Eicher Motors Another year of jostling between growth and margins

Research evidence excerpt

Eicher Motors Another year of jostling between growth and margins

J P M O R G A N Asia Pacific Equity Research

25 May 2026

Eicher Motors Overweight

EICH.NS, EIM IN

Another year of jostling between growth and margins Price (22 May 26):Rs 6,982

▼Price Target (Mar-27):Rs 7,700

Prior (Mar-27):Rs 7,760

EIM’s 4QFY26 operating results came in slightly ahead of JPM/consensus

expectations. While consolidated revenue came in 2% above JPMe, EBITDA Indian Automobiles, Auto parts and

Transportationcame in 3% higher. Margins contracted 57bps QoQ to 24.9% (vs. JPMe at 24.5%).

Management reiterated their capacity expansion timeline with 1.4m units Amyn Pirani AC

increasing to 1.6m by July-2026 and further brownfield expansion taking it to 2m (91-22) 6157-3583

amyn.pirani@jpmorgan.com

units by 2QFY28. Management has identified an additional greenfield site in

Andhra Pradesh as it expects strong future growth. We maintain FY26-28 volume Harshit Mittal

(91-22) 6157-3152

CAGR of 12% as we believe the company would continue to prioritize growth over harshit.mittal@jpmorgan.com

near-term margins in a period of steep commodity inflation. Our estimates are J.P. Morgan India Private Limited, J.P. Morgan

broadly unchanged and we maintain OW with a price target of Rs 7,700. Tower, Santacruz(E), Mumbai - 400098, SEBI Registration: INH000001873, (91-22) 6157-3000.

• 4QFY26 results scorecard: Consolidated revenue came in at Rs60.8bn

(+16% YoY, +2% vs JPMe), EBITDA at Rs15.1bn (+20% YoY, +3% vs. Style Exposure

JPMe), and EBITDA margin at 24.9% (+90bps YoY /-57bps QoQ; 38bps

higher than JPMe). While commodities continued to remain a headwind, the

company was able to manage through a combination of price hikes and value

engineering. Consolidated PAT at Rs 15.2bn (+12% YoY) was -7% below