About the company:
Hero MotoCorp Limited is India’s largest two-wheeler manufacturer and a global leader in motorcycles and scooters. Headquartered in New Delhi, the company was founded in 1984 and is known for its popular commuter bikes like Splendor, Passion, and HF Deluxe. Hero MotoCorp has a strong domestic and international presence, operating in over 40 countries. The company is investing in electric mobility (Vida EV brand), premium motorcycles, and global expansion, while maintaining its dominance in fuel-efficient and affordable two-wheelers.
Business Segment Performance
Motorcycles & Scooters:
2 million units sold – highest-ever quarterly retail volume.
Strong growth in 125cc motorcycles (Splendor & Xtreme 125R gaining share).
Launches: Xtreme 250R (fastest in its category), Xpulse 210, and Xoom 125 & 160 scooters.
EV (VIDA Brand):
Launched VIDA V2 Series & VIDA V2 Lite (sub-₹1 lakh EV scooter).
Transitioning from V1 to V2, which caused lower Q3 EV dispatches.
PLI compliance filing underway; full PLI-compliant portfolio expected in FY26.
Premium Segment (Harley-Davidson Partnership):
Extended partnership with new models in development.
Targeting domestic & international expansion for Harley X440.
Parts & Accessories:
Highest-ever quarterly revenue at ₹1,555 Cr.
Strong growth in tyres, batteries, and lubricants.
Strategic Updates & Industry Trends
Rural Market Demand:
Rural demand improved by 3% during festive season; expected to grow further in FY26.
Government schemes & financing initiatives expected to boost rural two-wheeler sales.
Hero FinCorp Performance:
Loan book ₹55,500 Cr (+13% YoY), but credit costs rose due to higher delinquencies.
Focus on improving collections & profitability in upcoming quarters.
ESG & Sustainability Initiatives:
Only Indian two-wheeler brand in the DJSI World Index (among top 4 global auto brands).
Continued focus on sustainable manufacturing & green initiatives.
Future Outlook & Guidance
Targeting Double-Digit Revenue Growth in FY26.
EV Portfolio Expansion: More affordable EV models & better distribution network.
Scaling Up Premium & Scooter Segments: More investments in premium bikes, scooters, and digital sales platforms.
Export Expansion: Entering new international markets for both Hero & Harley-Davidson brands.
Here is Hero MotoCorp’s financial performance for the last three quarters (Q3FY25, Q2FY25, and Q1FY25):
| Metric | Q3FY25 | Q2FY25 | Q1FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | ₹10,211 Cr | ₹9,717 Cr | ₹9,474 Cr |
| EBITDA (₹ Cr) | ₹1,476 Cr | ₹1,400 Cr | ₹1,365 Cr |
| EBITDA Margin | 14.5% | 14.4% | 14.2% |
| Profit After Tax (PAT) (₹ Cr) | ₹1,203 Cr | ₹1,150 Cr | ₹1,090 Cr |
| Total Two-Wheeler Sales (Units) | 2.00 million | 1.93 million | 1.85 million |
| Market Share | 32.8% | 30.3% | 29.5% |
| Parts & Accessories Revenue (₹ Cr) | ₹1,555 Cr | ₹1,480 Cr | ₹1,420 Cr |
| EV Sales (VIDA Brand) | Lower due to model transition | Steady growth | Initial ramp-up |
| Hero FinCorp Loan Book (₹ Cr) | ₹55,500 Cr | ₹54,200 Cr | ₹52,800 Cr |
| Interim Dividend (₹/Share) | ₹100 | ₹50 | ₹50 |
Recent updates:
Highlights from last con call:
Financial Performance Highlights
Revenue: ₹10,211 Cr (+5% YoY) – third consecutive ₹10,000 Cr+ quarter.
EBITDA: ₹1,476 Cr (+8% YoY)
EBITDA Margin: 14.5% (+50 bps YoY)
Profit After Tax (PAT): ₹1,203 Cr (+12% YoY)
Parts, Accessories & Merchandise Revenue: ₹1,555 Cr (+9% YoY)
Market Share:
Expanded by 520 bps QoQ to 32.8%, highest in the last two years.
Strong growth in 125cc, EV, and premium motorcycles.
Interim Dividend Declared: ₹100 per share.