Hero MotoCorp announced its financial results for the second quarter of fiscal year 2027, reporting a 21% year-on-year increase in revenue from operations to INR 14,687 crore. Profit after tax grew by 5% to INR 1,456 crore. The company’s performance was driven by a 10.5% rise in total wholesale volumes, with significant growth in both ICE and EV segments, alongside a favorable product mix and calibrated pricing strategies.
Hero MotoCorp Q2 FY27 Earnings Overview
Hero MotoCorp Limited has announced its financial performance for the second quarter of the fiscal year ending March 31, 2027. The company reported a strong top-line growth, with revenue from operations reaching INR 14,687 crore, marking a significant 21% increase year-on-year. EBITDA for the quarter grew by 8% to INR 1,968 crore, while profit after tax stood at INR 1,456 crore, up 5% compared to the previous year.
Volume and Revenue Drivers
The company’s robust performance was underpinned by a total wholesale volume expansion of 10.5% year-on-year. This growth was supported by an 8.4% increase in the ICE business and an impressive 98% growth in the EV business. Revenue growth outpaced volume growth, attributed to portfolio premiumization, an increasing share of ICE and EV scooters, and premium variants, contributing a 5% positive mix impact, further aided by calibrated pricing.
Operational Highlights and Segments
Hero MotoCorp highlighted strong performance across various segments. The 2-wheeler industry saw a retail growth of over 27%, with ICE growing at 23% and EV at 82%. Hero MotoCorp’s ICE retails outpaced industry growth with a 24% year-on-year increase. The scooter segment showed continued traction, with ICE scooter dispatches growing 34% year-on-year in Q2. The 100cc motorcycle category saw 10% growth in Q2, while the EV portfolio, under the VIDA brand, grew retail volumes by 105% year-on-year.
The Parts business also recorded a healthy 27% revenue growth. In global business, despite logistical challenges in some markets, retail sales grew by 19%. The premium portfolio saw over 30% retail growth in the first half of FY27.
Financial Performance Details
Cash flow from operations for the quarter stood at INR 2,159 crore. On a consolidated basis, revenue increased by 23% year-on-year to INR 14,971 crore, with PAT growing by 41% to INR 1,861 crore. This consolidated figure includes a INR 397 crore one-time gain from the equity consolidation of an associate company.
Cost Management and Margins
Addressing cost headwinds from commodity inflation, the company continued its 4-point action plan, focusing on premium variants, LEAP program savings, judicious pricing, and improving EV unit economics. The VIDA business turned gross margin positive in the quarter. While gross margin compressed by 30 basis points quarter-on-quarter, strict overhead control led to a 10 basis point quarter-on-quarter expansion in EBITDA margins to 13.4%.
Outlook and Future Plans
Looking ahead, Hero MotoCorp expects input cost inflation pressure to persist in Q3 FY27 due to global conflicts and commodity prices. However, the company plans to mitigate this through cost rationalization, LEAP savings, and unit economics improvements, aiming for stable margins in Q3. The medium-term focus remains on driving EBITDA growth towards a target margin corridor of 14% to 16%. The company is committed to investing in new products and capacity expansion across its premium, scooter, EV, and global business portfolios.
Source: BSE
