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Hero MotoCorp Limited — Q1 FY26
Hero MotoCorp reported Q1 FY26 revenue of INR 9,579 crore and EBITDA of INR 1,382 crore, with overall EBITDA margin at 14.4% (ICE margin improved to 16.8%).
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medium
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Hero MotoCorp reported Q1 FY26 revenue of INR 9,579 crore and EBITDA of INR 1,382 crore, with overall EBITDA margin at 14.4% (ICE margin improved to 16.8%). PAT stood at INR 1,126 crore (consolidated INR 1,706 crore including one-time gain). Wahan market share recovered to 30.9% (up 1% QoQ), driven by entry segment gains (800bps YoY share increase in HF Deluxe). EV business achieved record quarterly share of 7% (over 10% in July) with VIDA VX2 launch and Battery-as-a-Service model. Management expects industry growth of 6-7% for FY26, with festive season demand recovery. Risks include rare earth supply constraints (covered for Q2) and potential ABS regulation cost impact.
हीरो मोटोकॉर्प ने पहली तिमाही (अप्रैल-जून 2025) में 9,579 करोड़ रुपये की कमाई और 1,382 करोड़ रुपये का परिचालन लाभ (EBITDA) दर्ज किया। कंपनी का मुनाफा (PAT) 1,126 करोड़ रुपये रहा, जबकि एक बार के फायदे के बाद यह 1,706 करोड़ रुपये था। बाजार में हिस्सेदारी 30.9% हो गई, जो पिछली तिमाही से 1% ज्यादा है। खासकर HF डीलक्स मॉडल की बिक्री बढ़ने से यह हुआ। इलेक्ट्रिक वाहन (EV) कारोबार ने रिकॉर्ड 7% हिस्सेदारी हासिल की, जुलाई में यह 10% से ऊपर पहुंच गया। VIDA VX2 लॉन्च और बैटरी-ए-सर्विस मॉडल से यह संभव हुआ। कंपनी को इस साल 6-7% उद्योग वृद्धि की उम्मीद है। जोखिमों में दुर्लभ धातुओं की कमी (दूसरी तिमाही के लिए कवर) और ABS नियमों का खर्च शामिल है।
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Rare earth supply constraints
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Wahan Market Share
30.9%
+1% QoQ
Sequential increase of 1% in Q1 FY26, driven by entry segment and EV gains.
EV Quarterly Market Share
7%
+100% YoY
Highest ever quarterly share, more than doubled YoY; further improved to 10% in July.
HF Deluxe Entry Segment Market Share
11-quarter high
+800bps YoY
Gained 800 basis points market share YoY in entry 100cc deluxe segment.
Global Business Dispatch Growth
27%
+27% YoY
Dispatch growth of 27% YoY in Q1 FY26, driven by focus markets and new launches.
What Changed vs Last Quarter
NEW
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
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.
UPDATED
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.
UPDATED
EBITDA margin guidance of 14-16%
CFO reiterated margin guidance of 14-16%, with short-term operating at lower band due to investments.
DROPPED
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.
DROPPED
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.
NEW RISK
Rare earth supply constraints
Industry-wide rare earth shortage affecting magnets for EV motors and sensors; Hero covered for Q2 but uncertainty beyond.
NEW RISK
ABS regulation cost impact
Draft notification mandating ABS for vehicles >50cc from June 2026 could increase costs significantly; industry seeking timeline extension.
NEW RISK
Entry segment demand weakness
Entry-level motorcycle segment under prolonged stress due to affordability and aspiration shifts; recovery uncertain.
NEW RISK
Hero Fincorp asset quality pressure
HFCL profitability impacted by high credit cost and NPAs; management expects improvement with falling rates but no timeline given.
RISK GONE
Quality perception issues
An analyst raised concerns about quality degradation post-BS6, which management denied but acknowledged the need for continuous improvement.
RISK GONE
EV profitability timeline
EV losses remain significant (EBITDA at -95% in FY25), and breakeven is expected only at 25,000-30,000 monthly volumes, which is a couple of years away.
RISK GONE
Supply chain disruption risk
A planned production halt in April impacted dispatches, though management stated retail was unaffected and production normalized in May.
RISK GONE
Leadership transition uncertainty
The CEO position is still interim, and management did not provide a timeline for a permanent appointment, which may cause strategic uncertainty.
🤫 Topics management stopped discussing
Mentioned in Q3 FY25, Q4 FY25
Management expects the two-wheeler industry to grow in the mid to high single digits (6-7%) in FY2026.
Fast read
Guidance and risk preview
Management expects full-year two-wheeler industry growth of 6-7%, with festive season demand recovery offsetting Q1 softness.
Industry-wide rare earth shortage affecting magnets for EV motors and sensors; Hero covered for Q2 but uncertainty beyond.
View Risks →