Hero MotoCorp reported a robust Q3 FY’26, achieving its highest-ever quarterly revenue of INR12,328 crores, marking a 21% year-on-year growth. EBITDA grew by 23%, while normalized PAT rose 20% YoY. Management highlighted sustained retail momentum, strong customer acceptance of new launches like the HF Deluxe Pro and Xtreme 125R, and market share gains across core segments. The company also confirmed its 25th consecutive year as the world’s largest motorcycle manufacturer.
Q3 FY’26 Financial Highlights
Hero MotoCorp announced strong financial results for the third quarter and nine months ending December 31, 2025, during its conference call held on February 6, 2026. The company recorded its highest quarterly revenue ever at INR12,328 crores, reflecting a substantial 21% year-on-year growth.
- EBITDA stood at INR1,810 crores (up 23% YoY).
- Reported PAT was INR1,349 crores (up 12% YoY).
- Normalized PAT registered a growth of 20% YoY at INR1,489 crores.
- Overall EBITDA margins improved by 20 basis points to 14.7%, even after EV investments of INR208 crores during the quarter.
- The average selling price (ASP) increased 4.2% YoY.
- For the 9-month period, revenue grew 10% YoY to INR34,034 crores, with EBITDA growing 13% YoY.
The company also noted that it has made a provision of INR119 crores related to the new labour code, accounted for as an exceptional item.
Operational and Segment Performance
Core Market Leadership
Management expressed pride in Hero MotoCorp being the world’s largest motorcycle and scooter manufacturer for the 25th consecutive year, with 6.1 million dispatches in calendar year 2025.
In the core ICE business, the company achieved market share expansion for the fourth consecutive quarter. Market share in the core segment reached 57%, outpacing the industry. Specific segment highlights include:
- Entry Segment: The HF Deluxe Pro drove market share expansion, accounting for 20% of HF retail volumes in January ’26.
- Deluxe 100cc: Leadership was reinforced with Splendor achieving a market share of 91%, the highest since FY’18.
- Deluxe 125cc: Market share gain was driven by the Glamour X and the dual-channel variant of the Xtreme 125R.
Scooters and Premium
The ICE scooter segment saw market share increase to nearly 7%, supported by new launches in the Destini and Xoom portfolios. In the premium category, the company scaled up its Premia stores to 106 by December 2025, covering over 50% of the premium industry footprint.
EV Portfolio (VIDA)
The VIDA EV portfolio gained significant traction, with market share expanding by 6% year-on-year to 10.8% in Q3 FY’26, led by the recently launched VIDA VX2 series. The company is also supporting affordability through its Battery-as-a-Service (BaaS) offering, which continues to drive interest and inquiries.
Global Business
Global business volumes grew strongly by 41% year-on-year, with market share improving by 100 basis points YoY to 7.5%. The premium portfolio contributed 40% of total global volumes. Geographically, momentum was strong in Bangladesh and Colombia, where volumes grew over 200%, making the business profitable in the first nine months.
Forward Outlook and Strategy
New CEO Harshavardhan Chitale outlined five growth pillars focusing on scooters, premium motorcycles, EV, parts, and exports. Management expects the overall two-wheeler industry to grow by double digits in the current quarter, with a projection of high single digits for the next financial year (FY’27) due to a higher base.
On margins, while input costs (aluminum, precious metals) rose, the company implemented a price increase of INR300 per vehicle in January to mitigate commodity headwinds. Management remains confident that growth in ASP, operating leverage, and cost savings (LEAP) will allow them to maintain margin structure without substantially impacting demand.
Source: BSE
