Hero MotoCorp (HEROMOTOCO) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue and PAT in Q2 FY25, with revenue at INR 10,463 crores (up 11% YoY) and PAT at INR 1,204 crores (up 14% YoY), supported by strong performance across all business segments and record results in parts, accessories, and merchandise.

• H1 FY25 revenue reached INR 20,607 crores (up 13% YoY) and PAT at INR 2,326 crores (up 24% YoY).

• Best-ever retail sales during the festival period at 1.6 million units, with 13% growth and improved market share, driven by both rural and urban demand.

• Robust cash flows and a strengthened balance sheet provide flexibility for aggressive investments in growth priorities, especially EV and premium segments.

Financial highlights

• Q2 FY25 EBITDA at INR 1,516 crores, up 14% YoY; EBITDA margin expanded by 40 bps to 14.5%.

• H1 FY25 EBITDA at INR 2,976 crores, up 17.4% YoY; margin expanded by 50 bps to 14.4%.

• Cash from operations in H1: INR 2,817 crores, up 160% YoY.

• Parts, accessories, and merchandise revenue: INR 1,456 crores, up 7.5% YoY.

• Q2 standalone EPS at INR 60.18; H1 EPS at INR 116.33.

Outlook and guidance

• Plans to launch three new premium motorcycles and three new ICE scooters by March 2025.

• Continued expansion of premium stores, targeting over 100 by fiscal year-end.

• Optimistic about continued demand in both rural and urban markets, with positive economic and sectoral outlook.

• Margin guidance maintained at 14%-16% despite ongoing investments in growth and EV.

• PLI benefits for EVs expected to start accruing from FY 2026.