Hero MotoCorp Limited has delivered exceptional financial performance for the third quarter ended December 31, 2025, reporting its highest ever quarterly revenue and normalized profit after tax. The world's largest manufacturer of motorcycles and scooters announced these results following a Board meeting held on February 5, 2026, which commenced at 6:30 p.m. and concluded at 8:45 p.m.

Record Financial Performance

The company achieved remarkable growth across key financial metrics during Q3 FY26, with net profit slightly below analyst estimates:

The company's EBITDA margin for the quarter stood at 14.69%, representing an expansion of 23 basis points over the previous year, supported by favorable product mix, pricing strategies, and operational efficiencies. The reported net profit of Rs. 1,348.55 crore came in slightly below analyst estimates of Rs. 1,390.00 crore.

Volume Growth and Market Performance

Hero MotoCorp demonstrated strong operational performance with 16.97 lakh units of motorcycles and scooters sold during Q3 FY26, compared to 14.64 lakh units in the corresponding quarter of the previous fiscal year. This represents a robust 16% year-on-year volume growth, driven by the company's highest ever festive season performance.

The growth was particularly notable in the ICE scooter segment, which witnessed solid growth of 55%. The company maintained its market leadership position across key segments, gaining market share in the 100cc-125cc category led by popular models including Splendor, Glamour, Xtreme, and HF Deluxe in motorcycles, and Xoom, Destini, and Pleasure in scooters.

Interim Dividend Declaration

Reinforcing its commitment to shareholder returns, the Board of Directors approved an interim dividend of Rs. 110 per equity share, representing 5,500% of the face value of Rs. 2 per share. The record date for determining dividend entitlement has been fixed as February 11, 2026, with payment completion scheduled by March 7, 2026.

Strategic Investments and Business Expansion

The Board approved several strategic investments to strengthen the company's future growth prospects:

The additional investment in Euler Motors will be made through a combination of primary infusion and secondary purchase by April 30, 2026. This investment will enhance Hero MotoCorp's participation in the rapidly growing electric three and four-wheeler market, increasing its stake from 34.1% to approximately 36% on a fully diluted basis.

Euler Motors Investment Details

Euler Motors Private Limited, incorporated on January 15, 2015, operates in 64 cities across India and is engaged in designing, manufacturing, selling and servicing electric three and four-wheeler vehicles:

Key Management Appointment

The Board approved the appointment of Mr. Prabhat Singh (Membership No. F8724) as the Company Secretary and Compliance Officer of the company, effective from February 5, 2026. Consequent to this appointment, he will also serve as the Nodal Officer of the company.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, Hero MotoCorp reported revenue from operations of Rs. 34,033.61 crore compared to Rs. 30,817.72 crore in the corresponding period of the previous fiscal year, reflecting 10% growth. The company sold 47.55 lakh units during this period and achieved normalized PAT of Rs. 3,957.00 crore, representing 12% growth over the previous year.

Hero MotoCorp has achieved a significant milestone by maintaining its position as the world's largest two-wheeler manufacturer for 25 consecutive years through FY 2025-26. The company recorded dispatches of 557,871 units in January 2026, marking a robust 26% growth compared to 442,873 units in January 2025, while surpassing market estimates of 534,000 units. The company also achieved 491,986 VAHAN registrations during the month.

Strong Performance Across Business Segments

The January 2026 performance demonstrates Hero MotoCorp's continued market dominance across multiple segments. The strong growth was primarily driven by robust performance in the scooter segment, supported by growing consumer demand for new offerings such as Xoom and Destini. Simultaneously, the motorcycle portfolio witnessed strong traction, led by popular models including Xtreme and Glamour X.

VIDA Business Shows Strong Momentum

VIDA, Hero MotoCorp's emerging mobility business, continued its positive trajectory with 13,000 VAHAN registrations in January 2026. This represents approximately 21% month-on-month growth in retail sales volume compared to 10,701 units in the previous month. The positive growth was driven by sustained demand for VIDA VX2, supported by strong retail footprint and a healthy pipeline of bookings across key markets.

Global Business Maintains Growth Trajectory

The company's global business segment maintained strong momentum with dispatch growth of approximately 24% in January 2026, recording 37,663 units compared to 30,495 units during the same period last year. Strong consumer response for the premium portfolio ensured growth across international markets, reinforcing Hero MotoCorp's global presence.

Recognition and Innovation Excellence

Hero MotoCorp received multiple recognitions during the month. Hero MotoSports Team Rally concluded the 48th edition of Dakar Rally 2026 with a double top 10 finish, marking a historic milestone in the global rally-raid competition. The company was also recognized as an Environment, Social and Governance (ESG) Leader among automotive companies by NSE Sustainability Ratings & Analytics Limited, a SEBI-registered ESG Rating Provider.

Further strengthening its innovation credentials, VIDA's DIRT.E K3 was recognized as CES 2026 Innovation Award Honoree for its innovative size-adaptive design. This recognition underscores Hero MotoCorp's commitment to technological advancement and innovation in the emerging mobility segment.

Year-to-Date Performance

The strong January performance contributes to Hero MotoCorp's year-to-date figures for FY 2026, with total dispatches reaching 5,312,420 units compared to 4,961,515 units in the corresponding period of FY 2025. The motorcycle segment recorded 4,810,410 units while scooters achieved 502,010 units in the year-to-date period.