 units in FY26, growing 14.7 per cent over FY25,” it said.
Meanwhile, in a separate filing Eicher Motors informed that its board has recommended final dividend of Rs 82 per equity share of face value of Re 1 each for financial year ended March 31, 2026.
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