Hero MotoCorp Profit Jumps 42.2% to 1,861.33 Crore Rupees Despite Missing Estimates
Key Facts
Hero MotoCorp reported a 42.2% year-on-year rise in consolidated net profit attributable to the company’s owners to 1,861.33 crore rupees in the second quarter of fiscal 2026-2027. Profit was 1,308.89 crore rupees in the same period a year earlier, according to the company’s published results. But the growth fell short of the average analyst estimate; profit after tax was 14.56 billion rupees, compared with a forecast of 15.22 billion rupees, Reuters reported, citing data compiled by LSEG. The results come as revenue and motorcycle and scooter shipments rose, while raw material costs pressured Indian automakers. The quarter’s results also included a gain from equity consolidation of an associate, an additional factor in assessing profit performance.
Consolidated operating revenue rose to 14,971 crore rupees in the quarter from 12,218 crore rupees a year earlier, an increase of 23%, Business Standard reported, citing PTI. The company recorded total shipments of 18.68 lakh motorcycles and scooters, up 10% year on year. The shipment growth shows activity expanding across both categories, while revenue increased faster than reported shipment volume. Meanwhile, consolidated expenses rose to 13,227.99 crore rupees from 10,583.87 crore rupees a year earlier, according to Autocar Professional. Profit before tax was 2,361.39 crore rupees, compared with 1,776.88 crore rupees in the second quarter of the previous fiscal year.
Scooters were among the main sales drivers, with sales rising 47% to 2.40 lakh units in the September quarter of fiscal 2026-2027. For the electric VIDA brand, retail sales increased 76% year on year to 66,531 units during the quarter. These are VIDA retail sales figures, while the company reported total shipments of 18.68 lakh motorcycles and scooters. Chief Executive Harshavardhan Chitale said scooters had become "a key contributor to the quarter's growth." He added that performance had "good momentum across the internal combustion engine range and the electric VIDA portfolio," referring to the contribution of electric and conventional models to the category’s growth.
The quarter and first-half results included a gain of 397 crore rupees from equity consolidation of an associate, according to a company statement cited by Business Standard. This followed an increase in the associate’s capital through a qualified institutional placement and a private placement. The gain adds another component to the period’s results alongside revenue and sales growth. For the first half ended September 30, 2026, consolidated revenue was 28,096.85 crore rupees. Consolidated net profit attributable to the company’s owners reached 3,273.69 crore rupees in the first half, up 8.6% from the same period a year earlier.
On overseas expansion, Hero MotoCorp entered the German market during the quarter, making Germany its 54th global market. The company also launched the XPulse 200 4V and XPulse 200 4V Pro in Bangladesh, Business Standard reported, citing PTI. Meanwhile, Reuters said higher prices for raw materials including steel and copper pressured Indian automakers following price increases linked to the conflict in the Middle East. Analysts said sales growth is likely to moderate in the second half of the fiscal year despite resilient demand, because of a higher comparison base from a year earlier. This places the outlook for the coming period in the context of the comparison base and the costs facing the sector.