Hero MotoCorp reported robust financial results for the first quarter of FY27. Revenue from operations saw a substantial 36% increase year-on-year, reaching ₹12,999 crore. This growth was driven by a 23% rise in volume, mix improvement, and pricing benefits. EBITDA grew by 25% to ₹1,727 crore, while Profit after Tax surged by 29% to ₹1,454 crore, supported by higher volumes and other income.

Hero MotoCorp: Investor Presentation for Q1 FY27

Strong Financial Performance

Hero MotoCorp has released its investor presentation for the first quarter of the financial year 2027 (Q1 FY27), highlighting significant year-on-year growth across key financial metrics. The company reported a revenue from operations of ₹12,999 crore, marking a substantial increase of 36% compared to Q1 FY26. This impressive revenue growth was attributed to a volume growth of 23%, alongside improvements in product mix and beneficial pricing strategies.

Profitability and Margins

The company’s operational performance also saw considerable improvement, with EBITDA growing by 25% to reach ₹1,727 crore in Q1 FY27. The EBITDA margin stood at 13.3%, which, despite being impacted by commodity headwinds, was partially offset by successful cost-saving measures and operating leverage. Profit after Tax (PAT) demonstrated a strong upward trend, increasing by 29% to ₹1,454 crore in the same period. This PAT growth was underpinned by increased volumes and contributions from other income sources.

Key Growth Pillars and Segment Performance

The presentation outlines Hero MotoCorp’s strategic focus on key growth pillars, including strengthening its core business, gaining market share in the 125cc segment, winning in the premium category, and driving scooter market share. The company is also emphasizing EV leadership, global business expansion, and building a future-fit organization. In terms of segment performance, total dispatches grew by 23% to 1,677,000 units in Q1 FY27. ICE scooters saw a notable 107% dispatch growth, while VIDA (EV scooters) achieved a remarkable 151% growth, underscoring the company’s strategic push into electric mobility.

EV Leadership and Expansion

Hero MotoCorp’s EV division, VIDA, is demonstrating strong market share gains, with Vida Retails growing and market share expanding to 10.9% in Q1 FY27. The company is investing in brand building and addressing adoption barriers with a differentiated ecosystem, including removable batteries and a fast-charging network. Capacity expansion is also underway, with plans to double capacity by December 2026. Furthermore, VIDA is expanding its portfolio to target key white spaces and exploring new growth platforms, including the launch of the DIRT.E K3 electric off-road motorcycle.

ICE Scooters and Premium Motorcycles

The ICE scooter segment is experiencing strong customer response, with domestic dispatches reaching 123,000 units and market share growing to 6.9% in Q1 FY27. For premium motorcycles, Hero MotoCorp is focusing on product portfolio expansion, Premia channel expansion, and community building. The company is also planning multiple new launches in FY27 to further strengthen its premium offerings.

Deluxe 125cc and Core Motorcycles

The Deluxe 125cc segment is showing sustained market share recovery, with dispatches at 160,000 units and market share climbing to 17.8% in Q1 FY27. In the core 100cc motorcycle segment, Hero MotoCorp is reinforcing its leadership with record market share of 85.8% and domestic dispatches of 1,217,000 units in Q1 FY27. The company is also introducing flex-fuel variants to cater to evolving fuel landscape.

Global Business and Parts Segment

Global business operations are accelerating, with market share expansion continuing in international markets. Total dispatches reached 105,000 units with a market share of 6.8% in Q1 FY27. The parts, accessories, and merchandise segment is being developed as a scalable growth engine, with PAM revenue growing by 30% to ₹1,689 crore in Q1 FY27. The company is also expanding its global parts center capacity and increasing its distribution depth.

Investment for Growth

Hero MotoCorp is investing for growth, with a FY27 Capex guidance of ₹1,500 crore. This includes capacity expansion for commuter motorcycles, ICE scooters, GPC 2.0, EV scooters, and premium motorcycles. The company is augmenting EV capacity and increasing premium line capacity to meet rising demand and accelerate portfolio growth.

ESG and CSR Initiatives

The company continues to focus on ESG (Environmental, Social, and Governance) and CSR (Corporate Social Responsibility). Hero MotoCorp has received several awards and recognitions for its sustainability efforts, including the ‘Most Sustainable Company in Automobiles’ award. Key CSR initiatives include road safety projects, support for para-athletes, and extensive medical outreach programs. The company has also set ambitious sustainability targets, including 50% Green dealerships and sustained 100% Zero Waste to Landfill operations.

Source: BSE