Scooter volume growth
48%
+48% YoY
Scooter dispatches grew 48% year-on-year in Q4 FY26, driven by strong demand for Destiny and Zoom models.
HEROMOTOCO
Diversified
07 May 2026
Hero MotoCorp Limited — Q4 FY26
Hero MotoCorp delivered a strong Q4 FY26 with record revenue of ₹12,797 crore (+29% YoY) and EBITDA of ₹1,856 crore (+31% YoY), driven by robust volume growth across scooters (+48%), EVs (2.5x), and exports (+41%).
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Hero MotoCorp delivered a strong Q4 FY26 with record revenue of ₹12,797 crore (+29% YoY) and EBITDA of ₹1,856 crore (+31% YoY), driven by robust volume growth across scooters (+48%), EVs (2.5x), and exports (+41%). The ICE business EBITDA margin expanded 100bps to 17%, though overall margin was 14.5% after EV investments of ₹220 crore. Management guided for high single-digit industry growth in FY27 and expects to outgrow the market, supported by capacity expansions (scooter capacity doubling, EV capacity doubling by year-end) and new product launches. Key risks include commodity cost inflation (aluminium, steel, rubber) which is only partially offset by ~2% price hikes, and potential demand impact from West Asia tensions. The medium-term margin guidance of 14-16% remains, but near-term transitory margin pressure is expected.
Key Numbers
EV volume growth
2.5x
+150% YoY
EV scooter volumes expanded two and a half times over the previous year, with capacity doubling underway.
Export volume growth
41%
+41% YoY
Global business wholesale dispatches grew 41% year-on-year, reaching 4,02,000 units in FY26.
Dealer inventory
5 weeks
down YoY
Channel inventory reduced to ~5 weeks, down from higher levels last year, indicating healthy retail demand.
Management Guidance
Industry growth of high single-digit in FY27
Management expects the two-wheeler industry to grow at high single-digit volume in FY27, with scooters growing a couple of points more than motorcycles.
Management guidance growthCompany to outgrow industry in FY27
Hero MotoCorp plans to grow ahead of the industry in both motorcycles and scooters, driven by new launches and capacity expansions.
Management guidance growthMedium-term EBITDA margin guidance of 14-16%
Management reaffirmed commitment to 14-16% EBITDA margin in the medium term, despite near-term commodity headwinds.
Management guidance marginsCapex of ₹1,500 crore in FY27
The company has committed over ₹1,500 crore of capex in FY27 for capacity expansion in scooters, EVs, and a new global parts center.
Management guidance capexKey Risks
Commodity cost inflation
Rising prices of aluminium, steel, rubber, and plastics due to West Asia tensions are increasing input costs, with only ~2% price hikes taken so far.
high · management_commentaryNear-term margin pressure from commodity headwinds
Management acknowledged a transitory impact on margins in the short term, as commodity cost increases outpace price hikes and cost savings.
medium · analyst_questionEV business losses and investment phase
EV losses remain sizable (₹220 crore in Q4) as the business is still in a buildout phase with significant R&D and capacity investments.
medium · analyst_questionDemand risk from West Asia tensions
Potential fuel price hikes and economic uncertainty in export markets like Bangladesh and Sri Lanka could dampen demand.
medium · management_commentaryNotable Quotes
In scooters, we saw 48% growth year on year. In EV, our EV scooter volumes expanded two and a half times over the previous year and our global business wholesale or dispatches saw growth of 41% year-on-year.
We are committed to our medium-term margin guidance of 14 to 16%.
We are still in the phase of building out our EV portfolio and we still have many new launches planned in the year and hence significant R&D investments are happening there.
Frequently Asked Questions
What was Hero MotoCorp's revenue in Q4 FY26?
Hero MotoCorp reported revenue of ₹12,797 Cr in Q4 FY26, representing a +29% change compared to the same quarter last year.
What guidance did Hero MotoCorp management give for FY27?
Industry growth of high single-digit in FY27: Management expects the two-wheeler industry to grow at high single-digit volume in FY27, with scooters growing a couple of points more than motorcycles. Company to outgrow industry in FY27: Hero MotoCorp plans to grow ahead of the industry in both motorcycles and scooters, driven by new launches and capacity expansions. Medium-term EBITDA margin guidance of 14-16%: Management reaffirmed commitment to 14-16% EBITDA margin in the medium term, despite near-term commodity headwinds. Capex of ₹1,500 crore in FY27: The company has committed over ₹1,500 crore of capex in FY27 for capacity expansion in scooters, EVs, and a new global parts center.
What are the key risks for Hero MotoCorp in FY27?
Key risks include Commodity cost inflation — Rising prices of aluminium, steel, rubber, and plastics due to West Asia tensions are increasing input costs, with only ~2% price hikes taken so far.; Near-term margin pressure from commodity headwinds — Management acknowledged a transitory impact on margins in the short term, as commodity cost increases outpace price hikes and cost savings.; EV business losses and investment phase — EV losses remain sizable (₹220 crore in Q4) as the business is still in a buildout phase with significant R&D and capacity investments.; Demand risk from West Asia tensions — Potential fuel price hikes and economic uncertainty in export markets like Bangladesh and Sri Lanka could dampen demand..
Did Hero MotoCorp meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Hero MotoCorp Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.