Hero Motocorp posts record Q2 profit, revenue on global expansion, festive sales surge
The two-wheeler maker's performance was aided by sales volume expansion: 8% in the domestic market and 77% in international sales. Sales of its electric scooters surged 158% by volumes. Smaller rivals Bajaj Auto and TVS Motor had earlier reported strong results in the quarter.
New Delhi: Hero MotoCorp rode on strong domestic demand for its scooters and motorcycles—both petrol and electric—and an expansion of sales in overseas markets to post record quarterly earnings for the three months ended September.
India’s largest two-wheeler maker reported a 24% year-on-year jump in consolidated net profit to ₹1,321 crore, while revenue rose 16% to ₹12,458 crore, the highest for the company in a single quarter.
Its performance capped a strong second quarter for India’s top two-wheeler makers, with peers TVS Motor Co. and Bajaj Auto also reporting robust growth.
Hero Motocorp had reported earlier that its sales of motorcycles and scooters had increased a healthy 11% to 1.69 million units in the quarter, boosted by cuts in goods and services tax (GST) on entry level bikes as well as festive sentiment.
Within this, domestic sales clocked an 8% year-on-year rise to 1.58 million units in the quarter, while international sales, aided by expansion into various European markets, among others, surged 77% to 111,584 units.
The surge in sales was led by its products in three segments, entry, deluxe and scooters. Overall market gain was driven by HF Deluxe Pro in the entry segment and by Passion, Splendor and Glamor X in the 100cc-125cc deluxe segment.
Commenting on the results, Vivek Anand, the company’s chief financial officer, said GST relaxation helped in improving customer sentiment in the market, which boosted the company’s sales.
“In Q2FY’26, the auto industry returned to broad‐based growth, further supported by positive festive sentiment. Hero MotoCorp witnessed strong momentum, aided by the success of our new launches, expanding product portfolio, and customer‐centric marketing campaigns," Anand said in a media release after the results were announced.
Ebitda margin of the company expanded by 55 basis points to 15% during the quarter, led by growth in volumes. Ebitda refers to earnings before interest, tax, depreciation and amortization.
Hero Motocorp's shares fell 0.65% during day's trading hours as against 0.37% fall in Nifty Auto. The company's results were announced after market hours.
Also read: TVS continues to flag rare-earth magnet crisis, hopes GST reforms to boost H2 sales
International sales rising
At the onset of financial year 2026, Pawan Munjal, chairman of Hero MotoCorp, had outlined that the company's performance from the second quarter would see a boost from global markets.
“Hero MotoCorp [will] extend its presence into Germany, France, Spain, and the United Kingdom in the second quarter of FY 2025-26," Munjal had said in his letter to shareholders.
According to Hero's statement, the growth in international business was led by a surge in sales in Bangladesh, Nepal, Sri Lanka and Colombia.
“During this year’s festive season, starting with Onam on Aug 23, 2025 until Nov 12, 2025, the growth in ICE VAHAN registrations stood at 16.2% ahead of industry growth of 14.7% over the comparable period in the previous year," the statement added.
Electric surge
Vida, the company’s premier electric vehicle brand, also saw sales more than double as Hero continues to expand the line up of electric scooters in the country, targeting monthly sales of 25,000 within the next two years. According to retail sales data available from Federation of Automobile Dealers Associations, Hero MotoCorp’s electric vehicle sales increased 158% to 36,569 units for the quarter.
The company has also doubled down on its electric vehicle product lineup by revealing new product concepts of electric motorcycles such as Project VxZ and Ubex.
During the quarter, the company also announced the appointment of its new chief executive officer Harshavardhan Chitale, who will succeed Vikram Kasbekar from January 2026, the acting chief executive of the firm. The churn at the top came after then-CEO Niranjan Gupta left in April.
Also read: Bajaj Auto looks to rev up EV biz, KTM bouyed by Q2 profit, revenue surge
Peer comparison
The surge in top and bottomline of Hero Motocorp comes in a quarter when its legacy rivals Bajaj Auto and TVS Motor Company have also reported a strong surge in sales and profitability.
Bajaj Auto saw a 53% year-on-year jump in net profit to ₹2,122 crore for the September quarter, as revenue rose 20% to ₹16,310 crore, driven by strong international sales and rising demand for premium motorcycles above the 125cc range.
TVS Motor Co also announced a 26% year-on-year (y-o-y) jump in revenue to ₹14,051 crore. Net profit of Hosur-based TVS surged 42% to ₹833 crore.
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