Hero MotoCorp management has updated its growth outlook, projecting overall growth in high single digits for the next financial year. This revised guidance was shared during the company's recent conference call, reflecting management's assessment of market conditions and business prospects.

Updated Growth Projections

The company's leadership has communicated expectations for high single-digit growth in the upcoming financial year, indicating a measured yet positive outlook for the two-wheeler segment. This projection demonstrates management's confidence in sustained market demand and the company's operational capabilities.

Strategic Market Positioning

The projected high single-digit growth trajectory reflects Hero MotoCorp's strategic approach to navigating evolving market dynamics in India's two-wheeler industry. Management's guidance suggests a balanced perspective on growth opportunities while maintaining operational efficiency across various business segments.

Management Commentary

During the conference call, the company's management provided insights into their growth expectations, indicating their assessment of both internal capabilities and external market factors. The high single-digit growth projection for the next financial year represents the management's current view on business performance and market positioning in the competitive two-wheeler landscape.

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, and subsequently hosted an earnings conference call on February 6, 2026.

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. The reported net profit of Rs. 1,348.55 crore came in slightly below analyst estimates of Rs. 1,390.00 crore due to an exceptional provision of Rs. 119.00 crore related to new labour code compliance.

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.

Leadership Transition and Strategic Vision

During the earnings conference call, newly appointed CEO Harshavardhan Chitale outlined the company's strategic focus on five key growth pillars: scooters, premium motorcycles, global markets, electric vehicles, and parts & accessories business. Chitale, who joined the company in January 2026, emphasized the company's unique position with the largest vehicle park size in India, creating significant opportunities in the aftermarket parts business.

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 increase Hero MotoCorp's stake from 34.1% to approximately 36% on a fully diluted basis, enhancing participation in the rapidly growing electric three and four-wheeler market.

Interim Dividend and Key Appointments

Reinforcing its commitment to shareholder returns, the Board approved an interim dividend of Rs. 110.00 per equity share, representing 5,500% of the face value of Rs. 2.00 per share. The record date for determining dividend entitlement has been fixed as February 11, 2026, with payment completion scheduled by March 7, 2026.

Market Outlook and Growth Strategy

Management expressed confidence in the industry's growth prospects, expecting double-digit growth in the current quarter driven by strong post-festive demand and favorable macroeconomic conditions. The company reported strong performance across key markets, with particular strength in Bangladesh where it maintains market leadership, and Colombia where volumes grew over 200% with market share expanding from 5% to 9%.

For the nine months ended December 31, 2025, Hero MotoCorp reported revenue from operations of Rs. 34,033.61 crore, reflecting 10% growth, with normalized PAT of Rs. 3,957.00 crore representing 12% growth over the previous year.