Hero MotoCorp (HEROMOTOCO) Q1 26/27 earnings summary

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 growth across ICE, EV, premium, and global segments.

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

• Expanded manufacturing capacity to 8.63 million units, with ongoing investments in capacity, product innovation, and premiumization.

Financial highlights

• Revenue from operations reached INR 12,999 crore (up 36% YoY), EBITDA at INR 1,727 crore (up 25% YoY), and PAT at INR 1,454 crore (up 29% YoY) for Q1 FY27.

• EBITDA margin at 13.3%, down 120 bps sequentially due to commodity cost pressures, but partially offset by cost controls.

• Parts, accessories, and merchandise revenue up 30% year-over-year to INR 1,689 crore.

• EPS 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.

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

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

• Expect continued strong demand momentum in Q2 and positive industry growth for H2, despite higher base.