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, 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.