Hero MotoCorp (HEROMOTOCO) investor relations material

Executive summary

• Achieved 36% year-over-year revenue growth in Q1 FY27, driven by a 23% increase in volumes, improved product mix, and pricing benefits, with strong demand across ICE, EV, premium, and global segments.

• Maintained market leadership as the world's largest motorcycle and scooter company for 25 years, present in 53 global markets with over 130 million customers.

• Expanded manufacturing capacity to 8.63 million units, with ongoing investments in capacity and product innovation across motorcycles, scooters, and EVs.

• EBITDA margin stood at 13.3% for Q1 FY27, impacted by commodity cost pressures but supported by disciplined cost management.

• Strategic focus on premiumization, EVs, scooters, and global markets continues to yield positive results.

Financial highlights

• Revenue from operations reached INR 12,999 crore (standalone), up 36% YoY; consolidated revenue was INR 13,126 crore, up 35% YoY.

• EBITDA at INR 1,727 crore (standalone), up 25% YoY; consolidated EBITDA at INR 1,746 crore, up 24% YoY.

• PAT at INR 1,454 crore (standalone), up 29% YoY; consolidated PAT at INR 1,418 crore.

• Parts, accessories, and merchandising business revenue was INR 1,689 crore, up 30% YoY.

• Earnings per share for the quarter: Standalone INR 72.69; Consolidated INR 70.59.

Outlook and guidance

• FY27 CAPEX guidance set at INR 1,500 crore, focusing on capacity expansion for motorcycles, scooters, EVs, and premium products.

• Plans to double EV capacity by December 2026 and commission a new Global Parts Centre by end of 2027.

• Medium-term EBITDA margin target remains at 14%-16%, with focus on absolute EBITDA growth amid ongoing cost pressures.

• Management remains optimistic, focusing on premiumisation, electric mobility, and global expansion.

• Continued investments in technology, innovation, and customer experience to drive sustainable and profitable growth.