Shares of Eicher Motors climbed sharply on Monday after the Royal Enfield parent reported its best-ever quarterly earnings on Friday, with most brokerages reaffirming buy calls even as one analyst flagged mounting margin pressure.

Eicher Motors stock was trading around ₹7,355, up ₹374 or 5.36 per cent on the NSE as of Monday morning, against a previous close of ₹6,981.50. The stock hit an intraday high of ₹7,388.50 and has now delivered returns of over 36 per cent in the past year, comfortably outpacing the Nifty 50’s near 4 per cent decline over the same period. Market capitalisation stood at roughly ₹2.01 lakh crore at the time of writing, with traded value already crossing ₹514 crore for the session.

The morning’s buy-side tilt was visible in order flow, with buyers accounting for 44 per cent of quantity and sellers at 55 per cent, suggesting some profit booking even as the stock held its gains.

Goldman Sachs maintained a Buy with a revised target of ₹8,400, raised from ₹8,000, calling the Q4 print broadly in line. The brokerage noted that gross margins held flat quarter-on-quarter despite 90 basis points of commodity headwind, offset by a 70bps price hike in January and 20bps from mix and value engineering. Goldman flagged that May inquiries are running 23 per cent higher year-on-year and that dealer inventory remains lean at 7–8 days, which it views as a positive demand signal.

HSBC and Citi echoed the optimism. HSBC kept a Buy with a ₹8,200 target, noting that Royal Enfield’s growth trajectory above the industry justifies a premium valuation and that a greenfield expansion beyond the two-million-unit Cheyyar brownfield project has been announced. Citi, with a ₹8,350 target, pointed to a planned greenfield facility at ₹2,500 crore and a new financing joint venture with Volvo that could support VECV volumes. CLSA held an Outperform at ₹7,651, flagging capacity utilisation nearing 90 per cent and a projected 12 per cent volume CAGR for Royal Enfield through FY26–28.

Morgan Stanley was more measured, retaining an Equal-weight at ₹7,763 and noting that debottlenecking could lift capacity to 1.6 million units from 1.4 million while flagging cautious optimism on exports.

The sole dissent came from JM Financial, which maintained a Reduce with a target of ₹7,240. The brokerage argued that despite a 175bps April price hike, elevated raw material costs, aggressively priced new launches, higher marketing spend, and capacity ramp-up costs will weigh on profitability in FY27 and FY28.

For Q4 FY26, Eicher reported revenue of ₹6,080 crore, up 16 per cent year-on-year, while consolidated PAT grew 12 per cent to ₹1,520 crore — both all-time highs for a single quarter. Royal Enfield sold 1,227,977 units across the full year. The board declared a dividend of ₹82 per share.

Published on May 25, 2026