Investors are keen to understand if the festive season buoyancy, aided by recent GST cuts, will sustain. The above trend comes at a time with leading two-wheeler stocks that have raced ahead on Dalal Street. For instance, Hero MotoCorp was down 0.4% to Rs 6,270 in Tuesday trade, and it had reached its 52-week high of Rs 6,335 earlier in the day.  

Bajaj Auto was flat at Rs 9,090.6 in Tuesday trade, and not too far from its 52-week high of Rs 9,471 that was reached on 8 September 2025. And TVS Motor Company was broadly flat at Rs 3,671.9 in Tuesday trade, hovering not too far from its 52-week high of Rs 3,704 that was reached on 23 October, 2025.  

To understand the current trends in the two-wheeler industry, we looked at monthly sales data of these leading two-wheeler players in October, 2025 and November, 2025.

Sales Report: Hero leads volume, TVS leads growth

Hero MotoCorp had a near 31.5% y-o-y jump in its November 2025 sales to 6.04 lakh units. The company’s performance was stronger than its peers. The New-Delhi based company has highlighted strong demand for its recently launched models like the Xtreme 125R, GlamourX 125, Destini 110 and Xoom 160. It has also pointed out to a revival in rural spending in November 2025.

Hero MotoCorp’s vehicle sales had declined nearly 6% y-o-y to 6.35 lakh units in October, 2025, as it tried to stabilise its operations post the GST cut and the operational difficulties that its dealer network had faced. Its combined vehicles sales in October and November 2025 grew 8.9% to 12.4 lakh units on a y-o-y basis.

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Smaller rival, Chennai-based TVS Motor Company grew its November 2025 sales by 29.5% y-o-y to 5.19 lakh units. This player benefited from its exports that jumped  58.2% y-o-y to 1.48 lakh units in November 2025 along with electric vehicle sales, like TVS Orbiter, that grew 45.7% y-o-y to 38,307 units in the month. TVS Motor Company had grown its October 2025 by 11.2% y-o-y to 5.43 lakh units, and for the two months they grew 19.4% y-o-y to 10.6 lakh units.

Pune-based Bajaj Auto benefited from a 13.8% y-o-y jump in its export sales to 2.05 lakh units in November 2025, and it helped total sales in the month to grow 7.6% y-o-y to 4.53 lakh.

In October 2025, there was a similar trend, exports grew 16.6% y-o-y, and it helped total sales in the month grow 8% y-o-y to 5.18 lakh units. Total vehicle sales for this player in October and November 2025 grew 7.8% y-o-y to 9.7 lakh units.

Financial health: Margins on the rise

Hero MotorCorp had declared its September 2025 quarter results much later than its peers on November 13.  Its two-wheelers sold grew 11.2% y-o-y to 16.9 lakh units in the September 2025 quarter. The company has highlighted strong demand for its Vida electric two-wheeler range in the quarter. And in the 100 to 125 cc range better demand for its models like Passion, Splendor and Glamor X in Q2FY26.

As a result, its standalone revenue from operations grew 15.9% y-o-y to Rs 12,126.4 crore in the September 2025 quarter, and its core operating profit margin grew 60 basis points y-o-y to 15.1 % in the quarter under review. Its net profit grew 15.7% y-o-y to Rs 1,392.8 crore in the September 2025 quarter.

Earlier, Bajaj Auto’s vehicle sales grew 5.9% y-o-y to 1.29 million units in September 2025 quarter. The Pune-based company benefited from its export sales at 553,327 units in the September 2025 quarter, a growth of 24.4% y-o-y. 

The company’s standalone revenue from operations grew 13.7% y-o-y to Rs 14,922 crore. Strong exports helped its core operating profit margin improve nearly 30 basis points y-o-y to 20.4% in the second quarter of FY26. Its standalone net profit also rose 23.6% y-o-y to Rs 2,479.7 crore in the September 2025 quarter, even though there was a high tax base in the previous year.

And TVS Motor Company reported a 22.7% y-o-y growth to 1,506,950 units in the September 2025 quarter. The company recorded its highest ever sales of vehicles in a quarter in terms of units sold. Strong demand for its motorcycles like TVS Apache and HLX in overseas markets helped two-wheeler exports rise 31% y-o-y to 3.63 lakh units in the second quarter of FY26.

The Chennai-based company’s standalone revenue from operations grew 29 % y-o-y to Rs 11,905.4 crore, and its core operating profit margin rose 130 basis points y-o-y to 13% in the quarter in the review.

Strong demand for its vehicles helped TVS Motor Company’s standalone net profit rise 36.9% y-o-y to Rs 906.1 crore in the second quarter of FY26.

Efficiency riders – Return on Capital Employed (ROCE)

TVS Motor Company has a ROCE on a standalone basis of 34.7% for the current financial year, according to Screener.in, while it is 37.6 % for Bajaj Auto.

Hero MotoCorp has a ROCE of 31.5% on a standalone base, according to Screener.in.

Future pipeline: The EV battle heats up

To leverage the pick-up in demand over the few quarters, various new models are expected to be launched.

TVS Motor Company unveiled 6 new models at an exhibition in Milan, Italy. These include TVS Tangent RR Concept, a super sport bike with a monocoque sub-frame, and TVS M1-S, its first electric maxi scooter.

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Meanwhile, Bajaj Auto’s new launches planned include the Avenger EX  450, a new 125cc motorcycle, and an electric Pulsar.

Hero MotoCorp has several launches planned for 2026, and it includes the Hero Xpulse 160 and 400, and new models in its electric Vida brand.

Valuations – investors on Dalal Street

Bajaj Auto trades at a standalone P/E of 29.1, according to Screener.in, while it is more than 50 times for TVS Motor Company.  Hero MotoCorp trades at a standalone P/E of 26.1 times.

Disclaimer:

Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Amriteshwar Mathur is a financial journalist with over 20 years of experience.

Disclosure: The writer and his family do not hold the stocks discussed in this article. 

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