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Hero MotoCorp Limited — Q4 FY25
Hero MotoCorp reported Q4 FY25 revenue of INR 9,939 crore, EBITDA of INR 1,416 crore, and PAT of INR 1,081 crore.
bullish
medium
✓ Verified against BSE filing
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Hero MotoCorp reported Q4 FY25 revenue of INR 9,939 crore, EBITDA of INR 1,416 crore, and PAT of INR 1,081 crore. The ICE EBITDA margin stood at 16.1%, while overall margin including EV investments was 14.2%. For FY25, revenue reached a record INR 40,756 crore (+9% YoY), PAT at INR 4,610 crore (+16% YoY), and ICE EBITDA margin improved 90 bps to 16.2%. Growth was driven by market share gains in entry (600 bps) and 125cc segments (250 bps), strong export growth (43% YoY), and EV market share reaching 7%. Management expects industry growth of 6-7% in FY26 and aims to outperform. Risks include potential quality perception issues and EV profitability timeline.
हीरो मोटोकॉर्प ने चौथी तिमाही में 9,939 करोड़ रुपये की कमाई, 1,416 करोड़ रुपये का परिचालन लाभ और 1,081 करोड़ रुपये का शुद्ध लाभ कमाया। पेट्रोल बाइक से मुनाफा 16.1% रहा, जबकि इलेक्ट्रिक वाहनों में निवेश के बाद कुल मुनाफा 14.2% रहा। पूरे साल में कमाई 40,756 करोड़ रुपये (9% ज्यादा) और शुद्ध लाभ 4,610 करोड़ रुपये (16% ज्यादा) रहा। कंपनी ने सस्ती बाइक और 125cc सेगमेंट में बाजार हिस्सेदारी बढ़ाई, निर्यात 43% बढ़ा, और इलेक्ट्रिक वाहनों में हिस्सेदारी 7% पहुंची। अगले साल उद्योग 6-7% बढ़ने का अनुमान है, और कंपनी इससे बेहतर करना चाहती है। चुनौतियों में गुणवत्ता को लेकर ग्राहकों की धारणा और इलेक्ट्रिक वाहनों से मुनाफा होने में समय लगना शामिल है।
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Quality perception issues
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Entry segment market share gain
600 bps
+600 bps YoY
Gained 600 basis points market share in the entry category in Q4 FY25.
125cc segment market share gain
250 bps
+250 bps YoY
Gained 250 basis points market share in the 125cc segment for FY25.
Export growth
43%
+43% YoY
Global business grew 43% year-on-year, almost 2x the industry growth.
EV market share
7%
+7% YoY
EV market share exited March at 7%, up from previous levels.
What Changed vs Last Quarter
NEW
EBITDA margin guidance of 14-16%
Management reiterated guidance to maintain EBITDA margins between 14% and 16%.
NEW
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.
NEW
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.
UPDATED
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.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Quality perception issues
An analyst raised concerns about quality degradation post-BS6, which management denied but acknowledged the need for continuous improvement.
NEW RISK
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.
NEW RISK
Supply chain disruption risk
A planned production halt in April impacted dispatches, though management stated retail was unaffected and production normalized in May.
NEW RISK
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.
RISK GONE
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.
RISK GONE
Hero FinCorp credit cost increase
Hero FinCorp's credit cost rose ~150 bps to ~6% due to lower collection efficiency, impacting profitability.
RISK GONE
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.
RISK GONE
Structural shift away from motorcycles
Scooters and EVs are gaining share, potentially pressuring Hero's core motorcycle business; management downplays this risk.
🤫 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 the two-wheeler industry to grow in the mid to high single digits (6-7%) in FY2026.
An analyst raised concerns about quality degradation post-BS6, which management denied but acknowledged the need for continuous improvement.
View Risks →