ICE margin tramline of 14%-16% maintained
Management reiterated the long-term ICE margin range of 14%-16%, with current margins back to pre-COVID levels.
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Hero MotoCorp · forward-looking guidance across the available source record.
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margins
EV business drag of ~100 bps on margins
The EV business (Vida) is expected to impact overall margins by approximately 100 basis points as it scales.
Double-digit industry growth expected ahead of festive season
Management expects double-digit growth for the two-wheeler industry driven by government capex, easing inflation, and good monsoons.
100 EV cities by December 2023
Vida will expand to 100 cities well before December end; currently present in 36 cities.
Xtreme 125R capacity to reach 40,000 units/month
Management plans to ramp up Xtreme 125R production from 25,000 to 40,000 units per month in the next couple of months.
Premia stores to cross 100 by end of fiscal
The company targets to have over 100 Premia stores by March 2025, up from 40 currently.
New EV products to be PLI compliant from October
The upcoming EV range expansion (mid and affordable segments) will be PLI compliant, launching from October 2024 onwards.
CapEx guidance of INR 1,000-1,200 crore per annum
Annual capital expenditure is expected to be in the range of INR 1,000-1,200 crore.
Industry growth of 6-7% for FY26
Management expects full-year two-wheeler industry growth of 6-7%, with festive season demand recovery offsetting Q1 softness.
EBITDA margin guidance of 14-16%
CFO reiterated margin guidance of 14-16%, with short-term operating at lower band due to investments.
Global business to contribute 10% of revenue/volumes
Target to achieve 10% of revenue and volumes from global business, with over 40% growth expected this year.
New 125cc motorcycle launches in Q2
Two new 125cc motorcycle launches planned in Q2 FY26 to disrupt the deluxe segment with best-in-class technology.
Premium store expansion to 100+ in six months
Hero plans to scale premium stores to over 100 in the next six months, from a recent launch.
Hero 2.0 store count to reach 500 in six months
The company aims to have 500 Hero 2.0 stores within six months, up from 200+ currently.
Harley and Karizma production ramp-up to 10,000/month
Management guided to ramp up combined production of Harley-Davidson X440 and Karizma to around 10,000 units per month in stage one.
EV portfolio expansion with new price points in FY25
Hero plans to introduce mid and more affordable EV price points in fiscal year 2025.
EBITDA margin guidance of 14%-16% maintained
Management reiterated the overall EBITDA margin range of 14%-16%, despite continued investments in EV and premium segments.
EV portfolio expansion within six months
VIDA will launch new scooter models covering most price and customer segments within six months, including before end of calendar year.
PLI benefits expected from FY2026
EV products will become PLI-compliant in FY2026, with benefits starting to accrue from that period.
Premium store expansion to accelerate
Company plans to open 100 premium stores by end of FY2025, with further acceleration expected.
H2 FY26 industry growth of 8%-10%
Management expects the two-wheeler industry to grow 8%-10% in the second half of FY26, with Hero poised to outperform and gain market share.
EBITDA margin guidance of 14%-16%
CFO reiterated the company's EBITDA margin guidance of 14%-16%, with continued investments in brand, products, and EV.
Continued market share gains in H2
Management expects to continue gaining market share across segments, driven by new products (Glamour X, Xtreme 125R, scooters) and strong festive momentum.
Double-digit industry revenue growth in FY25
Management expects the two-wheeler industry to grow at double-digit revenue in FY25, with Hero aiming to outperform.
Three new EV models in Q1 FY25 at distinct price points
Hero will launch affordable, mid, and premium EV scooters in Q1 FY25, targeting price points around INR 1 lakh, INR 1.25 lakh, and INR 1.5 lakh.
100 VIDA hubs by FY25
Hero plans to expand exclusive VIDA hubs from 18 to 100 in the next fiscal year.
PAM business capacity to INR 10,000 Cr
Investment of INR 600 Cr over two years to expand parts, accessories, and merchandise capacity to over INR 10,000 Cr annual revenue.
Double-digit revenue growth in FY26
Management expects double-digit revenue growth for the next fiscal year, driven by new launches, rural recovery, and tax relief.
EV portfolio PLI compliance by next fiscal
The V2 portfolio will become PLI compliant in the coming months, with the entire portfolio compliant by next fiscal.
Premium store count to cross 100 soon
The company plans to expand its premium store network from 60 to over 100 stores in the near term.
Hero 2.0 stores at 700 in less than 700 days
The company has opened 700 Hero 2.0 stores at a pace of more than one store per day, accelerating retail transformation.
Industry growth of high single digits in FY27
Management expects the two-wheeler industry to grow in high single digits in FY27, with moderation in H2 due to high base.
Price hike of INR 300 per vehicle in January
Hero took a price increase of INR 300 per vehicle in January to mitigate commodity cost inflation.
EV capacity expansion in FY27
VIDA expects a market increase in capacity in FY27 to meet growing demand.
Double-digit revenue growth in FY25
Management is confident of achieving double-digit revenue growth in FY25, driven by volume, mix, and pricing.
Capex guidance of INR 1,000-1,500 crore for FY25
Capital expenditure for FY25 is expected to be between INR 1,000-1,500 crore, including GPC2 expansion.
Xtreme 125R capacity ramp to 20,000-25,000 per month by June-July
Production capacity for Xtreme 125R will be increased to 1,000 units per day (approx. 20,000-25,000 per month) in the next 2-3 months.
EV portfolio expansion in H1 FY25 with PLI compliance by Q2
New EV products in mid and mass segments will be launched in H1, and PLI compliance is expected by Q2 FY25.
Industry growth of 6-7% in FY26
Management expects the two-wheeler industry to grow in the mid to high single digits (6-7%) in FY2026.
EBITDA margin guidance of 14-16%
Management reiterated guidance to maintain EBITDA margins between 14% and 16%.
EV breakeven at 25,000-30,000 monthly volumes
EV business is expected to break even at monthly volumes of 25,000-30,000 units, which is a couple of years away.
Two new affordable EV products in H1 FY26
Two new affordable EV products are planned for launch in the first half of FY26, likely in July.
Industry growth of high single-digit in FY27
Management expects the two-wheeler industry to grow at a high single-digit rate in FY27, with scooters growing slightly faster than motorcycles.
Company to outgrow industry in FY27
Hero MotoCorp expects to grow ahead of the industry in both motorcycles and scooters, driven by new launches and capacity expansion.
CapEx of INR 1,500 crore in FY27
The company has committed over INR 1,500 crore of capital expenditure in FY27 for capacity expansion in scooters, EV, and a global parts center.
Medium-term EBITDA margin guidance of 14%-16%
Management reaffirmed its medium-term margin guidance of 14%-16%, despite near-term commodity headwinds.