Hero MotoCorp Ltd
Hero MotoCorp Ltd
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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37 extracted metrics + investor summaries across FY11–FY26.
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Technical Indicators
Key Insights
Strengths
4- Company is almost debt free.
- Stock is providing a good dividend yield of 3.22%.
- Company has been maintaining a healthy dividend payout of 71.5%
- Debtor days have improved from 24.5 to 18.0 days.
Weaknesses
1- The company has delivered a poor sales growth of 8.90% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 5d agoHero MotoCorp is India's largest two-wheeler maker by volume, reporting FY26 consolidated revenue of ₹47,411 crore (+16% YoY) and PAT of ₹5,776 crore (+32% YoY) with a near debt-free balance sheet. The stock trades at a PE of 21.3x with a 3.14% dividend yield, while facing gross margin compression (Q1 FY27 gross margin contracted 475 bps YoY to 28.5%) and intensifying EV competition where VIDA ranks fourth by volume.
- FY26 consolidated PAT grew 32% YoY to ₹5,776 crore, demonstrating strong earnings momentum after a 28% compounded profit CAGR over 3 years
- Almost debt-free balance sheet with operating cash flow of ₹9,395 crore in FY26, up 80% YoY, providing significant financial flexibility
- FY26 volume growth of 10% to 64.69 lakh units with Q4 FY26 showing 24% volume growth, outperforming the sector's high-single-digit growth
- Dividend yield of 3.14% backed by a total FY26 payout of ₹185 per share (9,250%) and a consistent 71.5% payout ratio
- VIDA EV dispatches grew 154% in FY26 with June 2026 registrations at 21,812 units (185% YoY growth), and electric motorcycle platform planned for 2027
- ROE improved to 28% in the last year from 21% five-year average, indicating improving capital efficiency
- Q1 FY27 standalone revenue surged 35.7% YoY to ₹12,999 crore with price realisation per unit growing 10.6% YoY to ₹77,500, reflecting premiumisation success
- Debtor days improved from 24.5 to 18.0 days, signalling better working capital management
- Q1 FY27 gross margin contracted 475 bps YoY and 297 bps QoQ to 28.5%, with EBITDA margin declining to 13.3% from 14.4% due to commodity inflation
- VIDA is fourth in EV two-wheeler sales (1,02,097 units in H1 CY26) behind TVS (2,41,087), Bajaj (2,03,692), and Ather (1,63,681), with VAHAN market share down ~150 bps YoY
- Compounded sales CAGR of only 9% over 5 years and 5% over 10 years indicates historically sluggish top-line growth
- PE of 21.3x and PB of 5.4x with a 10-year stock CAGR of just 6% suggests limited long-term capital appreciation relative to valuation
- Consolidated Q1 FY27 profit fell 17% YoY to ₹1,412 crore due to high base effect from prior year one-time gains plus ₹119 crore exceptional expense for New Labour Code
- Heavy dependence on the economy/commuter 100-125cc segment exposes the company to rural demand cyclicality and intensifying competition from Bajaj and TVS in premium segments
- EV business remains loss-making with profitability targeted only by 2027, while requiring continued investment in charging infrastructure (3,600+ points) and product development
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 17h ago- Consolidated PAT falls 17% YoY Aug 7
While standalone PAT rose 29%, consolidated PAT fell 17% YoY to ₹1,418 crore in Q1FY26, indicating drag from subsidiaries/associates.
- Q2 FY27 input cost pressures Aug 10
Management flagged Q2 FY27 input cost headwinds, planning to offset through product mix improvements and cost-saving initiatives.
- Munjal remuneration faces dissent Aug 6
Dr. Pawan Munjal's remuneration resolution faced notable dissent from institutional investors at the 43rd AGM.
- Global exports dip slightly Aug 1
Despite new market entries, global exports dipped slightly in July 2026 even as domestic dispatches grew 19% YoY.
- Q1FY27 revenue surges 36% Aug 7
Hero MotoCorp reported Q1FY27 standalone revenue of ₹12,999 crore (up 36% YoY) with standalone PAT of ₹1,454 crore (up 29%), driven by 23% volume rise and strong premium segment performance.
- Margin target raised to 16-17% Aug 7
Management revised medium-term EBITDA margin guidance upward from 14-16% to 16-17%, signaling confidence in sustained operational improvement.
- July dispatches jump 19% YoY Aug 1
Hero MotoCorp dispatched 533,416 units in July 2026, a 19% YoY increase reflecting strong domestic demand momentum.
- EV capacity tripling in FY27 Aug 10
Hero plans to triple EV capacity from 15,000 to 45,000 units/month within FY27, with PLI accruals covering 100% of its EV portfolio by December 2026.
- VIDA launches in Nepal Jul 26
Hero MotoCorp debuted its VIDA electric brand in Nepal via CG Motors partnership, launching VX2 EVOOTER and DIRT.E K3 models to expand international EV presence.
- ₹185 per share dividend approved Aug 6
Shareholders approved a ₹185 per share dividend at the 43rd AGM with near-unanimous support for financials.
- New Chief Strategy Officer appointed Aug 17
Srihari Mulgund appointed CSO effective August 17, 2026, bringing 24 years of global automotive strategy experience with focus on EVs and mobility ecosystems.
- Premium segment CBO appointed Aug 3
Anuj Dua appointed Chief Business Officer for premium segment, leveraging Royal Enfield and Bajaj Auto experience to grow the Hero Premia network and Harley-Davidson X440 portfolio.
- Electric motorcycles planned next year Aug 7
Hero MotoCorp announced plans to introduce electric motorcycles beginning next year, expanding beyond electric scooters into the motorcycle EV segment.
- Investor conference on Aug 18 Aug 12
Hero MotoCorp scheduled to present at Motilal Oswal 22nd Annual Global Investor Conference in Mumbai on August 18, 2026.
- Q1FY27 earnings call held Aug 7 Aug 7
CEO Harshavardhan Chitale and CFO Vivek Anand discussed Q1FY27 results; audio recording made available on company website.
TL;DR: Hero MotoCorp is executing well on volume growth (23% rise, 19% July dispatches) and profitability (margin target raised to 16-17%), while aggressively scaling its EV capacity 3x within FY27. Key risks include consolidated PAT weakness from subsidiaries, near-term input cost pressures in Q2 FY27, and slight export softness. The trend is clearly improving on domestic volumes, premium mix, and EV positioning, making the outlook constructive heading into H2 FY27.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 8,851 | 9,533 | 9,788 | 9,617 | 10,211 | 10,483 | 10,260 | 9,970 | 9,728 | 12,218 | 12,487 | 12,978 | 13,126 |
| Expenses | 7,734 | 8,174 | 8,403 | 8,298 | 8,804 | 9,033 | 8,844 | 8,529 | 8,315 | 10,452 | 10,735 | 11,109 | 11,424 |
| Operating Profit | 1,117 | 1,360 | 1,385 | 1,319 | 1,407 | 1,450 | 1,416 | 1,441 | 1,413 | 1,766 | 1,752 | 1,870 | 1,702 |
| OPM % | 13% | 14% | 14% | 14% | 14% | 14% | 14% | 14% | 15% | 14% | 14% | 14% | 13% |
| Other Income | 66 | 213 | 288 | 177 | 225 | 239 | 306 | 345 | 939 | 240 | 179 | 210 | 460 |
| Interest | 21 | 25 | 23 | 8 | 19 | 18 | 17 | 17 | 21 | 19 | 20 | 19 | 21 |
| Depreciation | 180 | 187 | 194 | 197 | 205 | 206 | 209 | 204 | 206 | 210 | 219 | 220 | 220 |
| PBT | 982 | 1,360 | 1,456 | 1,292 | 1,408 | 1,464 | 1,497 | 1,565 | 2,126 | 1,777 | 1,692 | 1,841 | 1,921 |
| Tax % | 29% | 26% | 25% | 27% | 27% | 27% | 26% | 25% | 20% | 26% | 25% | 20% | 26% |
| Net Profit | 701 | 1,007 | 1,091 | 943 | 1,032 | 1,066 | 1,108 | 1,169 | 1,706 | 1,321 | 1,275 | 1,474 | 1,418 |
| EPS in Rs | 35.53 | 50.35 | 54.7 | 46.77 | 52.31 | 53.19 | 55.38 | 58.06 | 85.26 | 65.42 | 63.35 | 72.97 | 70.59 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 27,538 | 28,457 | 28,610 | 32,458 | 33,971 | 29,254 | 30,959 | 29,551 | 34,158 | 37,789 | 40,923 | 47,411 | 50,810 |
| Expenses | 24,018 | 24,033 | 24,025 | 27,124 | 28,946 | 25,184 | 26,902 | 26,295 | 30,060 | 32,554 | 35,135 | 40,352 | 43,720 |
| Operating Profit | 3,520 | 4,424 | 4,585 | 5,334 | 5,025 | 4,070 | 4,058 | 3,256 | 4,099 | 5,235 | 5,789 | 7,059 | 7,090 |
| OPM % | 13% | 16% | 16% | 16% | 15% | 14% | 13% | 11% | 12% | 14% | 14% | 15% | 14% |
| Other Income | 325 | 421 | 830 | 564 | 741 | 1,434 | 553 | 545 | 567 | 689 | 1,040 | 1,310 | 1,089 |
| Interest | 12 | 15 | 27 | 31 | 37 | 47 | 46 | 53 | 105 | 76 | 71 | 78 | 79 |
| Depreciation | 540 | 443 | 502 | 575 | 624 | 846 | 715 | 690 | 697 | 757 | 825 | 855 | 869 |
| PBT | 3,292 | 4,387 | 4,885 | 5,292 | 5,104 | 4,611 | 3,849 | 3,058 | 3,864 | 5,090 | 5,934 | 7,436 | 7,230 |
| Tax % | 29% | 29% | 27% | 30% | 32% | 21% | 24% | 24% | 28% | 26% | 26% | 22% | — |
| Net Profit | 2,364 | 3,112 | 3,546 | 3,722 | 3,466 | 3,659 | 2,936 | 2,329 | 2,800 | 3,742 | 4,376 | 5,776 | 5,488 |
| EPS in Rs | 118 | 157 | 179 | 186 | 172 | 182 | 146 | 116 | 141 | 187 | 219 | 287 | 272 |
| Div. Payout % | 51% | 46% | 47% | 51% | 50% | 49% | 72% | 82% | 71% | 75% | 75% | 64% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 |
| Reserves | 6,500 | 8,794 | 10,276 | 11,932 | 13,080 | 14,366 | 15,376 | 15,807 | 16,616 | 17,659 | 19,232 | 21,571 |
| Borrowings | 100 | 232 | 261 | 228 | 312 | 453 | 584 | 605 | 568 | 606 | 700 | 779 |
| Other Liabilities | 4,014 | 3,829 | 4,736 | 5,197 | 5,072 | 4,815 | 7,096 | 6,027 | 6,694 | 7,847 | 8,418 | 11,063 |
| Total Liabilities | 10,654 | 12,896 | 15,312 | 17,397 | 18,504 | 19,674 | 23,096 | 22,478 | 23,917 | 26,153 | 28,390 | 33,453 |
| Fixed Assets | 2,952 | 3,784 | 4,599 | 4,961 | 4,952 | 6,473 | 6,380 | 6,194 | 6,159 | 6,232 | 6,283 | 6,374 |
| CWIP | 719 | 653 | 581 | 355 | 573 | 391 | 495 | 517 | 454 | 484 | 487 | 765 |
| Investments | 3,118 | 4,501 | 6,066 | 7,669 | 6,114 | 8,359 | 10,582 | 10,528 | 10,891 | 12,751 | 14,384 | 19,286 |
| Other Assets | 3,864 | 3,958 | 4,066 | 4,411 | 6,865 | 4,451 | 5,639 | 5,240 | 6,413 | 6,685 | 7,236 | 7,028 |
| Total Assets | 10,654 | 12,896 | 15,312 | 17,397 | 18,504 | 19,674 | 23,096 | 22,478 | 23,917 | 26,153 | 28,390 | 33,453 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 2,186 | 3,722 | 4,007 | 4,017 | 1,032 | 5,518 | 4,110 | 2,104 | 2,614 | 4,923 | 4,297 | 8,315 |
| Investing | 31 | -2,300 | -1,972 | -1,858 | 1,298 | -2,819 | -2,289 | -222 | -421 | -1,828 | -1,703 | -4,478 |
| Financing | -2,131 | -1,475 | -2,036 | -2,102 | -2,252 | -2,602 | -1,852 | -1,975 | -2,147 | -2,717 | -2,815 | -3,534 |
| Net Cash Flow | 86 | -53 | -1 | 57 | 78 | 97 | -31 | -94 | 45 | 379 | -221 | 303 |
| Free Cash Flow | 955 | 2,094 | 2,771 | 3,196 | 57 | 4,230 | 3,537 | 1,545 | 2,052 | 4,146 | 3,463 | 7,227 |
| CFO/OP | 90 | 109 | 113 | 104 | 62 | 149 | 125 | 89 | 85 | 119 | 101 | 134 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 18 | 16 | 20 | 16 | 29 | 19 | 27 | 27 | 29 | 25 | 30 | 18 |
| Inventory Days | 16 | 14 | 14 | 16 | 19 | 24 | 30 | 26 | 27 | 25 | 27 | 31 |
| Days Payable | 50 | 51 | 62 | 56 | 54 | 58 | 88 | 76 | 73 | 80 | 77 | 88 |
| Cash Conversion Cycle | -16 | -20 | -29 | -24 | -5 | -15 | -32 | -23 | -17 | -30 | -20 | -40 |
| Working Capital Days | -15 | -12 | -17 | -15 | 6 | -10 | -21 | -14 | -7 | -17 | -11 | -31 |
| ROCE % | 50% | 54% | 48% | 45% | 39% | 27% | 24% | 18% | 23% | 29% | 30% | 35% |
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Company Information
Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle manufacturers. The company started in 1984 as a Technological collaboration with Honda, Japan. Before this collaboration, Hero was selling Cycles under the brand name, Hero Cycles. In 2011, Honda group sold its 26% stake in the company to the Munjals (promoters) and ended the JV. Post the termination of JV, the name of the company was changed to Hero Motocorp. [1] [2]