Hero MotoCorp stock posts revenue beat as Q2 margin slips

Hero MotoCorp reported a mixed second quarter on October 28, 2026, with revenue above market expectations but standalone profit below forecast. CNBC TV18 said revenue from operations rose 21.1 percent year over year to 14,687 crore rupees, exceeding its poll estimate of 14,573 crore rupees.

Standalone net profit increased 4.5 percent to 1,456 crore rupees, but missed the 1,531 crore rupee estimate. EBITDA rose 7.9 percent to 1,967 crore rupees, while the EBITDA margin narrowed to 13.4 percent from 15.0 percent a year earlier as commodity costs weighed on profitability. Cost savings and operating leverage partly offset the pressure.

Scooters Strengthen The Product Mix

Hero MotoCorp sold 1.868 million motorcycles and scooters during the July-September quarter, up 10 percent from a year earlier. The scooter portfolio grew 47 percent to 240,000 units, while the company's internal-combustion-engine 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 units a year earlier. VIDA's electric two-wheeler market share stood at 11 percent in the first half of fiscal 2027, up from 9.3 percent in the comparable period.

What Investors Should Watch Next

The margin trend is the key financial issue after the quarter. Revenue growth outpaced volume growth, but the lower margin leaves earnings more exposed to commodity inflation and the cost of scaling electric mobility.

On a consolidated basis, revenue increased 23 percent to 14,971 crore rupees and profit after tax rose 41 percent to 1,861 crore rupees. The result included a 397 crore rupee gain related to the equity consolidation of an associate, making the standalone operating trend more relevant for assessing underlying profitability.

Market conditions for Indian two-wheeler manufacturers can be followed in Current market reports.

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