Hero MotoCorp (HEROMOTOCO) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 standalone revenue was INR 9,579 crore with PAT at INR 1,126 crore; consolidated PAT reached INR 1,706 crore, including a one-time gain of INR 722 crore from associate investment dilution.

• 13.67 lakh two-wheelers sold in Q1 FY 2026; robust market share gains in entry, scooter, and EV segments, with Wahan share at 30.9% and EV market share at 7% for the quarter, surpassing 10% in July.

• Product portfolio expanded in 125cc scooter and 100cc motorcycle segments; premium channel footprint grew to 125 outlets, covering over 45% of the premium industry.

• Festive season outlook is optimistic, supported by low inflation, RBI rate cuts, and favorable monsoons, expected to boost two-wheeler demand.

• Electric mobility business (VIDA) gained traction with the launch of VIDA VX2 and Battery-as-a-Service model.

Financial highlights

• Standalone Q1 FY 2026 revenue: INR 9,579 crore; EBITDA: INR 1,382 crore; PAT: INR 1,126 crore; consolidated EBITDA: INR 1,413 crore; consolidated PAT: INR 1,706 crore.

• EBITDA margin for ICE business improved to 16.8%; overall standalone EBITDA margin at 14.4%, consolidated at 14.5%.

• Average selling price up 6% YoY, but down sequentially due to seasonality.

• Parts, accessories, and merchandise revenue: INR 1,296 crore.

• Earnings per share (EPS) for Q1 FY 2026: standalone INR 56.28, consolidated INR 85.26.

Outlook and guidance

• Expectation to grow ahead of industry, with full-year industry growth forecast at 6-7%, despite Q1 retail growth of 3-3.5%.

• Margins guided to operate between 14-16%, with near-term at lower end due to volume and cost dynamics.

• Management confident of sustaining growth, supported by strong product pipeline, festive season, and favorable customer sentiment.

• Continued investment in premium, scooters, and EVs, with new launches planned for festive season.