Hero MotoCorp (HEROMOTOCO) investor relations material

Executive summary

• Standalone H1 FY27 revenue grew 28% YoY to ₹27,686 crore and PAT rose 16% to ₹2,911 crore.

• Consolidated Q2 revenue rose 23% YoY to ₹14,970.50 crore and PAT increased 41% to ₹1,860.55 crore, including a ₹397 crore associate gain.

• Growth priorities include market-share gains, premiumization, EV scale-up and capacity investment, while progressing toward a 14%-16% medium-term EBITDA margin.

Financial highlights

• Standalone Q2 revenue from operations was ₹14,687 crore, up 21% YoY; EBITDA was ₹1,968 crore, up 8%; PAT was ₹1,456 crore, up 5%.

• Consolidated H1 revenue was ₹28,096.85 crore, up 28% YoY, and PAT was ₹3,278.48 crore, up 8%; standalone H1 EBITDA rose 15% to ₹3,694 crore.

• Q2 revenue growth outpaced dispatch growth, supported by portfolio mix and pricing; premium mix contributed a 5% positive mix impact.

• H1 parts, accessories and merchandise revenue was ₹3,630 crore, up 28%; Q2 revenue was ₹1,941 crore, up 27%.

• H1 net cash from operating activities was ₹3,228.22 crore consolidated and ₹3,239.26 crore standalone.

Outlook and guidance

• Q3 FY27 EBITDA margins are expected to remain broadly stable despite marginal input-cost inflation, supported by cost savings, VIDA unit economics and targeted pricing.

• The medium-term EBITDA margin target remains 14%-16%; management expects to reach the range in the next few quarters as commodity costs normalize.

• FY27 capex guidance remains ₹1,500 crore, with nearly ₹600 crore deployed in H1; production capacity is targeted to reach 9.2 million units by March 2027.

• Export wholesale growth is expected to return to double digits in Q3 and Q4 as Colombia logistics normalize; domestic two-wheeler industry growth is projected at mid- to high-single digits in H2.

• VIDA capacity is planned to reach 45,000 units/month by Q4 and over 80,000/month by Q2 next FY; GPC 2.0 is designed to double parts-handling capacity.