Hero MotoCorp Q2 FY27 Results: Net Profit Jumps 40.8% to ₹1,860 Crore on Strong Sales

Key numbers

P/E TTM	19.55Sector 31.38
Market Cap	₹1,06,525 CrLarge Cap
RSI	52.38Neutral Zone
1-Year Price	-5.74%Change

Key highlights

• Consolidated Net Profit rose 40.8% YoY to ₹1,860 crore from ₹1,321 crore in Q2-26
• Revenue from Operations reached ₹14,970 crore, a 23% increase over the previous year
• Operating margins improved to 15.6% in Q2 FY27, up from 14.3% in the same quarter last year
• Results include a ₹397 crore gain from the equity consolidation of an associate company
• Scooter portfolio volume grew 47% to 2.40 lakh units, while VIDA EV retail sales rose 76%

Operational Growth and Margin Expansion

Hero MotoCorp's consolidated revenue from operations for the quarter ended September 30, 2026, stood at ₹14,970 crore, reflecting a robust 23% year-on-year growth. The company witnessed significant margin expansion, with operating margins climbing to 15.6% from 14.3% in the year-ago period. A pivotal contributor to the bottom line was a ₹397 crore gain arising from the equity consolidation of an associate company, following its capital raise through Qualified Institutional Placement and Private Placement.

On a standalone basis, the company sold 18.68 lakh units of motorcycles and scooters, registering a 10% volume growth.

Segmental Performance and EV Momentum

• The scooter portfolio grew 47% YoY to 2.40 lakh units, with ICE scooter market share rising to 7.3%.
• Electric vehicle brand VIDA recorded a 76% YoY retail growth, reaching 66,531 units during the quarter.
• Market share in the 100cc motorcycle segment expanded by 5% YoY to 84.4%, led by the Splendor portfolio.
• The Parts, Accessories, and Merchandising business grew 27% YoY, contributing ₹1,941 crore in revenue.
• Harley-Davidson business recorded a 19% YoY increase in H1, surpassing 50,000 units of X440/X440T on road.
• Entry into Germany marked the company's 54th global market during the second quarter.

Strategic Capital Allocation and Global Expansion

The Board has approved an additional investment of up to ₹300 crore in its wholly-owned subsidiary, HMCL Netherlands B.V., to be deployed over the next two years. This capital is earmarked for further investment in step-down subsidiaries in Colombia and Brazil. This follows an earlier strategic investment of ₹959.99 crore on July 19, 2026, to increase the company's stake in Ather Energy to 30.68%.

Furthermore, the company has announced a cumulative investment of over ₹3,200 crore in Andhra Pradesh, including the foundation of a second Global Parts Centre in Tirupati.

Management Perspective

We delivered a strong performance this quarter, with scooters emerging as a key growth contributor, supported by healthy momentum across both, ICE and VIDA electric portfolio.

What to watch next

• Completion of the ₹300 crore investment tranches in international subsidiaries over the next 2 years
• Implementation of pricing mechanisms for EPR certificates under ELV Rules effective April 2025
• Operationalization of the second Global Parts Centre in Tirupati, Andhra Pradesh

“Our 100cc motorcycle segment also continued to contribute to overall growth, underscoring the resilience of our portfolio.”

Hero MotoCorp · financial snapshot

Share price	₹5322.5
Market capitalisation	₹1.07L Cr
Revenue (annual)	₹47,411.24 Cr
Net profit (annual)	₹5,741.73 Cr
Revenue (latest quarter)	₹13,126.35 Cr+1.14% vs previous quarter
Net profit (latest quarter)	₹1,412.36 Cr-3.26% vs previous quarter
P/E (TTM)	19.55×Sector 31.38×
Promoter holding	34.72%-0.01% QoQ
FII holding	32.22%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.