Hero MotoCorp reported a 4.6% year-on-year increase in standalone net profit to ₹1,456 crore for the second quarter of financial year 2026–27, supported by stronger sales and higher revenue. Revenue from operations rose 21.1% to ₹14,687 crore for the quarter ended September 30, 2026, as the company benefited from volume growth, product-mix improvements and pricing actions.
However, profit growth remained slower than revenue growth because of higher commodity costs and pressure on operating margins. EBITDA increased approximately 8% to ₹1,968 crore, while the EBITDA margin declined to 13.4% from 15% in the year-ago quarter. Stronger scooter sales, growth in the VIDA electric mobility business and rising revenue from spare parts helped diversify the company’s growth drivers.
Key Takeaways
- Standalone net profit: Increased 4.6% year-on-year to ₹1,456 crore.
- Revenue from operations: Rose 21.1% to ₹14,687 crore.
- EBITDA: Increased approximately 8% to ₹1,968 crore.
- Operating margin: Declined to 13.4% from 15% because of commodity-cost pressures.
- Total vehicle dispatches: Increased 10.5% to 18.68 lakh units.
- Scooter sales: Rose 47.3% to 2.40 lakh units.
- VIDA electric mobility: Retail sales grew 76% year-on-year to 66,531 units.
- Consolidated performance: Revenue increased 23% to ₹14,971 crore, while net profit rose 41% to ₹1,861 crore, including a ₹397 crore gain linked to an associate.
Hero MotoCorp Q2 FY27 Results: Standalone Financial Performance
Hero MotoCorp’s standalone results show that revenue grew considerably faster than net profit during the September quarter. The difference highlights the impact of input costs and operating expenses on profitability.
Quarterly financial results
| Financial metric | Q2 FY26 | Q2 FY27 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹12,126 crore | ₹14,687 crore | +21.1% |
| Net profit | ₹1,393 crore | ₹1,456 crore | +4.6% |
| EBITDA | ₹1,823 crore | ₹1,968 crore | Approximately +8% |
| EBITDA margin | 15.0% | 13.4% | -1.6 percentage points |
| Net profit margin | 11.5% | 9.9% | -1.6 percentage points |
Figures are rounded. Standalone financial results; based on company disclosures and financial reporting.
Revenue growth reflects a combination of higher dispatch volumes, a shift toward higher-value products and pricing actions. Yet the increase in operating costs limited how much of the additional revenue translated into net profit.
The decline in net profit margin also illustrates the pressure on earnings. Although Hero MotoCorp generated more revenue, a smaller proportion of each rupee of sales reached the bottom line.
Why Did Hero MotoCorp’s Profit Grow More Slowly Than Revenue?
The main pressure came from higher commodity and input costs. The company reported that its EBITDA margin declined to 13.4% from 15% a year earlier.
According to Financial Express, raw-material costs increased 26.2% year-on-year, while total expenses rose 23.2%. These increases help explain why operating earnings did not keep pace with the growth in revenue.
At the same time, EBITDA still increased by around 8%, indicating that the company generated higher operating earnings in absolute terms. Cost savings and operating leverage partly offset the pressure from commodities.
The result presents a mixed picture: demand and sales growth were strong, but maintaining margins remains an important challenge. Future profitability will depend partly on input prices, pricing discipline, product mix and the company’s ability to manage expenses.
Motorcycle and Scooter Sales Drive Revenue Growth
Hero MotoCorp dispatched 18.68 lakh motorcycles and scooters during Q2 FY27, compared with approximately 16.91 lakh units a year earlier. This represented a 10.5% increase in total volumes.
Category-wise vehicle dispatches
| Vehicle category | Q2 FY26 | Q2 FY27 | Year-on-year growth |
|---|---|---|---|
| Motorcycles | 15.28 lakh | 16.28 lakh | 6.5% |
| Scooters, including EVs | 1.62 lakh | 2.40 lakh | 47.3% |
| Total | 16.91 lakh | 18.68 lakh | 10.5% |
Figures may differ slightly from totals because of rounding.
Motorcycles remained the company’s largest volume category, supported by its commuter portfolio and the Splendor range. The company also reported more than 20% growth in the Splendor portfolio, according to its earnings coverage.
Scooters, however, recorded the faster growth rate. The combined internal-combustion-engine and electric scooter portfolio expanded by 47.3%, increasing the contribution of scooters to the overall product mix.
The faster growth in revenue compared with total dispatches also suggests that product mix and pricing played an important role. Higher-value models and a greater contribution from scooters and electric vehicles can increase revenue per unit, although the precise contribution varies across products.
VIDA Electric Mobility Records Strong Growth
Hero MotoCorp’s electric mobility brand, VIDA, continued to expand during the quarter. The company reported year-on-year retail growth of 76%, reaching 66,531 units.
Electric mobility remains a strategic area for the company as established two-wheeler manufacturers compete with electric-vehicle specialists. Growth depends not only on the products themselves but also on distribution, charging access, service availability and consumer confidence.
Hero MotoCorp has been expanding its VIDA portfolio and distribution network. Its investor presentation also highlighted additional product variants and continued investment in charging infrastructure and customer services.
Retail sales and wholesale dispatches measure different stages of the market. Retail figures indicate sales to customers, while dispatches generally track vehicles supplied into the distribution channel. They should therefore not be compared as if they were identical measures.
Parts and Accessories Business Adds Another Growth Engine
Hero MotoCorp’s parts, accessories and merchandising business recorded revenue of ₹1,941 crore in Q2 FY27, up 27% from ₹1,533 crore a year earlier.
This business is important because it provides revenue beyond new-vehicle sales. Demand for replacement parts, accessories and related products can be supported by the company’s large installed base of motorcycles and scooters.
A growing parts business can also help strengthen relationships with dealers and customers over the life of a vehicle. Its performance offers a useful indicator of how the company is developing revenue streams beyond manufacturing and selling new vehicles.
The company reported that the parts business continued to expand its portfolio and distribution, including the introduction of an Xclusive Parts range.
Consolidated Results Show Higher Profit Growth
Hero MotoCorp’s consolidated results were stronger than its standalone figures, partly because the consolidated numbers included a ₹397 crore gain associated with the equity consolidation of an associate following a capital raise.
| Consolidated financial metric | Q2 FY26 | Q2 FY27 | Year-on-year change |
|---|---|---|---|
| Revenue | ₹12,170 crore approximately | ₹14,971 crore | +23% |
| Net profit | ₹1,309 crore approximately | ₹1,861 crore | +41% |
| One-time associate-related gain | — | ₹397 crore | — |
Prior-period figures are rounded. The consolidated results include subsidiaries and other consolidation adjustments; they are not directly interchangeable with standalone figures.
The ₹397 crore gain is an important qualification when interpreting consolidated profit growth. It contributed to the reported increase and should be distinguished from recurring earnings generated by the company’s core operations.
For investors assessing the underlying performance, both standalone and consolidated results matter. Standalone figures help evaluate the parent company’s operations, while consolidated figures capture a broader group-level picture.
Hero MotoCorp Approves Additional Investment in Overseas Subsidiaries
The company’s board also approved an additional investment of up to ₹300 crore in HMCL Netherlands B.V., its wholly owned subsidiary. The funds are intended to support the subsidiary’s investments in HMCL Colombia S.A.S. and Hero MotoCorp Do Brasil Ltda.
The investment forms part of Hero MotoCorp’s international business activities. Overseas expansion can create opportunities to reach new customers and diversify revenue geographically, but it also involves execution risks, market competition, foreign-exchange movements and the cost of building distribution and service networks.
The company’s investor presentation highlighted its international presence across 54 markets following its entry into Germany. Actual returns from overseas expansion will depend on demand, local market conditions and the company’s ability to develop sustainable operations.
The Bigger Picture
Hero MotoCorp’s Q2 FY27 results show a company delivering strong revenue growth while navigating pressure on profitability. Higher vehicle volumes, particularly in scooters, and growth in parts and electric mobility helped lift sales. Yet commodity-cost inflation and higher expenses limited the increase in standalone profit and reduced operating margins.
The results also illustrate the importance of looking beyond a single headline number. Consolidated net profit rose faster than standalone profit, but the ₹397 crore associate-related gain contributed to the consolidated increase. For a clearer view of operating performance, investors should track recurring earnings, margins, product mix, vehicle dispatches and the progress of newer businesses together.
FAQs
1. What was Hero MotoCorp’s Q2 FY27 net profit?
Hero MotoCorp reported standalone net profit of ₹1,456 crore for Q2 FY27, an increase of approximately 4.6% from ₹1,393 crore in Q2 FY26.
2. How much did Hero MotoCorp’s revenue increase?
Revenue from operations rose 21.1% year-on-year to ₹14,687 crore in Q2 FY27, compared with ₹12,126 crore in the corresponding quarter of the previous financial year.
3. Why did Hero MotoCorp’s EBITDA margin decline?
The EBITDA margin fell to 13.4% from 15% a year earlier, mainly because of higher commodity and input costs. Cost savings and operating leverage partly offset the pressure.
4. How many vehicles did Hero MotoCorp sell in Q2 FY27?
The company dispatched 18.68 lakh motorcycles and scooters, up 10.5% year-on-year. Motorcycle dispatches rose 6.5%, while scooter dispatches increased 47.3%.
5. How did VIDA perform during the quarter?
VIDA recorded retail sales growth of 76% year-on-year, reaching 66,531 units during Q2 FY27, according to company disclosures reported in the financial results coverage.
Looking Ahead
Hero MotoCorp’s next challenge is to convert its strong revenue and volume growth into more consistent profit growth. Investors will watch commodity prices, operating expenses, the contribution of higher-value products and the company’s ability to sustain momentum in scooters and electric mobility. Improvements in these areas could help ease pressure on margins, although future performance will depend on market conditions and execution.
The company’s investments in electric mobility, parts and international markets also remain important to its longer-term strategy. The coming quarters should provide more evidence about whether these businesses can grow sustainably while supporting the profitability of the core motorcycle business. For now, Q2 FY27 shows strong top-line momentum alongside a clear need to manage costs carefully.
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