Hero MotoCorp (HEROMOTOCO) Q4 25/26 earnings summary

Executive summary

• Achieved record revenue and profit for FY 2026, maintaining global two-wheeler leadership for 25 years.

• Sold 64.69 lakh two-wheelers in FY26, up 10% YoY; Q4 volume grew 24% YoY to 17.14 lakh units.

• Strong growth in focus segments: scooters up 48% YoY, EV scooter volumes up 2.5x, global business up 41%, and Harley-Davidson range up 26%.

• Nine impactful launches and multiple refreshes in ICE and EV portfolios, with continued market share gains across key segments.

• Expanded global footprint to 52 countries and strengthened electric mobility business with VIDA and strategic investments.

Financial highlights

• FY 2026 standalone revenue at INR 46,830 crores (+15%), EBITDA at INR 6,871 crores (+17%), PAT at INR 5,268 crores (+14%); Q4 revenue at INR 12,797 crores (+29%), EBITDA at INR 1,856 crores (+31%), PAT at INR 1,401 crores (+30%).

• Consolidated revenue for FY26: Rs. 47,411 crore, up 16%; consolidated PAT: Rs. 5,776 crore, up 32%.

• ICE business EBITDA margin expanded by 100 bps YoY in Q4 to 17%; overall EBITDA margin improved by 30 bps to 14.7% for FY26.

• Final dividend of INR 75/share, total FY 2026 dividend at INR 185/share, maintaining 70%+ payout.

• Cash flow from operations at INR 9,395 crores, up 80% YoY; standalone net cash from operations at Rs. 8,314.92 crore.

Outlook and guidance

• Industry expects high single-digit volume growth in FY 2027, with scooters outpacing motorcycles.

• Company aims to outgrow industry in both motorcycles and scooters, with multiple new launches planned.

• Medium-term margin guidance maintained at 14%-16%, with short-term margin impact expected from commodity headwinds.

• Management expects continued growth, supported by positive consumer sentiment, government policies, and momentum in premium and electric vehicle segments.

• High single-digit growth anticipated for the current fiscal year, with stronger growth in H1 due to base effect.