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Informist, Monday, Feb. 2, 2026

By Anand JC

MUMBAI – Hero MotoCorp Ltd. is expected to register its strongest revenue growth in the last two years for the December quarter, primarily because of healthy growth in despatches of its two-wheelers during the festival season, according to brokerages. The broader Indian two-wheeler industry also clocked record wholesale sales of 5.70 million units during the quarter, supported by the cut in the goods and services tax rates and one of the strongest festival seasons in recent years.

The Karizma maker's bottom line for the December quarter is expected to grow at a six-quarter high of 20% on year to INR 14.45 billion, according to the average of estimates from 12 brokerages. Estimates for the company's December quarter net profit range from a high of INR 19.12 billion by Elara Securities (India) Pvt. Ltd. to a low of INR 13.63 billion by Motilal Oswal Financial Services Ltd.

Hero MotoCorp's top line for the reporting quarter is projected to be INR 122.03 billion, which would translate to a year-on-year growth rate of 20%, according to the average of estimates. Estimates for the company's December quarter revenue range from a high of INR 124.50 billion by YES Securities (India) Ltd. to a low of INR 118.40 billion by Motilal Oswal.

The company sold 1.70 million two-wheelers in the December quarter, up 16% on year. This includes 1.59 million two-wheelers sold in India and 102,185 units sold overseas. Domestic two-wheeler sales grew 15% on year while exports rose 41% on year. Motorcycles form roughly 90% of the company's overall sales volume.

The Splendor maker's market share in two-wheelers was 31.6% as of October, per the latest available data. The company is the market leader in the entry-level motorcycle segment, which includes models with an engine capacity of 100-110 cubic centimetres. This segment forms roughly 46% of all motorcycles sold in India and Hero MotoCorp has an unassailable 83% market share of this segment .

Analysts expect the average selling price of Hero MotoCorp's two-wheelers to improve 2-5% on year for the reporting quarter due to lower discounts and a higher mix of exports and premium scooters. Hero MotoCorp's realisation per vehicle is projected to be INR 71,848 for the latest quarter, up 3% from INR 69,755 in the year-ago quarter, Motilal Oswal said.

Hero MotoCorp's earnings before interest, tax, depreciation, and amortisation for the December quarter are expected to be INR 18.15 billion, which would translate to a growth of 23% on year, according to the average of estimates from 11 brokerages. Estimates for the company's December quarter EBITDA range from a high of INR 18.71 billion by Emkay Global Financial Services Ltd. to a low of INR 17.37 billion by Motilal Oswal.

The company's EBITDA margin is expected to improve 34 basis points on year to 14.8% for the December quarter, Nirmal Bang said. "The EBITDA margin is expected to expand slightly YoY, supported by improved operating leverage, a richer product mix, and continued cost optimization initiatives," Nirmal Bang said.

The company will detail its December quarter earnings Thursday.

On Monday, shares of the company closed at INR 5,623 on the National Stock Exchange, up 2.2%. The stock is up roughly 2% since the company reported its September quarter results but is down 12% from its 52-week high of INR 6,388, hit on Dec. 5.

Of the 11 research recommendations on Hero MotoCorp available with Informist, 10 have a "buy" recommendation on the stock with an average target price of 6,629, implying an upside of 18% on the current market price. One brokerage has a "hold" recommendation with a target price of INR 5,817.

Following are the Oct-Dec earnings estimates for Hero MotoCorp from 12 brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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