Hero MotoCorp , India's leading two-wheeler manufacturer, has unveiled its strategic plans for significant expansion in the global market. The company aims to boost its exports by over 40% this year and plans to generate 10% of its revenue from international business, signaling a strong push for global growth.

Electric Vehicle Success

Hero MotoCorp has made significant strides in the electric vehicle (EV) segment. The company reported a record 7% market share in the EV space, more than doubling its presence year-over-year. July saw an even more impressive performance, with the company's EV market share exceeding 10%. This rapid growth underscores Hero MotoCorp's commitment to sustainable mobility solutions and its ability to adapt to changing market demands.

Industry Outlook and Financial Performance

Despite a somewhat sluggish start to the year, with Q1 retail growth at 3-3.5%, Hero MotoCorp remains optimistic about the two-wheeler industry's prospects. The company projects a 6-7% growth for the sector this year.

Financially, Hero MotoCorp anticipates EBITDA margins to range between 14-16%, although short-term margins are expected to be at the lower end of this spectrum. This outlook suggests a cautious yet positive stance on profitability amid market challenges.

According to the company's latest financial results:

While standalone revenue showed a slight decline, the consolidated profit after tax (PAT) saw a significant increase, rising from ₹1,032.00 crore to ₹1,736.00 crore year-over-year.

Product Pipeline

Hero MotoCorp is set to expand its product lineup, with plans to introduce two new 125cc motorcycles in Q2 FY2026. One of these models will feature advanced technology, while the other will cater to the sporty segment, demonstrating the company's commitment to diversifying its offerings and catering to different consumer preferences.

Harley-Davidson Partnership

The company's collaboration with Harley-Davidson continues to bear fruit. A new model under this partnership is expected to be launched in Q2, with additional models planned for 2026. This strategic alliance allows Hero MotoCorp to tap into the premium motorcycle segment while providing Harley-Davidson with a strong foothold in the Indian market.

Hero MotoCorp's ambitious targets and strategic initiatives reflect its determination to strengthen its position both domestically and internationally. As the company navigates the evolving two-wheeler market, its focus on exports, electric vehicles, and product diversification could be key drivers for future growth.

Hero MotoCorp , the world's largest manufacturer of motorcycles and scooters, has announced robust financial results for the first quarter of fiscal year 2026 (April-June 2025), showcasing growth in key segments and promising outlook for the future.

Financial Highlights

Hero MotoCorp reported a consolidated revenue of Rs. 9,728.00 crore for Q1 FY'26, with a significant jump in Profit After Tax (PAT) to Rs. 1,706.00 crore, compared to Rs. 1,032.00 crore in the same quarter of the previous year. The company's standalone revenue from operations stood at Rs. 9,579.00 crore, with a PAT of Rs. 1,126.00 crore.

The company's EBITDA margin remained steady at 14.40% on a standalone basis, while the consolidated EBITDA margin improved slightly to 14.50% from 14.30% in the previous year.

Strong Performance in Key Segments

Hero MotoCorp witnessed strong growth in its electric mobility division under the VIDA brand, reinforcing its position in the evolving EV segment. The company's global business operations outperformed industry trends, driven by growth in key international markets and an expanding portfolio across both premium and commuter motorcycles.

During the quarter, Hero MotoCorp strengthened its product positioning through portfolio enrichments. In the 125cc scooter segment, the Destini 125 and Xoom 125 led the charge. The company also expanded its HF Deluxe Portfolio in the 100cc motorcycle segment with the launch of the HF Deluxe Pro.

Electric Mobility Initiatives

VIDA, Hero MotoCorp's electric mobility brand, introduced a pioneering subscription-based Battery-as-a-Service (BaaS) model starting July 1, 2025, along with a new product, the EVOOTER VX2. The company also unveiled a high-impact television and digital campaign – 'Charging Simple Hai' during the Indian Premier League (IPL) season, highlighting its revolutionary removable battery technology.

Global Expansion and Product Strategy

Hero MotoCorp announced the launch of four new products – Xoom 110 scooter, Hunk 160R 4V, Xtreme 125R, and HF Deluxe motorcycles – in partnership with its long-standing distributor, Abans Auto in Sri Lanka. This move is expected to strengthen the company's presence in international markets.

In the premium segment, the Harley-Davidson 2025 lineup was revealed, featuring the re-introduced Street Bob, along with the all-new Road Glide and Street Glide models.

Retail Network Expansion

The company inaugurated the first Hero Premia Stores in Murshidabad, Nashik, and Muzaffarpur, and the fourth in Bangalore, marking 100 such outlets across the country. This expansion is aimed at enhancing the company's retail presence and customer experience.

Management Commentary

Vivek Anand, Chief Financial Officer of Hero MotoCorp, commented on the performance, saying, "Our profitability and margins remained resilient, supported by strong demand for our entry & deluxe motorcycles and 125cc scooter segments. We are witnessing good traction in our electric mobility business (VIDA), and global operations also remained ahead of industry, reflecting the strength of our brand in international markets. With favourable customer sentiment, upcoming festive season and a robust pipeline of new product launches, we are confident of sustaining and driving growth in the coming quarters."

Future Outlook

Hero MotoCorp expects demand to remain healthy in the coming quarters, supported by the upcoming festive season and a robust line-up of new products. The company's retail demand in Q1 remained steady, as reflected in higher VAHAN registrations.

With its strong financial performance, growing presence in the electric mobility sector, and expanding global footprint, Hero MotoCorp appears well-positioned to capitalize on the evolving two-wheeler market landscape.

Note: All financial figures are in Indian Rupees (Rs.)