MUMBAI: EVs, exports, and earnings, Hero MotoCorp’s first quarter of FY26 was anything but idle. The world’s largest two-wheeler maker posted a consolidated net profit of Rs 1,706 crore for the April–June 2025 quarter, a staggering 65 per cent jump from Rs 1,032 crore a year ago. A significant portion Rs 722 crore of that windfall came from a one-time gain following the partial dilution of Hero’s stake in Ather Energy, which went public this quarter.
On a consolidated basis, Hero Motocorp clocked revenue from operations at Rs 9,728 crore, while standalone revenue stood at Rs 9,579 crore. Profit after tax (PAT) on a standalone basis was Rs 1,126 crore, flat compared to Rs 1,123 crore in Q1 FY25.
Despite a slight drop in volumes 13.67 lakh units sold this quarter versus 15.35 lakh last year, the bottom line remained buoyant thanks to a steady 14.4 per cent EBITDA margin (Rs 1,382 crore), mirroring last year’s performance. The consolidated EBITDA margin nudged slightly higher at 14.5 per cent.
Hero’s electric vehicle (EV) arm, VIDA, continues to plug into new opportunities. It launched a subscription-based Battery-as-a-Service (BaaS) model and introduced the Evooter VX2. A campaign titled ‘Charging Simple Hai’, timed with the IPL, spotlighted VIDA’s swappable battery tech.
On the global front, Hero pushed four new products into the Sri Lankan market in collaboration with long-time distributor Abans Auto: the Xoom 110, Hunk 160R 4V, Xtreme 125R and HF Deluxe.
The 125cc scooter segment, led by Destini 125 and Xoom 125, and the newly launched HF Deluxe Pro in the 100cc segment helped maintain retail traction. VAHAN registrations remained healthy, and the upcoming festive season could accelerate demand.
Premium positioning also got a boost with the Harley-Davidson 2025 line-up rollout, including the return of Street Bob and new Road Glide and Street Glide variants. Hero also opened new Premia stores across the country, reaching the 100-store milestone.
Hero is also tackling regulatory curves. While the company awaits clarity on obligations under the End-of-Life Vehicle (ELV) Rules 2025, it has not yet accounted for any financial impact, citing lack of a defined pricing or certification framework.
Meanwhile, Hero continues to invest in brand visibility on and off the road. It signed golfers Akshay Bhatia and Sahith Theegala as global ambassadors and added young Austrian rider Tobias Ebster to the Hero Motosports Rally team.
Hero’s leadership sounds confident. Hero Motocorp chief financial officer Vivek Anand noted strong performance across electric, global and premium categories and flagged a “robust pipeline of new launches” for the coming quarters.
Investors also got good news earlier this year, with the Board approving a final dividend of Rs 65 per share, taking the FY25 total to Rs 165 per share (8,250 per cent).
Despite a temporary production pause that impacted dispatches, Hero appears ready to hit the throttle as it enters the festive season. With electric mobility gaining traction, international markets humming, and Ather’s IPO money in the bank, Hero seems geared for a smooth ride into the rest of FY26.