Hero Motocorp

Hero MotoCorp reported its highest ever quarterly revenue of INR12,328 crores in Q3 FY26, marking a 21% year-on-year growth. EBITDA for the quarter stood at INR1,810 crores, up 23% YoY, with normalized PAT reaching INR1,489 crores, a 20% YoY increase. The overall EBITDA margin improved by 20 basis points to 14.7%, while the ICE business EBITDA margin expanded by 100 basis points to 17%. An exceptional provision of INR119 crores was made for the new labour code.

The company demonstrated strong market share gains across various segments. In the Deluxe 100cc category, Splendor achieved a 91% market share, its highest since FY18. The HF Deluxe Pro accounted for 20% of HF retail volumes in January '26. In the 125cc segment, Glamour X saw 70% YoY retail growth in January '26, and the dual channel variant of Xtreme 125R contributed over 35% of its retail volumes. The ICE scooter segment's market share increased to nearly 7%, supported by new launches.

Hero MotoCorp's EV brand, VIDA, saw its market share expand by 6% year-on-year to 10.8% in Q3 FY26, driven by the recently introduced VIDA VX2 portfolio. The company invested INR208 crores in the EV business during the quarter, down from INR252 crores in the previous quarter. VIDA now holds over 20% share in 28 towns and is among the top 2 players in 37 towns, with quarterly revenue of INR450 crores. The Battery-as-a-Service offering is also gaining traction, improving EV affordability.

Global business volumes grew significantly by 41% year-on-year, with market share increasing by 100 basis points to 7.5%. The premium portfolio now contributes 40% of total global volumes. The Colombia business, in particular, saw over 200% volume growth and an increase in market share from 5% to 9%, achieving profitability with a PAT of 5 million in the first 9 months. Hero MotoCorp is expanding into new geographies like Europe, Latin America, and North/West Africa, and has started operations in the Philippines.

The Indian economy is projected to grow at 7.3% for FY26, with the RBI forecasting GDP growth close to 7% for FY27. The 2-wheeler industry is expected to grow by double digits in the current quarter, with Hero MotoCorp aiming to outgrow the industry. Management anticipates continued strong momentum into Q4 FY26 and FY27, driven by factors like GST rate reduction, government initiatives, and a strong rural market post-harvest. Macro trends like urbanization and increased women's participation in the workforce are expected to favor scooter expansion.

Hero MotoCorp remains committed to investing in growth areas such as premium products, scooters, EV portfolio, and global business. The company also focuses on improving customer service through initiatives like Hero 2.0 and Premia stores, with 106 Premia stores now covering over 50% of the premium industry footprint. An interim dividend was announced, reflecting strong financial performance. The company is also working on bolstering its supply chain and capacities to support growth across segments, including addressing occasional bottlenecks for high-demand models.