Hero MotoCorp on Thursday reported a firm second-quarter performance, with profit, revenue and operating metrics all registering healthy gains as festival-season demand and GST-driven efficiencies helped lift volumes across key categories. The company’s net profit rose 15.7% year-on-year to Rs 1,393 crore, compared with Rs 1,204 crore a year earlier, marginally topping Bloomberg’s projection of Rs 1,381 crore.
Revenue from operations increased 16% to Rs 12,126 crore, up from Rs 10,463 crore in the corresponding quarter last year and higher than the estimated Rs 11,891 crore. Ebitda rose 20% to Rs 1,824 crore, while operating margins inched up to 15% compared to 14.5% in the same period last year, reflecting better product mix, cost controls and the early benefits of scale in premium offerings.
The quarter’s performance was led by broad-based demand recovery, aided by the simplified GST framework that helped to stabilise sentiment and streamline operations. “The change in the GST regime has fundamentally simplified the indirect tax structure and demonstrably improved consumer sentiment. In Q2FY26, the auto industry returned to broad-based growth, further supported by positive festive sentiment,” Vivek Anand, chief financial officer, Hero MotoCorp, said. The company expects the momentum to continue on the back of supportive macroeconomic trends and a stronger model lineup.
Hero MotoCorp sold 1.69 million motorcycles and scooters during the quarter, compared with 1.52 million units a year earlier, signalling sustained recovery across entry, deluxe and scooter segments. The festive season that began in later August added further tailwinds with ICE vehicle registrations rising 16.2%, outpacing the industry’s 14.7% growth and expanding market share by 40 basis points.
VIDA, the company’s electric mobility offering, continued to scale up, securing an 11.7% share of the EV market. Overseas markets also contributed meaningfully, with global dispatches jumping 77% year-on-year on the back of strong demand from Bangladesh, Nepal, Sri Lanka and Colombia. The company also entered Europe and the UK with Euro5+ compliant models during the quarter.
Hero MotoCorp’s board approved an investment of up to Rs 170 crore for its global parts centre 2.0 at Tirupati, Andhra Pradesh, with operations expected to begin in FY27–28.