Hero MotoCorp Limited Earnings Summary — Q1 FY2027
Hero MotoCorp Accelerates into FY27 with 36% Revenue Surge and Robust Premium Momentum
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹13,126 Cr is 34.9% higher year-on-year.
- Revenue has compounded at 14.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹1,412 Cr is 17.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 20.1% annualised across the period.
- Operating margin stands at 13.0% in Q1 FY2027.
- Operating margin compressed by 155 bps year-on-year.
- Over the last two years operating margin has contracted by 81 bps.
- PBT margin is 14.6%.
- Expenses grew 37.4% against revenue growth of 34.9%.
- Operating profit of ₹1,702 Cr is 20.5% higher year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 65/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 13,126 | 12,978 | 12,487 | 12,218 | 9,728 | 9,970 | 10,260 | 10,483 | 10,211 | 9,617 |
| Expenses | Improving | 11,424 | 11,109 | 10,735 | 10,452 | 8,315 | 8,529 | 8,844 | 9,033 | 8,804 | 8,298 |
| Operating Profit | Improving | 1,702 | 1,870 | 1,752 | 1,766 | 1,413 | 1,441 | 1,416 | 1,450 | 1,407 | 1,319 |
| Operating Margin | Stable | 13.0% | 14.4% | 14.0% | 14.4% | 14.5% | 14.4% | 13.8% | 13.8% | 13.8% | 13.7% |
| Other Income | Volatile | 460 | 210 | 179 | 240 | 939 | 345 | 306 | 239 | 225 | 177 |
| Interest | Volatile | 21 | 19 | 20 | 19 | 21 | 17 | 17 | 18 | 19 | 8 |
| Depreciation | Stable | 220 | 221 | 219 | 210 | 206 | 204 | 209 | 206 | 205 | 197 |
| Profit Before Tax | Improving | 1,921 | 1,841 | 1,692 | 1,777 | 2,126 | 1,565 | 1,497 | 1,464 | 1,408 | 1,292 |
| Tax | Improving | 503 | 367 | 417 | 456 | 420 | 396 | 389 | 398 | 375 | 349 |
| Net Profit | Improving | 1,412 | 1,460 | 1,268 | 1,309 | 1,705 | 1,161 | 1,108 | 1,064 | 1,046 | 935 |
| Net Margin | Improving | 10.8% | 11.3% | 10.2% | 10.7% | 17.5% | 11.7% | 10.8% | 10.2% | 10.2% | 9.7% |
Key Takeaways
- Standalone revenue grew 36% YoY to ₹12,999 crore, driven by a 23% increase in volumes to 16.77 lakh units.
- Global business and Harley-Davidson segments showed exceptional growth of 63% and 105% YoY respectively.
- The emerging mobility brand, VIDA, recorded 151% YoY growth, supported by a 'Battery-as-a-Service' campaign.
- Parts, Accessories, and Merchandising (PAM) revenue grew 30% YoY, contributing significantly to the top line.
- Consolidated PAT was impacted YoY due to a one-time gain of ₹722 crore in the prior year's same quarter from associate dilution.
- Company expanded its premium reach with 70 new touchpoints, bringing the 'Premia' network to 132 outlets.
Management Guidance
Management remains focused on building a future-ready mobility company by accelerating premiumisation and scaling the electric mobility business. They aim to expand the global footprint while retaining leadership in the commuter segment through continued investments in technology and innovation.
Sentiment Shift
Improving
Robust volume growth across all segments (ICE and EV) and strong execution in global/premium markets indicate a reversal of stagnant growth trends seen in previous years.
Outlook
The outlook is bolstered by the successful rollout of flex-fuel variants and new premium models like the XPulse 210 and Xtreme 250R. A strategic re-entry into Ecuador and expansion in the UK market signal aggressive international ambitions.
From the Annual Report (Key Quotes)
“We have commenced FY'27 with strong momentum, delivering broad-based growth across our premium, electric mobility, commuter segments and global business.”
“Our growth strategy is centered on building a future-ready mobility company by accelerating premiumisation and scaling our electric mobility business.”
“VIDA continued its strong growth trajectory during Q1 FY’27, recording 151% year-on-year growth.”
Official Quarterly Documents
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This summary is AI-generated from Hero MotoCorp Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.