This article first appeared on GuruFocus .
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Quarterly Revenue:INR 12,328 crore, a year-on-year growth of 21%.
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EBITDA:INR 1,810 crore, a growth of 23% year-on-year.
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Reported PAT:INR 1,349 crore, a growth of 12% year-on-year.
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Normalized PAT:INR 1,489 crore, a growth of 20% year-on-year.
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Exceptional Item:Provision of INR 119 crore for new labor code.
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Nine Months Revenue:INR 34,034 crore, a year-on-year growth of 10%.
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ICE Business EBITDA Margin:Expanded by 100 bps year-on-year to 17%.
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Overall EBITDA Margin:Improved by 20 basis points to 14.7%.
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Average Selling Price Increase:4.2% year-on-year and 1.3% quarter-on-quarter.
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Parts, Accessories, and Merchandise Revenue:INR 1,673 crore, a growth of 8% year-on-year.
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Operating Cash Generated:INR 7,045 crore for nine months.
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Market Share in Deluxe 100cc Category:Achieved 91%, highest since FY18.
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Market Share in ICE Scooter Segment:Increased to close to 7%.
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VIDA EV Market Share:Expanded by 6% year-on-year to 10.8% in Q3 FY26.
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Global Business Volume Growth:41% year-on-year.
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Global Market Share:7.5%, up 100 basis points year-on-year.
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Release Date: February 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Hero MotoCorp Ltd ( BOM:500182 ) recorded its highest ever quarterly revenue of INR12,328 crore, reflecting a year-on-year growth of 21%.
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The company achieved a market share of 91% in the Deluxe 100cc category, the highest level since financial year '18.
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Hero MotoCorp's global business volumes grew by 41% year-on-year, with market share increasing by 100 basis points to 7.5%.
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The company reported the highest quarterly revenue from parts, accessories, and merchandise business at INR1,673 crore, an 8% year-on-year growth.
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Hero MotoCorp was recognized as an ESG leader among automobile companies by NSE Sustainability Rating and Analytics Limited.
Negative Points
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The company faced a 40 to 50 basis points impact from rising commodity prices, particularly in aluminium and precious metals.
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Hero FinCorp's losses have been increasing over the last three quarters, raising concerns about financing availability.
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There is still some under-indexing in the electric two-wheeler segment compared to peers.
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The company has taken a provision of INR119 crore due to the new labor code, reported as an exceptional item.
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Despite strong growth, Hero MotoCorp is still underrepresented in high-growth categories like scooters and EVs.
Q & A Highlights
Q: Can you provide insights on the growth trends between urban and rural markets, and the volatility in volumes observed in recent months? A: Both urban and rural markets are experiencing strong growth, with urban areas benefiting from income tax benefits. Rural markets showed strong demand during festive seasons, and we expect continued strength in Q4 due to the wedding season. The volatility in volumes was partly due to the timing of festive seasons, but overall growth remains robust. (Ashutosh Varma, Chief Business Officer - India Business Unit)
Q: What is the outlook for FY27 growth, and how are commodity price increases being managed? A: We expect the industry to grow in high single digits in FY27, with strong momentum in Q3 and Q4. Commodity price increases have impacted margins by 40-50 basis points, but we have taken price increases and are monitoring the situation closely to ensure financial resilience. (Vivek Anand, Chief Financial Officer)
Q: What are Hero MotoCorp's plans for the electric two-wheeler segment, especially regarding competitive pricing? A: We have launched the VIDA VX2 series, which includes variants priced below INR1 lakh. We also offer Battery-as-a-Service to improve affordability. We are focused on expanding our EV portfolio based on consumer insights. (Kausalya Nandakumar, Chief Business Officer)
Q: Can you provide an update on Hero MotoCorp's export strategy and performance? A: We have seen significant growth in exports, with a 50% increase year-to-date. Key markets include Bangladesh, Colombia, and new expansions in Europe and Africa. We are focusing on top 10 markets and have launched new products tailored to specific market needs. (Harshavardhan Chitale, Chief Executive Officer)
Q: How is Hero MotoCorp addressing supply chain challenges, and what is the strategy for capacity expansion? A: We are working closely with suppliers to ensure capacity augmentation, especially in high-growth areas like EVs and exports. We are committed to maintaining strong supplier relationships and co-developing solutions to meet demand. (Harshavardhan Chitale, Chief Executive Officer)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
