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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹12,978 Cr
verified against source
Revenue YoY
29%
reported change
EBITDA
₹1,856 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Hero MotoCorp reported a strong Q4 FY26 with record revenue of INR 12,797 crore (+29% YoY), EBITDA of INR 1,856 crore (+31% YoY), and PAT of INR 1,401 crore (+30% YoY). Growth was driven by market share gains in scooters (+48% YoY), EVs (2.5x volume growth), and exports (+41% YoY). The ICE business EBITDA margin expanded 100bps YoY to 17%, while overall margin (including EV investments) improved 30bps to 14.5%. Management guided for high single-digit industry growth in FY27 and expects to outgrow the market, supported by capacity expansion (INR 1,500 crore CapEx) and new launches. However, near-term margin headwinds from commodity inflation (aluminum, steel, rubber) and wage costs are expected to be transitory, with calibrated price hikes and cost savings as mitigants. Key risk: commodity cost escalation may pressure margins if price hikes cannot fully offset rising input costs.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects the two-wheeler industry to grow at a high single-digit rate in FY27, with scooters growing slightly faster than motorcycles.
- Hero MotoCorp expects to grow ahead of the industry in both motorcycles and scooters, driven by new launches and capacity expansion.
- 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.
- Management reaffirmed its medium-term margin guidance of 14%-16%, despite near-term commodity headwinds.
Risks flagged
- Rising prices of aluminum, steel, rubber, and plastics due to West Asia tensions are pressuring margins; management expects a transitory impact but cannot fully quantify.
- EV investments (INR 220 crore in Q4) continue to drag overall margins; management did not provide a timeline for breakeven, though PLI benefits and cost reductions are expected to help.
- Potential fuel price hikes and inflation from geopolitical tensions could dampen two-wheeler demand, though no softening has been observed yet.
- The draft EPR notification for end-of-life vehicles is still evolving; management could not quantify the potential financial impact.
Key quotes
- In these focus segments, we've seen advancement in last quarter. In scooters, we saw 48% growth year-on-year. In EV, our EV scooter volumes expanded 2.5 times over the previous year.
- We are committed to our medium-term margin guidance of 14%-16%.
- The price hike that we've taken is close to 2%. Commodity and the labor cost and the fuel cost increase is far higher than that. It's in high single digits, and it's changing day by day.
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