Hero Motors Ltd reported a strong improvement in its June-quarter performance, with net profit more than doubling year-on-year as revenue growth and higher operating earnings supported profitability.
The company's consolidated net profit rose to Rs 10.2 crore in Q1FY27, compared with Rs 4.7 crore in the corresponding quarter last year. Revenue from operations increased 24.9% to Rs 319 crore, from Rs 256 crore a year earlier.
Operating performance improved even faster. EBITDA surged 93% to Rs 35.9 crore, compared with Rs 18.6 crore in Q1FY26. Consequently, the EBITDA margin expanded to 11.2% from 7.3%, an improvement of 390 basis points.
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Powertrain Business Drives Profit Growth
The segment breakdown highlights the growing contribution of Hero Motors' powertrain operations. Revenue from Powertrain Solutions increased to Rs 170.53 crore from Rs 135.54 crore year-on-year.
Its segment result rose to Rs 33.50 crore from Rs 18.11 crore, making it the primary profit contributor.
The Alloy and Metallics business also recorded revenue growth, reaching Rs 165.91 crore compared with Rs 127.89 crore in the year-ago quarter.
However, the segment reported a loss of Rs 2.55 crore, against a loss of Rs 3.66 crore previously. This difference between the two businesses is important. While both segments recorded higher revenue, profitability remained concentrated in Powertrain Solutions.
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Hero Motors supplies engineered powertrain systems and metal components to automotive manufacturers. Its products serve two-wheelers, performance vehicles, off-road vehicles and electric and hybrid vehicles.
It gives the company exposure to several parts of the automotive supply chain as manufacturers develop new mobility technologies.
The latest results indicate that stronger operating performance is translating into higher earnings. Investors will watch whether the company can sustain margin gains while improving profitability in its Alloy and Metallics business.
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