Hero MotoCorp Management Guidance Tracker

46 forward-looking guidance items tracked across 12 quarters.

Margins

Q1 FY24ICE margin tramline of 14%-16% maintainedActive

Management reiterated the long-term ICE margin range of 14%-16%, with current margins back to pre-COVID levels.

Q1 FY24EV business drag of ~100 bps on marginsActive

The EV business (Vida) is expected to impact overall margins by approximately 100 basis points as it scales.

Q2 FY25EBITDA margin guidance of 14%-16% maintainedActive

Management reiterated the overall EBITDA margin range of 14%-16%, despite continued investments in EV and premium segments.

Q4 FY25EBITDA margin guidance of 14-16%Active

Management reiterated guidance to maintain EBITDA margins between 14% and 16%.

Q1 FY26EBITDA margin guidance of 14-16%Active

CFO reiterated margin guidance of 14-16%, with short-term operating at lower band due to investments.

Q2 FY26EBITDA margin guidance of 14%-16%Active

CFO reiterated the company's EBITDA margin guidance of 14%-16%, with continued investments in brand, products, and EV.

Q4 FY26Medium-term EBITDA margin guidance of 14%-16%Tracked

Management reaffirmed its medium-term margin guidance of 14%-16%, despite near-term commodity headwinds.

Growth

Q1 FY24Double-digit industry growth expected ahead of festive seasonActive

Management expects double-digit growth for the two-wheeler industry driven by government capex, easing inflation, and good monsoons.

Q2 FY24Harley and Karizma production ramp-up to 10,000/monthActive

Management guided to ramp up combined production of Harley-Davidson X440 and Karizma to around 10,000 units per month in stage one.

Q3 FY24Three new EV models in Q1 FY25 at distinct price pointsActive

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.

Q4 FY24Xtreme 125R capacity ramp to 20,000-25,000 per month by June-JulyActive

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.

Q1 FY25Xtreme 125R capacity to reach 40,000 units/monthActive

Management plans to ramp up Xtreme 125R production from 25,000 to 40,000 units per month in the next couple of months.

Q2 FY25PLI benefits expected from FY2026Tracked

EV products will become PLI-compliant in FY2026, with benefits starting to accrue from that period.

Q3 FY25EV portfolio PLI compliance by next fiscalActive

The V2 portfolio will become PLI compliant in the coming months, with the entire portfolio compliant by next fiscal.

Q4 FY25Industry growth of 6-7% in FY26Tracked

Management expects the two-wheeler industry to grow in the mid to high single digits (6-7%) in FY2026.

Q4 FY25EV breakeven at 25,000-30,000 monthly volumesTracked

EV business is expected to break even at monthly volumes of 25,000-30,000 units, which is a couple of years away.

Q1 FY26Industry growth of 6-7% for FY26Tracked

Management expects full-year two-wheeler industry growth of 6-7%, with festive season demand recovery offsetting Q1 softness.

Q2 FY26H2 FY26 industry growth of 8%-10%Active

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.

Q2 FY26Continued market share gains in H2Active

Management expects to continue gaining market share across segments, driven by new products (Glamour X, Xtreme 125R, scooters) and strong festive momentum.

Q3 FY26Industry growth of high single digits in FY27Tracked

Management expects the two-wheeler industry to grow in high single digits in FY27, with moderation in H2 due to high base.

Q4 FY26Industry growth of high single-digit in FY27Tracked

Management expects the two-wheeler industry to grow at a high single-digit rate in FY27, with scooters growing slightly faster than motorcycles.

Q4 FY26Company to outgrow industry in FY27Tracked

Hero MotoCorp expects to grow ahead of the industry in both motorcycles and scooters, driven by new launches and capacity expansion.

Expansion

Q1 FY24100 EV cities by December 2023Active

Vida will expand to 100 cities well before December end; currently present in 36 cities.

Q2 FY24Premium store expansion to 100+ in six monthsActive

Hero plans to scale premium stores to over 100 in the next six months, from a recent launch.

Q2 FY24Hero 2.0 store count to reach 500 in six monthsActive

The company aims to have 500 Hero 2.0 stores within six months, up from 200+ currently.

Q3 FY24100 VIDA hubs by FY25Tracked

Hero plans to expand exclusive VIDA hubs from 18 to 100 in the next fiscal year.

Q1 FY25Premia stores to cross 100 by end of fiscalTracked

The company targets to have over 100 Premia stores by March 2025, up from 40 currently.

Q2 FY25EV portfolio expansion within six monthsActive

VIDA will launch new scooter models covering most price and customer segments within six months, including before end of calendar year.

Q2 FY25Premium store expansion to accelerateActive

Company plans to open 100 premium stores by end of FY2025, with further acceleration expected.

Q3 FY25Premium store count to cross 100 soonActive

The company plans to expand its premium store network from 60 to over 100 stores in the near term.

Q3 FY25Hero 2.0 stores at 700 in less than 700 daysActive

The company has opened 700 Hero 2.0 stores at a pace of more than one store per day, accelerating retail transformation.

Q4 FY25Two new affordable EV products in H1 FY26Active

Two new affordable EV products are planned for launch in the first half of FY26, likely in July.

Q1 FY26New 125cc motorcycle launches in Q2Active

Two new 125cc motorcycle launches planned in Q2 FY26 to disrupt the deluxe segment with best-in-class technology.

Q3 FY26EV capacity expansion in FY27Tracked

VIDA expects a market increase in capacity in FY27 to meet growing demand.

Ai Strategy

Q2 FY24EV portfolio expansion with new price points in FY25Tracked

Hero plans to introduce mid and more affordable EV price points in fiscal year 2025.

Q4 FY24EV portfolio expansion in H1 FY25 with PLI compliance by Q2Active

New EV products in mid and mass segments will be launched in H1, and PLI compliance is expected by Q2 FY25.

Q1 FY25New EV products to be PLI compliant from OctoberActive

The upcoming EV range expansion (mid and affordable segments) will be PLI compliant, launching from October 2024 onwards.

Revenue

Q3 FY24Double-digit industry revenue growth in FY25Tracked

Management expects the two-wheeler industry to grow at double-digit revenue in FY25, with Hero aiming to outperform.

Q4 FY24Double-digit revenue growth in FY25Active

Management is confident of achieving double-digit revenue growth in FY25, driven by volume, mix, and pricing.

Q3 FY25Double-digit revenue growth in FY26Tracked

Management expects double-digit revenue growth for the next fiscal year, driven by new launches, rural recovery, and tax relief.

Q1 FY26Global business to contribute 10% of revenue/volumesTracked

Target to achieve 10% of revenue and volumes from global business, with over 40% growth expected this year.

Q3 FY26Price hike of INR 300 per vehicle in JanuaryActive

Hero took a price increase of INR 300 per vehicle in January to mitigate commodity cost inflation.

Capex

Q3 FY24PAM business capacity to INR 10,000 CrTracked

Investment of INR 600 Cr over two years to expand parts, accessories, and merchandise capacity to over INR 10,000 Cr annual revenue.

Q4 FY24Capex guidance of INR 1,000-1,500 crore for FY25Tracked

Capital expenditure for FY25 is expected to be between INR 1,000-1,500 crore, including GPC2 expansion.

Q1 FY25CapEx guidance of INR 1,000-1,200 crore per annumTracked

Annual capital expenditure is expected to be in the range of INR 1,000-1,200 crore.

Q4 FY26CapEx of INR 1,500 crore in FY27Tracked

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.