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.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
4- Company is almost debt free.
- Stock is providing a good dividend yield of 3.14%.
- 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 9h 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 3h ago- Consolidated PAT fell 17% YoY Aug 7
While standalone PAT rose 29%, consolidated PAT declined 17% YoY to ₹1,418 crore in Q1FY26, suggesting pressure from subsidiaries/associates.
- Q2 FY27 input cost pressures Aug 10
Management flagged input cost headwinds for Q2 FY27, planning to offset through product mix improvements and cost-saving initiatives.
- Global exports dipped slightly Aug 1
Despite new market entries, global exports saw a slight decline in July 2026 dispatches.
- Munjal remuneration faces dissent Aug 6
Dr. Pawan Munjal's remuneration resolution faced notable dissent from institutional investors at the 43rd AGM.
- Q1FY27 revenue surges 36% Aug 7
Hero MotoCorp reported Q1FY27 standalone revenue of ₹12,999 crore with 29% standalone PAT growth to ₹1,454 crore, 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 profitability improvement.
- July dispatches jump 19% YoY Aug 1
Hero MotoCorp reported 533,416 unit dispatches in July 2026, a 19% YoY increase reflecting strong domestic demand.
- EV capacity tripling in FY27 Aug 10
Company plans to triple EV production capacity from 15,000 to 45,000 units/month within FY27, with PLI accruals covering 100% of EV portfolio by December 2026.
- ₹1,000 crore Ather investment Jul 14
Board approved up to ₹1,000 crore investment in associate Ather Energy via preferential allotment, strengthening its EV ecosystem play.
- VIDA launches in Nepal Jul 26
Hero MotoCorp expanded VIDA electric brand internationally via partnership with CG Motors in Nepal, launching VX2 EVOOTER and DIRT.E K3 models.
- Germany market entry Jul 18
Entered Germany as 53rd global market via KSR Group partnership, launching XPulse 200 4V at €2,990 with plans for 28+ sales outlets.
- Investor conference Aug 18 Aug 12
Hero MotoCorp to present at Motilal Oswal 22nd Annual Global Investor Conference in Mumbai on August 18, 2026.
- Electric motorcycles planned next year Aug 7
Company announced plans to introduce electric motorcycles beginning next year, expanding beyond electric scooters. No financial specifics disclosed.
- AGM approves ₹185 dividend Aug 6
Shareholders approved ₹185 per share dividend and key board resolutions at 43rd AGM with near-unanimous support on financials.
- Premium segment CBO appointed Aug 3
Anuj Dua appointed as Chief Business Officer for premium segment, bringing experience from Royal Enfield and Bajaj Auto to drive Harley-Davidson X440 and Hero Premia growth.
- Q1FY27 earnings call held Aug 7
Post-results conference call conducted on August 7, 2026 with CEO Harshavardhan Chitale and CFO Vivek Anand discussing quarterly performance.
TL;DR: Hero MotoCorp is firing on multiple cylinders — 36% revenue growth, 19% dispatch growth, and a raised margin target of 16-17% reflect strong operational momentum in both domestic and premium segments. The aggressive EV capacity tripling plan and international expansion into Germany and Nepal demonstrate strategic ambition. Key risks include near-term input cost pressures in Q2 FY27, weakness at the consolidated level, and execution risk on the EV ramp-up. The trend is clearly improving, with volume growth, premiumization, and EV investments positioning the company well for the medium term.
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% |
Documents
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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]