Hero Motors' net profit for the quarter ended June 2026 surged by 145% compared to the same period last year, reaching ₹10 crore. This strong performance led to a 3.74% rise in the company's share price on the National Stock Exchange (NSE) following the announcement of its Q1 FY27 results. The company’s revenue also increased by 25% year-on-year to ₹319 crore, signaling robust growth in its core automotive business segments.
- Net profit rose 145% year-on-year to ₹10 crore in Q1 FY27.
- Revenue increased 25% year-on-year to ₹319 crore.
- Shares opened 3.74% higher after results announcement.
- Powertrain solutions and alloy metallics segments showed strong growth.
- Sequentially, net profit declined 36.2% from the previous quarter.
What caused the increase in Hero Motors' net profit?
The significant rise in net profit was driven by a 25% year-on-year increase in revenue, which grew from ₹256 crore in Q1 FY26 to ₹319 crore in Q1 FY27. The powertrain solutions segment contributed ₹170.5 crore, up 25% from ₹135.5 crore the previous year. Similarly, the alloy and metallics segment grew 29% to ₹165.9 crore. These gains helped offset elevated costs and led to improved earnings before interest, taxes, depreciation, and amortisation (EBITDA), which nearly doubled to ₹36 crore compared to ₹19 crore in the prior year.
How did Hero Motors' shares perform after the quarterly results?
Following the Q1 FY27 results announcement, Hero Motors shares opened 3.74% higher at ₹164 on the NSE. The shares hit an intraday high of ₹157 but closed slightly lower at ₹154. Since its listing on September 23, 2026, the stock price more than doubled from the issue price of ₹84 to a record high of ₹178.8 within a few trading days, reflecting strong investor confidence.
Did Hero Motors' profit change compared to the previous quarter?
While the year-on-year profit increased sharply, the net profit declined 36.2% sequentially from ₹14 crore in the previous quarter. EBITDA also fell slightly by 3.7% from ₹37 crore in the prior quarter. Despite this, EBITDA margins improved from 7.3% in Q1 FY26 to 11.2% in Q1 FY27 due to stronger revenue growth.
What is Hero Motors' business focus?
Hero Motors operates in the automotive technology sector, specializing in designing, developing, manufacturing, and supplying powertrain solutions and alloy metallics to leading original equipment manufacturers (OEMs) in the automotive industry. The company’s growth in these segments is a key factor behind its improved financial performance.
Frequently Asked Questions
Q: What was Hero Motors' net profit in Q1 FY27?
A: The net profit was ₹10 crore, a 145% increase compared to ₹3.8 crore in Q1 FY26.
Q: How did the revenue perform in Q1 FY27?
A: Revenue rose 25% year-on-year to ₹319 crore.
Q: How did the share price react to the Q1 FY27 results?
A: Shares opened 3.74% higher after the results and have more than doubled since listing.
Q: What caused the sequential decline in profit?
A: Profit fell 36.2% sequentially due to higher costs and other factors, despite revenue remaining stable.
Q: What are the main business segments of Hero Motors?
A: The company focuses on powertrain solutions and alloy metallics for automotive manufacturers.
