Hero MotoCorp Ltd. reported a 4.5% year-on-year increase in standalone net profit for the September quarter, broadly in line with analyst estimates, as revenue growth remained strong despite pressure from higher commodity costs.
The two-wheeler maker's net profit rose to Rs 1,456 crore in the second quarter of FY27, compared with Rs 1,393 crore in the year-ago period. Revenue from operations increased 21.1% to Rs 14,687 crore from Rs 12,126 crore a year earlier.
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The company's net profit was expected to come in at Rs 1,493 crore, while revenue was pegged at Rs 14,481 crore. While profit fell short of expectations, revenue exceeded estimates.
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Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7.9% year-on-year to Rs 1,967 crore, against Rs 1,824 crore in the corresponding quarter last year. EBITDA was estimated at Rs 1,929 crore.
The EBITDA margin, however, narrowed to 13.4% from 15% a year earlier, although it remained marginally above the estimated 13.3%.
In its press release, Hero MotoCorp said standalone volumes grew 10% year-on-year during the quarter, with sales of 18.68 lakh motorcycles and scooters. Volumes also increased 11% sequentially compared with the June quarter.
The company attributed its performance to growth across its premium motorcycles, scooters, electric mobility, global business and commuter segments.
Scooters emerged as a key growth driver, with the combined internal combustion engine (ICE) and electric portfolio expanding 47% year-on-year to 2.40 lakh units. Domestic ICE scooter dispatches increased 35%, helping the company expand its market share by one percentage point to 7.3%.
Hero MotoCorp's electric mobility brand VIDA recorded 76% year-on-year retail growth, reaching 66,531 units during the quarter. The company also reported growth of more than 20% in its Splendor portfolio, supporting its position in the 100cc motorcycle segment.
The company's parts, accessories and merchandising business recorded 27% year-on-year growth, generating revenue of Rs 1,941 crore.
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Separately, Hero MotoCorp's board approved an additional investment of up to Rs 300 crore in HMCL Netherlands B.V., its wholly owned subsidiary. The investment will be made in one or more tranches to fund its subsidiaries, HMCL Colombia S.A.S. and Hero MotoCorp Do Brasil Ltda.
On a consolidated basis, Hero MotoCorp reported revenue of Rs 14,971 crore, up 23% year-on-year, and net profit of Rs 1,861 crore, a 41% increase. The consolidated results included a Rs 397 crore gain linked to the equity consolidation of an associate following its capital raise.
Hero MotoCorp said it would continue to focus on profitable growth, premiumisation and expanding its electric mobility portfolio.
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