Hero MotoCorp stock faces margin pressure after Q2 profit miss

Published on 11/01/2026 at 01:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Hero MotoCorp stock faces a mixed Q2 after revenue beat estimates but profit missed as commodity costs squeezed margins. VIDA and scooters gained ground.

What Hero MotoCorp's Results Signal

Revenue growth outpaced profit growth as commodity costs narrowed the EBITDA margin.
Scooters, entry-level motorcycles and VIDA electric mobility supported volume and market-share gains.
Hero MotoCorp retained its FY27 capital expenditure plan to expand production capacity.

Hero MotoCorp, INE158A01026, Illustration mit AI erstellt.

Hero MotoCorp reported mixed second-quarter results on Wednesday, October 28, 2026, as revenue growth exceeded the CNBC-TV18 poll while standalone profit fell short of expectations. The report points to strong demand for scooters and electric vehicles, but also highlights the pressure that commodity costs are placing on profitability. Read the CNBC TV18 report for the results details.

Revenue Growth Meets Margin Pressure

Standalone revenue from operations rose 21.1 percent year over year to 14,687 crore Indian rupees in the quarter ended September 2026. Standalone net profit increased 4.5 percent to 1,456 crore Indian rupees, below the poll estimate of 1,531 crore Indian rupees. EBITDA grew 7.9 percent to 1,967 crore Indian rupees, while the EBITDA margin narrowed to 13.4 percent from 15.0 percent a year earlier as commodity costs weighed on earnings.

The consolidated figures were stronger, with revenue up 23 percent to 14,971 crore Indian rupees and profit after tax up 41 percent to 1,861 crore Indian rupees. The consolidated result included a 397 crore Indian rupee gain from the equity consolidation of an associate after a capital raise, making the headline profit increase less representative of underlying operating momentum.

Scooters and VIDA Drive Volume

Hero MotoCorp sold 18.68 lakh motorcycles and scooters during the quarter, up 10 percent year over year. Scooter volume increased 47 percent to 2.40 lakh units, while internal-combustion scooter market share rose to 7.3 percent from 6.2 percent. VIDA retail sales reached nearly 67,000 units, compared with about 38,000 a year earlier, and its first-half market share increased to 11 percent from 9.3 percent.

Management also said the company expanded into Germany, its 54th international market, while exports faced operational headwinds. Hero MotoCorp reiterated its FY27 capital expenditure plan of 1,500 crore Indian rupees, aimed at lifting annual production capacity to 9.2 million units from 8.63 million units at the end of FY26.

Hero MotoCorp's Market Position

Hero MotoCorp makes motorcycles, scooters, electric scooters and related parts and services, with products spanning commuter, premium and electric mobility categories. The company is based in India and sells models including Splendor, Xtreme, Xpulse, Destini, Xoom, Harley-Davidson X440 and VIDA vehicles, according to its investor relations page. In a September industry snapshot from Autopunditz, Hero led dispatches ahead of Honda and TVS, while Bajaj Auto remained another major Indian rival.

Indian equity market coverage is available through the BSE Sensex market reports.

More company developments are available in more news and analyses on Hero MotoCorp stock.