Eicher Motors (EIM IN) – Q3FY26 Result Update – Pricing discipline, improved mix drive margins – HOLD
Published on 12 Feb 2026
EIM’s Q3FY26 consol operating revenue grew by 22.9% YoY to Rs61.1bn (in line with street estimates). EBITDA margin expansion was driven by operating leverage, pricing discipline and improved mix. It expects the industry to grow at high single digits in FY27 and RE to outperform via new launches and brand building campaigns, especially around its 125th year celebration. It remains focused on long-term value creation, maintaining leadership in mid-weight motorcycles, growing absolute volumes and profitability. We estimate revenue/EBITDA/PAT CAGR of 16.8%/17.1%/15.8% over FY25-28E and retain ‘HOLD’ rating with TP of Rs7,650 (previous Rs7,350). We value the core business at a P/E of 32x basis Sep’27E standalone EPS and VECV business at 10x EV/EBITDA Sep’27E.
