Royal Enfield-maker Eicher Motors shares crack 7% post Q3 results as Goldman Sachs cuts target price | Stock Market News

Shares of Eicher Motors fell nearly 7 percent in intra-day trading on Tuesday, February 11 post its December quarter results (Q3FY25) after global brokerage firm Goldman Sachs reduced its target price following the company’s Q3 FY25 earnings.

Goldman Sachs maintained a ‘Buy’ rating on Eicher Motors but revised its target price downward to ₹5,900 from ₹6,000, implying a 12.5 percent upside potential from previous close. The brokerage noted that the company’s Q3 performance aligned with expectations, with a deeper focus on product and marketing strategies supporting further growth. Volume momentum is expected to continue in Q4, driven by sustained demand. However, Goldman Sachs cut its FY25-27 EPS estimates by 5.4 percent, citing higher marketing expenses as a key factor. Additionally, regulation-driven price hikes have been more diverse for Eicher compared to the rest of the industry.

Financial Performance

Eicher Motors recorded an 18 percent rise in net profit to ₹1,170 crore for the third quarter, compared to ₹995.97 crore in the same period of the previous financial year. Revenue from operations surged 19 percent to ₹4,888 crore in Q3 FY25, compared to ₹4,116 crore in the corresponding quarter last year.

The company’s EBITDA grew 10 percent year-on-year (YoY) to ₹1,201 crore from ₹1,090 crore in Q3 FY24.

The VE Commercial Vehicles (VECV) segment posted a 6 percent YoY increase in revenue to ₹5,801 crore, while EBITDA for the segment rose 16 percent to ₹509 crore. The segment’s profit after tax surged 44 percent to ₹301 crore.

VECV achieved its highest-ever quarterly sales volume, selling 21,012 vehicles in Q3 FY25, surpassing the 20,706 units sold in the same period last year. The company stated that its commercial vehicles business demonstrated resilience and gained market share even as the overall CV industry remained sluggish.

Siddhartha Lal, Managing Director of Eicher Motors, expressed confidence in the company’s trajectory, stating, “With a strong and diverse product portfolio, we are well on track to meet the evolving needs of riders across the world. Even as the commercial vehicle industry remained sluggish, VE Commercial Vehicles grew volumes quarter-on-quarter with strengthened market share in all segments. With this momentum across both motorcycle and commercial vehicle businesses, we are confident of continued success in the future as well.”

Royal Enfield continued to strengthen its foothold in the mid-size motorcycle segment, posting its highest-ever quarterly sales volume of 269,039 motorcycles, a 17 percent increase from 229,214 motorcycles sold in Q3 FY24.

Govindarajan, CEO of Royal Enfield, highlighted the company’s operational strategy, stating, “Our performance in the last quarter is a result of the groundwork we put in through the year—preparing for key launches and optimizing operations to ensure we were ready to deliver at this scale, especially during the festive season in India.”

Stock Performance

Following the brokerage revision, Eicher Motors’ stock declined as much as 6.8 percent to its intra-day low of ₹4,966.15. The stock is now over 10 percent below its all-time high of ₹5,551.75, recorded on February 4, 2025. However, it remains up over 35 percent from its 52-week low of ₹3,675.00, recorded in March 2024.

Over the past year, the stock has gained 39 percent. In February 2025, it has declined 1 percent so far, following an 8 percent surge in January.

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