Hero MotoCorp (HEROMOTOCO) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 10,144 crore, up 16% year-over-year, and highest ever profit after tax (PAT) of INR 1,123 crore, up 36% year-over-year.

• Sold 15.35 lakh two-wheelers in Q1 FY'25, compared to 13.53 lakh in Q1 FY'24.

• Strong sequential recovery in Entry and 125cc segments, with 125cc market share rising from 13% to 20% quarter-over-quarter.

• Rural demand led growth, with optimism for the upcoming festive season and positive economic sentiment.

• Expansion of EV (Vida) and Premium portfolios, with new launches and network expansion planned within the fiscal year.

Financial highlights

• Standalone EBITDA reached INR 1,460 crore, up 21% year-over-year; EBITDA margin expanded to 14.4%.

• Profit before tax (PBT) stood at INR 1,494 crore, up 36% year-over-year.

• ICE margins improved to 16.4%; overall EBITDA margin at 14.4% after accounting for EV business impact.

• EV business contributed a negative 198 basis points to margins, equating to INR 181 crore impact.

• EV revenue for the quarter was INR 125 crore from 10,000+ units sold.

Outlook and guidance

• Positive demand outlook driven by improved customer sentiment, good monsoons, and upcoming festive season.

• Expecting to grow ahead of industry, driven by rural recovery, 125cc ramp-up, and Premium segment investments.

• Multiple product launches planned in both ICE and EV segments in the next two quarters.

• Portfolio expansion in EV and Premium segments, with affordable EV products launching later this year.

• CapEx guidance for the year is INR 1,000–1,200 crore; R&D spend to remain at ~2.2% of revenue.