Earnings Review
Hero MotoCorp Q2 net profit grows at 5-quarter high but misses Street view
This story was originally published at 20:11 IST on 13 November 2025
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--Hero MotoCorp Jul-Sept net profit INR 13.93 bln
--Analysts saw Hero MotoCorp Jul-Sept net profit at INR 14.29 bln
--Hero MotoCorp Jul-Sept revenue INR 121.26 bln
--Analysts saw Hero MotoCorp Jul-Sept revenue at INR 119.27 bln
--Hero MotoCorp to invest up to INR 1.7 bln for global part center in Andhra
--Hero MotoCorp Jul-Sept net profit INR 13.93 bln vs INR 12.04 bln year ago
--Hero MotoCorp Jul-Sept revenue INR 121.26 bln vs INR 104.63 bln year ago
--Hero MotoCorp Apr-Sept net profit INR 25.19 bln vs INR 23.26 bln year ago
--Hero MotoCorp Apr-Sept revenue INR 217.05 bln vs INR 206.07 bln year ago
--Hero MotoCorp Jul-Sept EBITDA INR 18.23 bln, up 20% on year
--Hero MotoCorp Jul-Sept EBITDA margin 15%, up 55 bps on year
--Hero MotoCorp: Petrol 2-wheelers retail mkt shr up 40 bps YoY Aug 23-Nov 12
By Anand JC
MUMBAI - Hero MotoCorp Ltd.'s bottom line for the September quarter grew at the fastest rate in the last five quarters on a year-on-year basis, but fell short of the Street's expectations. It's record-high top line for the September quarter, however, beat estimates, as the company got a boost from festive stocking and a cut in goods and services tax.
Hero MotoCorp reported a record-high net profit of INR 13.93 billion for the reporting quarter, up almost 16% on year. Analysts had expected the company to report a net profit of INR 14.29 billion.
Its revenue from operations grew nearly 16% on year to INR 121.26 billion for the quarter ended September, higher than consensus expectations of INR 119.27 billion revenue. "During this year's festive season, starting with Onam on Aug. 23, 2025 until Nov. 12, 2025, the growth in ICE (internal combustion engine) VAHAN registrations stood at 16.2%, ahead of industry growth of 14.7% over the comparable period in the previous year, leading with a 40 bps market share gain," the company said in a press release.
The two-wheeler maker's earnings before interest, tax, depreciation, and amortisation for the September quarter stood at INR 18.23 billion, 20% higher than the corresponding period a year ago. This was also higher than analysts' expectations of INR 17.31 billion EBITDA.
"Hero MotoCorp witnessed strong momentum, aided by the success of our new launches, expanding product portfolio, and customercentric marketing campaigns," the company's Chief Financial Officer Vivek Anand, said in a press release. "We expect the momentum in growth to continue, supported by benefits flowing in from the GST reforms, healthy macroeconomic parameters, and a robust product portfolio," Anand said.
Hero MotoCorp sold 1.69 million motorcycles and scooters in the September quarter, up a shade over 11% from 1.52 million units sold in the year-ago quarter. In Apr-Sept, the company sold 3.06 million two-wheelers, barely higher compared to the year-ago period.
The company's EBITDA margin for the September quarter was 15%, up 55 basis points on year. Hero MotoCorp's total expenses grew nearly 15% on year to INR 105.06 billion. This was mainly driven by a 15% growth in its cost of raw materials consumed, which stood at INR 79.76 billion. Input costs form nearly 76% of the company's overall expenses.
Other expenses grew 15% on year to INR 15.10 billion. Hero MotoCorp's tax outgo grew just over 16% on year to INR 4.61 billion for the reporting quarter.
Hero MotoCorp's bottom line for Apr-Sept grew 8% on year to INR 25.19 billion while its revenue from operations increased 4% on year to INR 217.05 billion.
The board of Hero MotoCorp, which is the largest two-wheeler manufacturer in India by volume, has approved an additional investment of INR 1.70 billion to set up its Global Part Center 2.0 at Tirupati in Andhra Pradesh. Commercial operations here are expected to commence in 2027-28 (Apr-Mar).
The company disclosed its September quarter earnings after the market closed for the day. Thursday, its shares closed 0.5% lower on the National Stock Exchange at INR 5,508.50. End
Edited by Vandana Hingorani
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