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Hero MotoCorp Limited — Q4 FY26
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).
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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.
हीरो मोटोकॉर्प ने वित्त वर्ष 2026 की चौथी तिमाही में शानदार प्रदर्शन किया। कंपनी का कुल राजस्व 12,797 करोड़ रुपये रहा, जो पिछले साल से 29% ज्यादा है। कमाई (EBITDA) 1,856 करोड़ रुपये (+31%) और शुद्ध लाभ (PAT) 1,401 करोड़ रुपये (+30%) हुआ। यह वृद्धि स्कूटर (+48%), इलेक्ट्रिक वाहनों (2.5 गुना) और निर्यात (+41%) में बाजार हिस्सेदारी बढ़ने से हुई। पेट्रोल वाहनों का मुनाफा 17% हो गया, जबकि कुल मुनाफा (EV निवेश सहित) 14.5% रहा। कंपनी को अगले साल उद्योग में 7-9% वृद्धि की उम्मीद है और वह नए निवेश (1,500 करोड़ रुपये) व नए मॉडलों से बाजार से तेज बढ़ेगी। एल्युमीनियम, स्टील और मजदूरी की बढ़ती लागत अस्थायी है, जिसे कीमतें बढ़ाकर संभाला जाएगा। मुख्य जोखिम: अगर कच्चे माल की कीमतें बढ़ती रहीं तो मुनाफा कम हो सकता है।
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Commodity cost inflation
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Scooter volume growth
48%
+48% YoY
Scooter volumes grew 48% year-on-year, driven by strong demand for Destini and Xoom models.
EV scooter volume growth
2.5x
+150% YoY
EV scooter volumes expanded 2.5 times over the previous year, reflecting strong VIDA brand momentum.
Export volume growth
41%
+41% YoY
Global business wholesale grew 41% year-on-year, with strong traction in Latin America and Africa.
Dealer inventory
5 weeks
down from prior year
Channel stock reduced to 5 weeks, entering FY27 with healthier inventory levels.
What Changed vs Last Quarter
NEW
Company to outgrow industry in FY27
Hero MotoCorp expects to grow ahead of the industry in both motorcycles and scooters, driven by new launches and capacity expansion.
NEW
CapEx of INR 1,500 crore in FY27
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.
NEW
Medium-term EBITDA margin guidance of 14%-16%
Management reaffirmed its medium-term margin guidance of 14%-16%, despite near-term commodity headwinds.
UPDATED
Industry growth of high single-digit in FY27
Management expects the two-wheeler industry to grow at a high single-digit rate in FY27, with scooters growing slightly faster than motorcycles.
DROPPED
Price hike of INR 300 per vehicle in January
Hero took a price increase of INR 300 per vehicle in January to mitigate commodity cost inflation.
DROPPED
EV capacity expansion in FY27
VIDA expects a market increase in capacity in FY27 to meet growing demand.
NEW RISK
EV business losses persist
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.
NEW RISK
Demand slowdown from macro headwinds
Potential fuel price hikes and inflation from geopolitical tensions could dampen two-wheeler demand, though no softening has been observed yet.
NEW RISK
EPR regulation uncertainty
The draft EPR notification for end-of-life vehicles is still evolving; management could not quantify the potential financial impact.
RISK GONE
Potential demand dampener from price hikes
Analyst raised concern that price increases to offset commodity costs could dampen demand, especially after GST-driven price reductions.
RISK GONE
Supply chain constraints for high-growth models
Management acknowledged supply bottlenecks for Xtreme 125R due to strong demand and common platform with exports, which could limit near-term sales.
🤫 Topics management stopped discussing
Mentioned in Q2 FY26, Q3 FY25, Q4 FY25
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.
Fast read
Guidance and risk preview
Management expects the two-wheeler industry to grow at a high single-digit rate in FY27, with scooters growing slightly faster than motorcycles.
Rising prices of aluminum, steel, rubber, and plastics due to West Asia tensions are pressuring margins; management expects a transitory impact but...
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