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View Promises →Hero MotoCorp Limited — Q3 FY26
Hero MotoCorp reported a strong Q3 FY26 with record revenue of ₹12,328 crore (+21% YoY) and EBITDA of ₹1,810 crore (+23% YoY).
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Hero MotoCorp reported a strong Q3 FY26 with record revenue of ₹12,328 crore (+21% YoY) and EBITDA of ₹1,810 crore (+23% YoY). Normalized PAT grew 20% to ₹1,489 crore, excluding a one-time labor code provision of ₹119 crore. EBITDA margin expanded 20 bps to 14.7%, supported by pricing, cost savings, and operating leverage, partially offset by commodity headwinds (~40-50 bps impact). The company gained market share across segments: 91% share in 100cc (highest since FY18), scooter share near 7%, and EV share at 10.8%. Global business volumes surged 41% YoY with market share up 100 bps to 7.5%. Management expects double-digit industry growth in Q4 and high single-digit growth in FY27, with Hero growing ahead of the industry. Key risks include rising commodity prices and potential demand moderation from price increases.
हीरो मोटोकॉर्प ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी का रिकॉर्ड राजस्व ₹12,328 करोड़ रहा, जो पिछले साल से 21% ज्यादा है। मुनाफा (EBITDA) ₹1,810 करोड़ (+23%) हुआ। एक बार के खर्चे को छोड़कर शुद्ध मुनाफा 20% बढ़कर ₹1,489 करोड़ हो गया। कंपनी ने कीमतें बढ़ाकर, लागत बचाकर और बिक्री बढ़ाकर मुनाफा बनाए रखा, हालांकि कच्चे माल की महंगाई का थोड़ा असर पड़ा। बाजार में हिस्सेदारी बढ़ी: 100cc सेगमेंट में 91% (पिछले 5 साल में सबसे ज्यादा), स्कूटर में 7% और इलेक्ट्रिक वाहनों में 10.8%। विदेशों में बिक्री 41% उछली। कंपनी को उम्मीद है कि अगली तिमाही में उद्योग दो अंकों में बढ़ेगा और अगले साल भी अच्छी ग्रोथ रहेगी। लेकिन कच्चे माल की बढ़ती कीमतें और कीमत बढ़ने से मांग कम होने का जोखिम है।
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Commodity cost inflation
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Read Transcript →Quarter Snapshot
Market share in 100cc segment
91%
+4pp YoY
Highest level since FY18, driven by Splendor and HF Deluxe Pro.
Global business volume growth
41%
+41% YoY
Driven by strong performance in Colombia (200% volume growth) and new market entries.
EV market share (Vida)
10.8%
+6pp YoY
Expanded share led by VX2 launch; EV investment reduced to ₹208 crore from ₹255 crore QoQ.
Premium stores count
106
+106 stores YoY
Covers >50% of premium industry footprint; scaled up from zero base.
What Changed vs Last Quarter
NEW
Hero to grow ahead of industry
With new product launches and brand investments, Hero expects to outpace industry growth.
NEW
FY27 industry growth in high single digits
Industry growth likely to moderate to high single digits in FY27 due to high base in second half.
NEW
Price increase of ₹300 per vehicle in January
Hero took a price hike of ₹300 per vehicle from January 1 to mitigate commodity cost inflation.
UPDATED
Industry growth of double-digit in Q4 FY26
Management expects the two-wheeler industry to grow by double digits in the current quarter (Q4 FY26).
DROPPED
EBITDA margin guidance 14-16%
Management reiterated its EBITDA margin guidance of 14-16% for the full year, despite continued investments.
DROPPED
Continued investment in brand, products, and EV
Hero will continue investing in premium, scooters, EV portfolio, brand building, and Hero 2.0 store upgrades.
NEW RISK
Potential demand dampener from price hikes
Analyst raised concern that price increases to offset commodity costs could dampen demand, especially after GST-led price cuts.
NEW RISK
Supply chain constraints for high-demand models
Extreme 125R and export models face supply bottlenecks due to rapid growth; management acknowledged capacity augmentation is underway.
NEW RISK
EV business losses
EV investment of ₹208 crore in Q3, though reduced from ₹255 crore QoQ, remains a drag on overall margins.
RISK GONE
ABS implementation cost impact
The draft notification for mandatory ABS could increase costs; management is in talks with the government but no final timeline.
RISK GONE
Rural demand recovery pace
Rural markets were slow initially due to rains and early festive timing, though recovery is visible post-festive.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q2 FY26
The draft notification for mandatory ABS could increase costs; management is in talks with the government but no final timeline.
Mentioned in Q1 FY26, Q2 FY26
Management reiterated its EBITDA margin guidance of 14-16% for the full year, despite continued investments.
Fast read
Guidance and risk preview
Management expects the two-wheeler industry to grow by double digits in the current quarter (Q4 FY26).
Rising aluminium and precious metal prices, along with forex impact, added 40-50 bps cost pressure in Q3 and continue in Q4.
View Risks →