Two-wheeler stocks have been in the limelight after the GST cuts from 28% to 18% (for bikes upto 350 cc) coupled with strong festive season sales. The RBI’s efforts to lower rates of interest on loans including auto loans has also helped two-wheeler sales.
Market Sentiment: Chasing 52-Week Highs
Investors have shown strong interest for two-wheeler stocks with the leading stocks trading close to their 52-week highs.
For instance, Hero MotoCorp declared its results after the close of Thursday trading, and on Friday, the stock was flat at Rs 5,755, and it had a 52-week high of Rs 6,390 on 5 December, 2025.
Similarly, Bajaj Auto, fell 1.3% in Friday trade to Rs 9,518 and not too far from its 52-week high of Rs 9,900 that was reached on 3 February, 2026. TVS Motor Company gained 1.3% to Rs 3,762 in Friday trade, and hovering close to its 52-week high of Rs 3,909 that was reached on 5 January 2026.
Let’s dig in and see which two-wheeler player raced ahead in the festive December 2025 quarter….
The Revenue Race: Realisations vs. Volume
Here’s the key data pertaining to the recently ended quarter…
Performance in the December 2025 quarter (YoY Growth)
Company | Vehicle sales growth (%) | Sales growth (%) | Net Profit growth (%) | Standalone ROE (%) |
| TVS Motor Company | 27.50% | 37.10% | 52% | 30.6% |
| Bajaj Auto | 9.50% | 18.90% | 18.70% | 28.5% |
| Hero MotoCorp | 15.90% | 20.70% | 12.10% | 23.8% |
The Revenue Leaderboard: TVS Motor’s Volume Surge
Chennai-based TVS Motor Company reported a staggering 27.5% y-o-y jump in its vehicle sales to 15.44 lakh units in the December 2025 quarter.
The company has highlighted its sales of two-wheelers for models like Apache series motorcycles, Raider 125, and HLX series in overseas markets jumped 35% to 3.66 lakh units in Q3FY26.
EV Adoption: iQube and VIDA Gain Traction
In addition, EV sales including iQube Smart Electric Scooter jumped 40% y-o-y to 1.06 lakh units in the quarter under review with TVS becoming one of the largest players in the EV two-wheeler segment.
As a result, its standalone revenue from operations grew at a very healthy 37.1% y-o-y to Rs 12,476 crore in the December 2025 quarter, while its realisations grew 7.6% y-o-y to Rs 80,780 per vehicle in the quarter.
Meanwhile, late on Thursday evening, New Delhi-based Hero Motocorp reported vehicle sales grew 15.9% to 16.97 lakh units in the December 2025 quarter. The company highlighted strong demand for new models launched recently in different segments – Xtreme 125R, GlamourX 125, Destini 110, Xoom 160 and Hero Xoom 125 scooter, amongst others.
The company has highlighted it had gained market share in 100cc – 125cc segment led by Splendor, Glamour, Xtreme and HF Delux in motorcycles, and Xoom, Destini, and Pleasure in the scooter segment.
Also, its electric range of VIDA electric scooters reported strong demand from younger buyers.
Strategic Pivot: Hero MotoCorp’s Rs 12,328 Crore Performance
As a result, its standalone revenue from operations grew 20.7% y-o-y to Rs 12,328 crore in the December 2025 quarter, while realisations grew 4.2% y-o-y to Rs 72,645 per vehicle.
Earlier, Bajaj Auto reported a 9.5% y-o-y growth in vehicle sales to 13.41 lakh units in the December 2025 quarter, and that was driven by its exports sales that grew 18.3% -o-y to 6.09 lakh units in the quarter under review. The company has highlighted strong demand for its product portfolio including two-wheelers in Latin America, Africa and Asia.
In addition, there is strong demand in the domestic market for its Pulsar range coupled with its electric vehicle range that includes Bajaj RE E-TEC 9.0.
Realisation Gains: Bajaj Auto Crosses Rs 15,220 Crore
As a result, its standalone revenue from operations grew 18.9% y-o-y to Rs 15,220 crore in the December 2025 quarter, and its realisations grew 8.7% y-o-y to Rs 1.13 lakh per vehicle.
Margin Management Amid Rising Commodity Pressures
Raw material costs like steel and copper have increased y-o-y and investors are keen to understand the impact of two-wheeler companies, in terms of operating margins and net profit.
TVS Motor Company faced a one-time hit of Rs 41.4 crore related to the new labour code. A very strong operational performance of buoyant vehicle sales and higher realisations helped the company’s operating profit margin rise nearly 120 basis points y-o-y to 13.1% in Q3FY26.
Its standalone net profit also rose 52% y-o-y to Rs 940.4 crore in the December 2025 quarter. The company’s performance in the auto business is reflected in its standalone results.
A similar trend was also witnessed with the other two leading two-wheeler companies.
Hero MotoCorp highlighted a one-time hit of Rs 119 crore related to the new labour code. However, strong price realisations helped its core operating profit grow 20 basis points y-o-y to 14.7% in Q3FY26.
Standalone net profit of the company grew 12.1% y-o-y to Rs 1,348.6 crore in the December 2025 quarter. The core auto operations of the New Delhi-based company are reflected in the standalone quarterly results.
The Pune-based Bajaj Auto had a one-time hit of Rs 61.3 crore in Q3FY26.
Strong realisations helped its core operating profit margin rise 70 basis points y-o-y to 20.7% in the December 2025 quarter.
Its standalone net profit rose 18.7% y-o-y to Rs 2,502.8 crore in Q3FY26.S
Launches planned in 2026
Bajaj Auto is planning to launch eight new bikes over the next few months and it will include updates / refreshed models with the main focus on its Pulsar range.
Meanwhile, key launches from TVS Motor Company include the RTS X electric bike, Raider 125 Flex-Fuel and Apache RTX 300.
And Hero MotoCorp’s upcoming launches includes Karizma XMR 250 and Scrambler 440.
Efficiency kings – Return on Equity (ROE)
Hero Motocorp had a standalone ROE of 23.8%, according to Screener.in, while for TVS Motor Corp it was 30.6%.
Bajaj Auto has a standalone ROE of 28.5%.
Efficiency Metrics: Dissecting ROE and Valuation Gaps
| Company | Standalone P/E (x) |
| TVS Motor Company | 50.9 |
| Bajaj Auto | 29 |
| Hero MotoCorp | 22.8 |
Hero MotoCorp trades at a standalone P/E of 22.8 times, according to Screener.in.
Bajaj Auto trades at a standalone P/E of 29 times and TVS Motor Company trades at 50.9 times.
The premium valuation for TVS Motor reflects the higher confidence in it to continue delivering industry beating performance.
Headwinds: The Looming Shadow of Input Costs
Two-wheeler companies have several launches planned for the current financial year. However, a cause for concern remains the rising prices of key metal inputs, steel and copper, amongst others.
Investors will be closely monitoring the strategy of two-wheeler companies, going forward, to deal with the above problem and price hikes, if any.
Also, there is no clarity whether the momentum in sales witnessed in December 2025 quarter for two-wheeler companies will continue with the same strength over the next few quarters.
Disclaimer:
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
Disclaimer: The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.