Can Hero MotoCorp Ride the Festive Momentum to Sustain FY26 Growth?
About Hero MotoCorp
Hero MotoCorp, the world’s largest two-wheeler manufacturer, continues to expand its leadership with new premium launches and EV adoption. The company benefits from a wide rural distribution network and a strong balance sheet.
The second quarter saw strong demand in rural regions and improved margins due to a richer product mix and input cost stability.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10,390 Cr | +15% | +8% |
| EBITDA | ₹1,390 Cr | +27% | +10% |
| EBITDA Margin | 13.3% | vs 11.9% | vs 12.7% |
| Net Profit | ₹1,050 Cr | +32% | +9% |
Revenue ₹10,390 Cr — driven by strong festive season volumes and new product launches.
EBITDA ₹1,390 Cr — up on better pricing and cost management.
EBITDA Margin 13.3% — shows operational leverage and volume recovery.
Net Profit ₹1,050 Cr — boosted by improved sales mix and lower input costs.
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Peer Comparison
| Company | Revenue Growth | EBITDA Margin |
|---|---|---|
| Hero MotoCorp | 15% | 13.3% |
| Bajaj Auto | 19% | 17.8% |
| TVS Motor | 16% | 11.9% |
Hero maintains leadership in rural market share while improving profitability across product lines.
Strengths & Weaknesses
Strengths
|
Weaknesses
|
Improved product mix and new premium launches to enhance brand value.
Opportunities & Threats
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Valuation & Investment View
- Short-term: Momentum positive above ₹5,200.
- Medium-term: Healthy margins and volume outlook.
- Long-term: Dividend-paying auto blue-chip with EV optionality.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that Hero MotoCorp’s strong festive momentum and premiumization drive long-term growth. Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only...











