Hero MotoCorp has published its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026, approved by the Board of Directors at its meeting held on May 05, 2026. The results reflect strong top-line and bottom-line growth across both reporting bases. Following the results, brokerages have offered mixed assessments — Goldman Sachs and Kotak Securities maintain Sell ratings, while Jefferies has upgraded its stance to Hold, citing improving fundamentals and attractive valuations.

Q4FY26 and Full-Year Financial Performance

Hero MotoCorp reported healthy revenue and profit growth for both the quarter and the full financial year ended March 31, 2026. The financial highlights, as published in the company's newspaper advertisement pursuant to Regulations 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are presented below:

The Board also declared a final dividend of Rs. 75 per equity share. Combined with the interim dividend of Rs. 110 per equity share paid earlier during the year, the total dividend for FY 2025-26 aggregates to Rs. 185 per equity share. The financial results are available on the NSE and BSE websites, as well as on the company's investor relations portal. The disclosure was signed by Dr. Pawan Munjal, Executive Chairman, on behalf of the Board of Directors.

Goldman Sachs: Sell Rating Retained Amid Macro and Strategic Concerns

Goldman Sachs has maintained its Sell rating on Hero MotoCorp with a target price of ₹4,300. The brokerage noted that Q4 performance was broadly in line with expectations, supported by improved ASPs stemming from a better product mix and price hikes. However, Goldman Sachs flagged several key concerns that underpin its cautious stance.

The brokerage specifically highlighted commodity inflation and supply chain stability as near-term risks. Additionally, uncertainty surrounding FY27 market share trajectory and export trends remains a significant overhang on the stock's outlook according to Goldman Sachs.

Kotak Securities: Sell Rating on Margin Headwinds and FY27 Risks

Kotak Securities has also maintained a Sell rating on Hero MotoCorp with a target price of ₹4,700. While the brokerage acknowledged that higher realizations supported an earnings beat versus expectations, it flagged a range of structural and near-term concerns that justify its cautious stance.

Kotak Securities pointed to the company's higher exposure to underperforming segments and the risk of potential market share loss as medium-term concerns. Sustained profitability pressure in FY27 was also cited as a key factor underpinning the Sell recommendation.

Jefferies: Upgraded to Hold on Improving Fundamentals and Valuation Support

Jefferies has upgraded its rating on Hero MotoCorp from Underperform to Hold, while maintaining its target price at ₹5,000. The brokerage cited a healthy two-wheeler demand outlook, with an expected 8% industry CAGR over FY26–29, as a key positive. It also noted that Hero MotoCorp is regaining market share with an improving EV franchise.

Jefferies highlighted that attractive valuations and an approximately 4% dividend yield provide downside protection for investors. Despite flagging demand mix challenges as a residual concern, the upgrade reflects the brokerage's improved confidence in the company's near-to-medium-term trajectory.

Regulatory Disclosures

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Hero MotoCorp has informed the stock exchanges that the audio recording of the earnings call for the quarter and financial year ended March 31, 2026 is now available on the company's investor relations website. Additionally, the newspaper advertisement pertaining to the financial results was filed with the exchanges pursuant to Regulations 30 and 47 of the same regulations. Both disclosures were signed by Prabhat Singh, Company Secretary and Compliance Officer.

Key Takeaways

• Q4FY26 Standalone Revenue stood at Rs. 12,797 Crores, up 29% YoY; full-year standalone revenue at Rs. 46,830 Crores, up 15% YoY
• Q4FY26 Standalone PAT rose 30% YoY to Rs. 1,401 Crores; full-year consolidated PAT grew 32% YoY to Rs. 5,776 Crores
• Total dividend for FY 2025-26 aggregates to Rs. 185 per equity share (interim Rs. 110 + final Rs. 75)
• Goldman Sachs maintains Sell with ₹4,300 target; commodity inflation and FY27 market share visibility remain key concerns
• Kotak Securities maintains Sell with ₹4,700 target; margin headwinds, underperforming segment exposure, and FY27 profitability pressure cited
• Jefferies upgrades to Hold with ₹5,000 target; healthy 2W demand, improving EV franchise, and ~4% dividend yield support the upgrade
• Audio recording of Q4FY26 earnings call now available on Hero MotoCorp's investor relations website per SEBI disclosure norms

Hero MotoCorp , the world's largest manufacturer of motorcycles and scooters, reported its highest-ever annual revenue and profit after tax in its 25th consecutive year of industry leadership. The Board of Directors met on May 5, 2026, approving the audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The company also announced a total dividend of ₹185 per equity share for FY 2025-26.

Financial Performance — FY26 and Q4 FY26

Hero MotoCorp delivered broad-based growth across all key financial metrics for both the full year and the fourth quarter. The following tables summarise the reported performance:

For Q4, the company's results surpassed analyst estimates across key parameters, with EBITDA and revenue both coming in ahead of consensus expectations. The table below presents Q4 actuals alongside prior-year figures and analyst estimates:

EBITDA margin improvement of 30 basis points for the year was driven by a favourable product mix and cost efficiencies. Revenue from the Parts, Accessories, and Merchandising (PAM) business for the year stood at ₹6,147 Crore.

Dividend Declaration

The board recommended a final dividend at 3,750%, amounting to ₹75/- per equity share (face value ₹2/-) for FY2025-26, subject to approval at the 43rd AGM. Including the interim dividend of ₹110 per share, the total dividend for FY2025-26 amounts to ₹185 per equity share, representing a payout of 9,250%.

Business Highlights

Growth during the year was broad-based across the 100cc–125cc, scooter, and premium motorcycle segments, supported by product refreshes and the company's highest-ever festive season. Hero MotoCorp strengthened its product line-up with launches including HF Deluxe Pro, Glamour X, Destini 125, Destini 110, Xoom 160, Xtreme 125R, and Xpulse 210. The Harley-Davidson business delivered 26% year-on-year growth in dispatch volume, supported by the launch of H-D X440T and network expansion to 150+ touchpoints in FY26.

Hero MotoCorp's Global Business closed FY26 at an all-time high, with global dispatches of 4.03 lakh units, registering 40% year-on-year growth. The company expanded its footprint to 52 international markets, including new entries into Europe and the United Kingdom with a Euro5+ compliant portfolio. Key international markets recorded strong market share gains — Sri Lanka at 13.3%, Colombia at 8%, and Bangladesh at 20.1%.