Eicher Motors (EIM IN) – Q2FY26 Result Update – Margin contracts on higher RM & marketing costs – HOLD
Published on 17 Nov 2025
EIM reported its highest-ever quarterly consolidated revenue in Q2FY26 at Rs61.7bn (+44.8% YoY), slightly above street estimates. The management is optimistic about sustained growth in H2 driven by strong demand, new product launches and GST 2.0 reforms. It affirmed its focus on long-term value creation, absolute profitability and maintaining leadership in the mid-size motorcycle segment. We tweak volume, realization and margin estimates translating to revenue/EBITDA/PAT CAGR of 15.4%/15.7%/13.3% over FY25-27E and retain ‘HOLD’ rating with TP of Rs6,840 (previous Rs6,729). We value the core business at 30x P/E Sep’27E and VECV business at 10x EV/EBITDA Sep’27E.
