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 company subsequently held its Q4 FY26 earnings conference call on May 06, 2026, hosted by Motilal Oswal Financial Services Limited, with the transcript filed with stock exchanges on May 11, 2026 pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following the results, brokerages have offered mixed assessments — Goldman Sachs and Kotak Securities maintain Sell ratings, while Jefferies has upgraded its stance to Hold.

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 are presented below:

CFO Vivek Anand noted that ICE business EBITDA margin in Q4 expanded by 100 basis points year-on-year to 17%, driven by pricing, LEAP savings, and operating leverage. After accounting for EV business investments of ₹220 crores, the overall EBITDA margin improved by 30 basis points to 14.5%. For the full year, ICE EBITDA margin expanded by 90 basis points to 17%, with overall EBITDA margin improving 30 basis points to 14.7%. Cash flow from operations stood at ₹9,395 crores for the full year, an increase of 80% year-on-year, driven by working capital improvements. The Board declared a final dividend of Rs. 75 per equity share, taking the total dividend for FY 2025-26 to Rs. 185 per equity share — the highest ever — inclusive of the interim dividend of Rs. 110 per equity share paid earlier during the year, maintaining a consistent dividend payout of 70% plus.

Management Commentary: Growth Drivers and Strategic Priorities

CEO Harshavardhan Chitale described FY26 as a landmark year, with the company delivering its highest ever topline and bottom line while maintaining its position as the world's largest two-wheeler manufacturer for 25 consecutive years. Key growth metrics from the year are summarised below:

Chitale noted that retail performance outpaced dispatch growth during the year, resulting in healthier channel stock levels entering FY27. The company completed 9 impactful product launches and multiple refreshes across its ICE and EV portfolio, gaining market share across 100cc, 110cc, ICE scooters, EV scooters, global business, and the Harley-Davidson 400–500cc range. Average selling price in Q4 increased by 3% quarter-on-quarter across product segments.

FY27 Investments and Capacity Expansion

The management outlined four key investment pillars for FY27: capacity expansion, brand building, new product launches, and technology. Hero MotoCorp has committed over ₹1,500 crores of capex in FY27, with a significant portion directed towards scooter and EV capacity. A second global parts center is also being built in South India, with an investment of over ₹700 crores, aimed at doubling the company's parts handling capacity.

On the EV business, Vivek Anand outlined a three-pillar path to self-sustainability: PLI benefits (now covering ~60% of portfolio, targeting ~90% coverage, translating to ~13% of revenue), volume scale-up, and BOM cost reduction. He noted that EBITDA losses per unit have been declining quarter-on-quarter. The company's investment in Euler Motors, which operates in the EV commercial vehicle space, now stands at approximately 37% stake following a ₹210 crore follow-on investment, which is expected to cover Euler's funding requirement for the current fiscal.

Commodity Headwinds and Margin Outlook

Management acknowledged that commodity headwinds began in March and flagged a transitional impact on margins in the short term. In Q4, material cost inflation was ₹2,100 per unit, with a corresponding revenue increase of ₹2,000 per unit, resulting in a 100 basis point drop in gross margin percentage. Inflation was seen across the commodity basket, led by aluminium, steel, rubber, and plastics.

Chitale clarified that the 2% price hike was on the sale price, while the high single-digit increase referred to BOM cost. Management stated it is mitigating the impact through calibrated price increases, accelerated LEAP cost savings, and reduction in discretionary spends, while reaffirming its medium-term EBITDA margin guidance of 14% to 16%.

FY27 Volume Outlook and Market Dynamics

Management guided for high single-digit industry volume growth in FY27, with scooters expected to grow a couple of points faster than motorcycles. Hero MotoCorp expects to outgrow the industry in both motorcycles and scooters. Chitale noted that the first half of FY27 is expected to see stronger growth due to a favourable base effect, while the second half growth rate will be relatively lower. On exports, the company is present in 52 countries and is expanding in Latin America, Africa, Bangladesh (entering the remaining 50% of the market), and Sri Lanka. Near-term risks in export markets include fuel price increases in Bangladesh and Sri Lanka and higher container costs globally.

Analyst Ratings: Mixed Brokerage Views Post Results

Following the Q4FY26 results, brokerages have issued divergent ratings on Hero MotoCorp:

Goldman Sachs noted that Q4 performance was broadly in line with expectations, supported by improved ASPs from better product mix and price hikes, but flagged commodity inflation and FY27 market share and export visibility as key overhangs. Kotak Securities cited the company's higher exposure to underperforming segments and risk of potential market share loss as medium-term concerns. Jefferies highlighted that attractive valuations and an approximately 4% dividend yield provide downside protection, and the upgrade reflects improved confidence in the company's near-to-medium-term trajectory despite residual demand mix challenges.

Regulatory Disclosures

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Hero MotoCorp filed the transcript of the earnings conference call held on May 06, 2026 with the stock exchanges on May 11, 2026. The filing was signed by Prabhat Singh, Company Secretary and Compliance Officer.

Key Takeaways

• Q4FY26 Standalone Revenue stood at Rs. 12,797 Crores (▲29% YoY); Q4 EBITDA at ₹1,856 Crores (▲31% YoY); Q4 PAT at Rs. 1,401 Crores (▲30% YoY)
• FY26 Standalone Revenue at Rs. 46,830 Crores (▲15%); EBITDA ₹6,871 Crores (▲17%); PAT Rs. 5,268 Crores (▲14%); cash flow from operations ₹9,395 Crores (▲80% YoY)
• Total FY26 dividend aggregates to Rs. 185 per equity share — the highest ever — with a 70%+ payout ratio maintained
• FY27 capex committed at over ₹1,500 crores; EV capacity to be doubled before end of FY27; scooter capacity being expanded this quarter
• Export volume crossed 4,02,000 units in FY26 (▲41% YoY); company targets continued momentum across Latin America, Africa, SAARC, and new geographies
• Goldman Sachs maintains Sell at ₹4,300; Kotak Securities maintains Sell at ₹4,700; Jefferies upgrades to Hold at ₹5,000
• Medium-term EBITDA margin guidance of 14%–16% reaffirmed despite near-term commodity headwinds

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%.