Hero MotoCorp Achieves Record Q2 Revenue, Reports Strong Growth Across Segments
Hero MotoCorp achieved its highest-ever quarterly revenue of Rs. 12,126 Crore and PAT of Rs. 1,393 Crore in Q2, both up 16% YoY. The company outperformed the industry during the festive season with 16.2% growth in ICE VAHAN registrations. VIDA, its EV business, reached a record 11.7% market share. Global business saw 77% dispatch growth. The company announced key leadership appointments and approved additional investment for its Global Part Center 2.0 in Andhra Pradesh.
*this image is generated using AI for illustrative purposes only.
Hero MotoCorp , the world's largest manufacturer of motorcycles and scooters, has reported its highest-ever quarterly revenue and profit after tax (PAT) for Q2, demonstrating robust growth across various segments. The company's performance highlights its strong market position and successful expansion strategies in both domestic and international markets.
Financial Highlights
Hero MotoCorp reported impressive financial results for the second quarter:
| Metric | Q2 | Growth (YoY) |
|---|---|---|
| Revenue | Rs. 12,126 Crore | 16% |
| PAT | Rs. 1,393 Crore | 16% |
| EBITDA | Rs. 1,823 Crore | 20% |
| Volume | 16.91 lakh units | 11.25% |
The company's EBITDA margin expanded by 55 basis points compared to the previous year, standing at 15.0% for Q2.
Market Performance and Product Strategy
During the festive season from August 23 to November 12, Hero MotoCorp outperformed the industry with a 16.2% growth in ICE VAHAN registrations, compared to the industry growth of 14.7%. This resulted in a 40 basis points market share gain, driven by strong performance in the Entry, Deluxe, and Scooter segments.
The company strengthened its 100cc-125cc lineup with new launches and portfolio refreshes, including the HF Deluxe Pro, Glamour X, Destini 125, Destini 110, Xoom 160, and Xpulse 210. The HF Deluxe Pro led gains in the Entry segment, while Passion, Splendor, and Glamor X drove growth in the 100cc-125cc Deluxe segment.
Electric Vehicle Business
VIDA, Hero MotoCorp's Emerging Mobility business, achieved its highest-ever EV business market share of 11.7%, led by the VIDA VX2 EVOOTER. The company launched the VX2 EVOOTER with removable battery and Battery-as-a-Service (BaaS) to improve accessibility and affordability. At EICMA in Milan, Italy, Hero MotoCorp unveiled new electric mobility concepts under the VIDA NOVUS portfolio and announced the launch of VIDA VX2 in Europe.
Global Expansion
Hero MotoCorp's Global Business saw significant growth, with dispatch growth of 77% during the quarter, tripling the industry growth rate. This expansion was led by strong performance in Bangladesh, Nepal, Sri Lanka, and Colombia. The company also marked its entry into European and UK markets with a Euro5+ compliant portfolio.
Leadership Changes and Corporate Updates
The company announced several key leadership appointments:
- Mr. Harshavardhan Chitale as the new Chief Executive Officer (CEO), effective January 5
- Ms. Kausalya Nandakumar as Chief Business Officer – Emerging Mobility Business Unit (EMBU), effective July 10
- Ms. Latika Taneja as Head for Corporate Communications, Corporate Affairs, and Corporate Social Responsibility (CSR), effective August 19
- Ms. Madhuri Mehta as Chief Human Resources Officer (CHRO), effective October 1
Additionally, the Board of Directors approved an additional investment of up to Rs. 170 crore towards setting up Global Part Center (GPC) 2.0 at Tirupati, Andhra Pradesh, with commercial operations expected to commence during FY 2027-28.
The company also announced the resignation of Mr. Dhiraj Kapoor, Company Secretary & Compliance Officer, effective November 14.
Outlook
Vivek Anand, Chief Financial Officer (CFO) of Hero MotoCorp, expressed optimism about the company's future growth prospects. He attributed the strong performance to the simplified GST regime, positive consumer sentiment, and the company's successful product launches and marketing campaigns. Anand stated that Hero MotoCorp expects the growth momentum to continue, supported by GST reforms, healthy macroeconomic parameters, and a robust product portfolio.
As Hero MotoCorp continues to invest in technology, global markets, and product innovation, it aims to build long-term value for its shareholders while maintaining its leadership position in the two-wheeler market.
Sustainability Initiatives
Hero MotoCorp's commitment to sustainability was reflected in its improved Dow Jones Sustainability Index (DJSI) score, which increased to 75 in FY25 from 69 in FY24. Additionally, Dr. Pawan Munjal, Executive Chairman of Hero MotoCorp, was recognized in the TIME100 Climate list for his leadership in driving business climate action.
With its strong financial performance, market leadership, and focus on innovation and sustainability, Hero MotoCorp appears well-positioned to capitalize on the growing demand in both domestic and international markets.
Historical Stock Returns for Hero Motocorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.54% | +4.58% | -0.59% | +36.17% | +20.30% | +77.76% |
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