Hero MotoCorp (HEROMOTOCO) Q4 24/25 earnings summary

Executive summary

• Achieved highest-ever revenue and profit for FY2025, maintaining global leadership in motorcycles and scooters for 24 consecutive years, with strong growth in premium, scooter, and EV segments, and robust export performance.

• Strong Q4 performance with broad-based growth across domestic and international markets, including significant gains in the 125cc and entry segments.

• Board approved a final dividend of Rs. 65 per share, bringing total FY25 dividend to Rs. 165 per share (8,250%).

• Continued focus on execution of medium- to long-term strategy, with emphasis on product launches, market share gains, premiumization, and global expansion.

• Audit reports for both standalone and consolidated results received unmodified opinions.

Financial highlights

• FY2025 standalone revenue: Rs. 40,756 crore (up 9% YoY); Q4 revenue: Rs. 9,939 crore (up 4% YoY); standalone PAT: Rs. 4,610 crore (up 16% YoY); Q4 PAT: Rs. 1,081 crore (up 6% YoY).

• Consolidated revenue for FY25: Rs. 40,923 crore (up 8% YoY); consolidated PAT: Rs. 4,376 crore (up 17% YoY).

• EBITDA for FY25: Rs. 5,868 crore (up 12% YoY); Q4 EBITDA: Rs. 1,416 crore (up 4% YoY); EBITDA margin for FY25: 14.4% (up 40 bps YoY).

• ICE EBITDA margin for FY2025 at 16.2% (up 90 bps YoY); overall EBITDA margin at 14.4% (up 40 bps YoY) after EV investments.

• Parts, accessories, and merchandise revenue for Q4: Rs. 1,553 crore, up 11% YoY.

Outlook and guidance

• Management remains optimistic for near- to mid-term, citing supportive macroeconomic indicators such as revised tax slabs, repo rate cuts, rural recovery, and favorable monsoon.

• Industry volume growth expected at 6-7% for FY2026, with the company aiming to outpace industry growth and gain market share.

• Continued investments in premium scooters, EVs, and customer experience initiatives, with plans to enter Europe and UK in H2 2025.

• Margin guidance maintained at 14-16% EBITDA.