Hero MotoCorp's Q2 FY27 earnings show a mixed performance with a 5% increase in standalone net profit but a miss on profit after tax (PAT) estimates. The company reported strong revenue growth and volume increases across segments, yet faced challenges impacting overall profitability.
- Standalone net profit rose 5% to ₹1,456 crore in Q2 FY27.
- Revenue from operations increased 21% to ₹14,687 crore year-on-year.
- EBITDA grew 8% to ₹1,967 crore, but EBITDA margin declined to 13.39% from 15.03%.
- Consolidated PAT was ₹1,861 crore, including a ₹397 crore gain from an associate company.
- Volume growth of 10% in Q2 and 11% sequentially over Q1 FY27.
- Plans to invest up to ₹300 crore in overseas subsidiaries.
What were the main financial results for Hero MotoCorp in Q2 FY27?
Hero MotoCorp’s standalone net profit for the quarter ended September 30, 2026, increased by 5% to ₹1,456 crore compared to ₹1,392 crore in the same quarter last year. Revenue from operations jumped 21% to ₹14,687 crore, reflecting strong sales growth. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 8% to ₹1,967 crore, though the EBITDA margin contracted to 13.39% from 15.03% the previous year.
How did the company perform on a consolidated basis?
On a consolidated basis, Hero MotoCorp reported revenue of ₹14,971 crore and profit after tax (PAT) of ₹1,861 crore. This includes a ₹397 crore gain from the equity consolidation of an associate company, which benefited from a capital raise through a qualified institutional placement (QIP) and private placement.
What was the volume growth and segment performance?
The company experienced a 10% volume growth in Q2 FY27 on a standalone basis, with an 11% sequential increase over Q1 FY27. Hero MotoCorp delivered strong performances across all segments, including premium motorcycles, scooters, electric mobility, global business, and commuter bikes. Scooters, in particular, emerged as a key growth driver, supported by both internal combustion engine (ICE) and VIDA electric models.
Why did the profit after tax miss analyst estimates?
Despite the growth in revenue and EBITDA, analysts noted that Hero MotoCorp’s PAT missed estimates by about 4%. This shortfall was mainly due to lower financial income. While EBITDA growth aligned with expectations, the reduced financial income impacted net profit results.
What are the company’s future investment plans?
Hero MotoCorp announced plans to invest up to ₹300 crore in its wholly owned subsidiary, HMCL Netherlands B.V. This investment will be made in one or more tranches and will support further investments in its subsidiaries HMCL Colombia S.A.S. and Hero MotoCorp Do Brasil Ltda, expanding its global footprint.
What did the CEO say about the quarter’s performance?
Harshavardhan Chitale, CEO of Hero MotoCorp, highlighted the strong performance across segments, especially the growth in scooters and electric mobility. He emphasized the company’s ability to meet evolving customer needs and the resilience of the 100cc motorcycle segment. Chitale stated that the company aims to sustain momentum, drive profitable growth, and build a diversified, future-ready business.
How did the stock market react to the earnings report?
Following the earnings announcement, Hero MotoCorp shares traded at ₹5,197 on the National Stock Exchange, down 2.36% as of 11:54 AM on October 29, 2026. The company’s market capitalization stood at ₹1.04 lakh crore on the same day.
