Hero MotoCorp announced robust financial results for the first quarter of fiscal year 2027, with revenue soaring 36% year-on-year to ₹12,999 crore. Total volume grew by a healthy 23%, driven by strong demand in both ICE and EV segments. The company also highlighted strategic capacity expansions and new product launches aimed at driving future growth.
Hero MotoCorp Reports Strong Q1 FY27 Performance
Hero MotoCorp Limited has posted strong financial results for the first quarter of fiscal year 2027 (ended June 30, 2026). The company recorded a significant increase in revenue, which grew by 36% year-on-year to ₹12,999 crore. This top-line expansion was supported by a robust 23% year-on-year growth in total volumes.
Key Financial Highlights
The company achieved an EBITDA of ₹1,727 crore and a profit after tax of ₹1,454 crore for the quarter. This performance reflects healthy underlying market demand and the positive reception of its new product offerings.
Volume Growth and Segment Performance
Total volume for the quarter saw a strong 23% increase. The ICE portfolio registered a steady 21% growth, while the EV business experienced an exceptional 151% surge. This broad-based growth was attributed to improved affordability, healthy urban and rural demand, and accelerated EV adoption.
Strategic Initiatives and Capacity Expansion
Hero MotoCorp emphasized its focus on premiumization, EV, scooters, and global business expansion. The company has undertaken strategic initiatives to manage commodity cost pressures, including improving product mix, optimizing operating expenses, and implementing judicious price actions. Capacity expansion is a key focus, with EV production capacity set to triple to 45,000 units per month by the end of the financial year. Significant capacity enhancements have also been made for models like Splendor and Destini.
New Product Launches and Technology Advancements
The quarter saw the launch of several new models, including the Super Splendor XTEC 2.0 and Passion Plus Disc variant. In the EV segment, new variants of VIDA V1 were introduced, offering enhanced range and charging capabilities. The company also highlighted its continued investment in new powertrains, including the recent introduction of flex fuel variants for its core commuter motorcycles.
Market Share Gains
Hero MotoCorp reported an increase in wholesale market share by 30 basis points in Q1 FY27. The company gained market share in ICE scooters by 2.3% and saw substantial gains in its EV business, acquiring over 400 basis points of market share within a year.
Global Business and Parts Segment
The global business also saw market share expansion of 110 basis points. The profitable parts and accessories business demonstrated strong growth of 30% year-on-year.
Outlook and Future Focus
Looking ahead, Hero MotoCorp aims to continue driving EBITDA growth while progressing towards its medium-term EBITDA margin target of 14% to 16%. The company plans to focus on capacity expansion, brand building, and product innovation to support its growth in premium, scooter, EV, and global segments.
Source: BSE
