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Hero MotoCorp Limited — Q3 FY25
Hero MotoCorp reported Q3 FY25 revenue of ₹10,211 crore (+5% YoY), EBITDA of ₹1,476 crore (+8% YoY), and PAT of ₹1,203 crore (+12% YoY).
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high
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Hero MotoCorp reported Q3 FY25 revenue of ₹10,211 crore (+5% YoY), EBITDA of ₹1,476 crore (+8% YoY), and PAT of ₹1,203 crore (+12% YoY). EBITDA margin improved 50 bps YoY to 14.5%, driven by mix improvement and cost savings, with ICE margins at 16%. The company gained market share in 95% of its portfolio, with retail share at 32.8% (up 520 bps QoQ). EBITDA per unit crossed ₹10,000, reflecting operating leverage. Management guided for double-digit revenue growth in FY26, supported by new launches (Xtreme 250R, VIDA V2, Xoom 160), rural demand recovery, and tax relief from the budget. Key risk: EV volumes remain low due to portfolio transition, and Hero FinCorp credit costs have risen to ~6%, though collections are improving.
हीरो मोटोकॉर्प ने तीसरी तिमाही में 10,211 करोड़ रुपये की कमाई की, जो पिछले साल से 5% ज्यादा है। कंपनी का मुनाफा 1,203 करोड़ रुपये रहा, जो 12% बढ़ा। कंपनी ने लागत बचत और बेहतर मिश्रण से 14.5% का मार्जिन हासिल किया। हर बाइक पर कमाई 10,000 रुपये से ज्यादा हुई। बाजार में हिस्सेदारी बढ़कर 32.8% हो गई। अगले साल कमाई दो अंकों में बढ़ने की उम्मीद है, क्योंकि नए मॉडल आ रहे हैं और गांवों में मांग बढ़ रही है। लेकिन इलेक्ट्रिक वाहनों की बिक्री अभी कम है और हीरो फिनकॉर्प का कर्ज वसूली खर्च बढ़ा है।
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EV market share remains low
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Market Share (Vahan)
32.8%
+520bps QoQ
Highest-ever retail market share in the quarter, driven by strong performance in 125cc and EV segments.
EBITDA per Unit
₹10,000+
Crossed threshold
EBITDA per unit crossed ₹10,000, driven by premiumization, mix, and pricing, enabling operating leverage.
Parts Revenue
₹1,555 crore
+9% YoY
Highest-ever quarterly revenue from parts, accessories, and merchandise, aided by seasonality and new lines.
EV Investment
₹137 crore
-50bps QoQ
Lower EV investment due to transition from V1 to V2; per-unit investment remains unchanged.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
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.
DROPPED
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.
DROPPED
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.
DROPPED
PLI benefits expected from FY2026
EV products will become PLI-compliant in FY2026, with benefits starting to accrue from that period.
DROPPED
Premium store expansion to accelerate
Company plans to open 100 premium stores by end of FY2025, with further acceleration expected.
NEW RISK
EV market share remains low
VIDA's national EV market share is ~5%, partly due to absence in the sub-₹1 lakh segment (60% of market) and limited geographic presence.
NEW RISK
Hero FinCorp credit cost increase
Hero FinCorp's credit cost rose ~150 bps to ~6% due to lower collection efficiency, impacting profitability.
NEW RISK
Transition from V1 to V2 disrupted volumes
EV dispatches fell sharply during the V1-to-V2 transition, though management expects a recovery in February-March.
NEW RISK
Structural shift away from motorcycles
Scooters and EVs are gaining share, potentially pressuring Hero's core motorcycle business; management downplays this risk.
RISK GONE
Rising delinquencies in Hero FinCorp
Delinquencies and collection slowdown in H1 impacted HFCL profitability; management acknowledged industry-wide credit cost increase.
RISK GONE
Demand bunching around festive season
Analyst flagged that strong festive retail may not sustain post-festival, as seen last year with sharp drop in Vahan registrations.
RISK GONE
Geopolitical and economic risks in export markets
Countries like Bangladesh, Turkey, and Nigeria face economic challenges that could slow export growth.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q4 FY24
Annual capital expenditure is expected to be in the range of INR 1,000-1,200 crore.
Mentioned in Q2 FY24, Q4 FY24
New EV products in mid and mass segments will be launched in H1, and PLI compliance is expected by Q2 FY25.
Mentioned in Q2 FY24, Q2 FY25
VIDA will launch new scooter models covering most price and customer segments within six months, including before end of calendar year.
Mentioned in Q1 FY25, Q2 FY24
Despite new launches, overall market share is still declining YoY; premium segment competition remains intense.
Mentioned in Q1 FY25, Q4 FY24
Management plans to ramp up Xtreme 125R production from 25,000 to 40,000 units per month in the next couple of months.
Fast read
Guidance and risk preview
Management expects double-digit revenue growth for the next fiscal year, driven by new launches, rural recovery, and tax relief.
VIDA's national EV market share is ~5%, partly due to absence in the sub-₹1 lakh segment (60% of market) and limited geographic presence.
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