Hero MotoCorp Ltd Q4 FY26 Earnings Analysis
Published 6 Jul 2026 | Automobiles | Market Cap: ₹1.1L Cr
Price
₹5,795
Market Cap
₹1.1L Cr
P/E Ratio
19.8
How does Hero MotoCorp Ltd rank in Automobiles?
Compare Hero MotoCorp Ltd against every Automobiles company this quarter on revenue, margins and earnings-call signals.
Hero MotoCorp Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹13.0K Cr, net profit ₹1.5K Cr.
Full financials →Earnings Summary
Industry expects high single-digit volume growth in FY '27, with scooters growing a couple of points more than motorcycles. Hero MotoCorp expects high single-digit volume growth in FY '27, with scooters growing faster than motorcycles.
📊 Revenue & Sales Performance
- →Industry expects high single-digit volume growth in FY '27, with scooters growing a couple of points more than motorcycles.
- →Hero MotoCorp plans to outgrow the industry in both motorcycles and scooters in FY '27.
- →Expansion in scooter capacity: Destini capacity increased by 50%, Xoom capacity being doubled this quarter.
- →EV capacity to more than double by the end of FY '27 (from 15,000 to 30,000 monthly, with further doubling planned).
- →Growth driven by multiple new launches across commuter and high displacement bikes, and new products in the VIDA electric segment.
- →Expects continued momentum in premium, scooter, EV, and global business segments.
- →Confident in growing ahead of the industry aided by resilient demand and upcoming product launches.
- →Spare parts sales showed a 6% YoY growth; total revenue for parts business expected to have significant headroom.
📈 Profitability & Margins
- →Hero MotoCorp expects high single-digit volume growth in FY '27, with scooters growing faster than motorcycles.
- →The company plans to outgrow industry growth in both motorcycles and scooters with multiple new launches and capacity expansions.
- →Despite commodity cost headwinds, calibrated price increases and cost-saving programs (LEAP savings) aim to mitigate margin pressures.
- →Medium-term EBITDA margin guidance is maintained at 14% to 16%, though short-term transitionary impacts on margins are expected.
- →EV business losses per unit are declining quarter-on-quarter; PLI incentives for about 60% of the EV portfolio (targeting 90%) are expected to improve profitability.
- →Continued revenue growth driven by premium, scooters, EV, and global business portfolios.
- →Strong cash flow improvements and consistent dividend payout (>70%) reflect robust financial health supporting growth investments.
🏗️ Capital Expenditure Plans
- →₹1,500 crores capex planned for FY '27, focused on capacity expansion in scooters and EVs.
- →Doubling capacity for some popular scooter models, including Destini (already increased 50%) and Xoom (in process of doubling).
- →EV capacity to double within a month from last year’s start, with further doubling planned in upcoming quarters.
- →₹700 crores committed to build a second global parts center in South India, doubling parts handling capacity.
- →Continued investment in brand building with a 22% increase in advertising and promotion spend last year, to continue this year.
- →Strong focus on new product launches across VIDA brand, premium ranges, and scooters throughout the year.
- →Investments in technology including low-emission powertrains (EV and ethanol blends), connected vehicles, and digital technology with AI integration.
- →Ongoing follow-on investments in strategic EV companies like Euler, with shareholding close to 37%.
💰 Fundraising & Capital Structure
- →There is no mention of any new or planned fundraising through debt or equity in the provided pages.
- →The company discussed investments, such as a ₹210 crore follow-on investment in Euler, but clarified it is not a regular ₹200 crore quarterly investment.
- →Capex commitments include over ₹1,500 crores planned for FY '27 for capacity expansion, but funding sources are not specified as new fundraising.
- →No explicit reference made to raising funds via equity or debt issuance.
- →Operational cash flow and cost management are emphasized, with strong cash flow from operations reported (₹9,395 crores for FY '26).
- →The company appears to be funding investments primarily through internal accruals rather than new fundraising.
📋 Order Book & Pipeline
Key Metrics
Frequently Asked Questions
What were Hero MotoCorp Ltd Q4 FY26 results?
Industry expects high single-digit volume growth in FY '27, with scooters growing a couple of points more than motorcycles. Hero MotoCorp expects high single-digit volume growth in FY '27, with scooters growing faster than motorcycles.
What is Hero MotoCorp Ltd share price analysis?
Hero MotoCorp Ltd currently shows a neutral. The stock trades at a P/E of 19.8 with a market cap of ₹113,853 Cr. Investors should review the full earnings analysis for detailed insights.
Is Hero MotoCorp Ltd planning capital expenditure?
₹1,500 crores capex planned for FY '27, focused on capacity expansion in scooters and EVs.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.