Hero MotoCorp Ltd (NSE: HEROMOTOCO) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Umang Khurana — Head Investor Relations and Risk
V. S. Kasbekar — Chief Executive Officer
Harshavardhan Chitale — Chief Executive Officer
Vivek Anand — Chief Financial Officer
Kausalya Nandakumar — Chief Business Officer
Ashutosh Varma — Chief Business Officer
Analysts:
Mumuksh Mandlesha — Analyst
Gunjan Prithyani — Analyst
Chandramouli Muthiah — Analyst
Amyn Pirani — Analyst
Kumar Rakesh — Analyst
Kapil Singh — Analyst
Mukesh Saraf — Analyst
Arvind Sharm — Analyst
Yash Agarwal — Analyst
Raghunandhan — Analyst
Presentation:
operator
Sa. Foreign. Ladies and gentlemen, good day and welcome to the Q3FY26 post results conference call of Hero Motor Corp. Ltd. Hosted by Anandrati Share and Stock Brokers Limited. As a reminder all participants line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand over the call to Mr. Mumukhsh Mandlesa from Anadrati Shares and Stockbrokers Limited. Thank you.
And over to you sir.
Mumuksh Mandlesha — Analyst
Yeah. Thank you Paree. Good morning everyone. On behalf of Anirati Shares and Stockbrokers I welcome you all to the Q3 FY26 post result conference call of Hero Motocorp. I also. I also welcome the senior management of Hero Motocorp to this call. Thank you for giving us the opportunity to host this conference call. Now I hand over to Mr. Umang Khurana head Investor Relation and Risk to take it forward. Over to you ma’. Am.
Umang Khurana — Head Investor Relations and Risk
Thank you Mamuksh. Thank you Pari. Hello everyone and welcome to the call. With us on the call Today we have Mr. V S Kasbekar, Executive Director and Chief Technology Officer. Mr. Harshwar Dhan Chitthale, Chief Executive Officer. Mr. Vivekanand the Chief Financial Officer Ashutosh Verma who is the India Business Unit Chief Business Officer and Kausalya Nandakumar, the EV Business Chief Business Officer. We will begin the call as usual with opening comments from Mr. Kajbekar and then Vivek. Thereafter we’ll open the floor and take questions. Pari, we could first begin with Mr. Kazbekar and take it from there.
V. S. Kasbekar — Chief Executive Officer
Namaste. And a very warm welcome to everyone joining us for Hero Motocorp’s earnings call for the third quarter and nine months for fiscal 26. I would like to begin by wishing all of you a very happy and prosperous new 2026. One good news begets another with pride and humility. I am happy to share that Hero Motor Corp. Is the world’s largest motorcycle and scooter manufacturing for the 25th consecutive year with dispatches of 6.1 million in calendar year 2025. Through this medium I would like to express our sincere gratitude to our customers, business partners, employees and all stakeholders for their continued trust and support through the years coming to the quarter.
In the broader economic environment and the two wheeler industry. The 2026 began with a heightened uncertainty shaped by persistent geopolitical tensions, volatility in commodity prices and shifting trade policies across major economies. Against this background, the Indian economy stands out as a bright spot and fastest, largest growing economy for 26. The RBI projects the GDP growth at 7.3%, underpinned by the government initiatives to boost domestic consumption through GST rate coupled with lower inflation. The Economic Survey 2025, 26 also project GDP close to 7% for 27, marking the fourth consecutive year of healthy growth. In line with the macroeconomic momentum, the two wheeler industry has witnessed volumes rising following the GST rate reduction in September.
Post festive demand continues to stay strong with January 26th retails growing at 21% year on year. We expect this positive demand trend to continue in the coming months. Turning to Hero Motor Corp’s performance, our recent launches across the segments have received encouraging customer response supported by focused marketing initiatives and Vivek will elaborate further on the contribution from these new products in his remarks. Before I conclude, I would like to thank our executive chairman Dr. Munjal for the opportunity to serve in this role alongside the competent leadership at Hero. In my role as Executive Director of the Board, I will focus on key initiatives of the management.
With that I would like to hand over to our CEO Harshva Dhan Chitle. As you would be knowing, Harsh brings with him three decades of leadership experience across reputed organization including Signify HCL InfoSystems, Honeywell Automation and Tata Group, my earlier company. We look forward to this leadership journey at Hero Motor Corp. Welcome aboard Harish and over to you.
Harshavardhan Chitale — Chief Executive Officer
Thank you Vikram Good morning everyone. Thank you for joining us today and I would also like to express my best wishes to all of you for a prosperous and fulfilling new year. I’ll begin by expressing my sincere gratitude to our executive chairman Dr. Munjal for imposing trust in me to lead this institution with such a rich legacy. Legacy of leading two wheeler industry not for one year, not for 10 years, but for 25 years. I would also like to thank Vikram for his invaluable leadership and steering this ship during this transition and ensuring that we remain focused on our shared long term vision.
I joined exactly one month back and in this one month I have traveled extensively and now met with broad spectrum of stakeholders, dealers, suppliers, partners and of course our Hero Motocorp team. These interactions have given me very good insight into what makes us the leader. It is the trust and unmatched relationships built across the entire value chain is what makes us the leader and this is something that is very difficult to replicate for any company in my over three decades of professional life across three continents, I have not seen this level of trust and relationship relationships built across the value chain.
And it is this trust and relationships that’s going to stand us in good state as we charter our next growth journey. Other thing that really stands out is our ability to make bold strategic moves when needed, as this company demonstrated through investments in associate companies like Ather and Euler Motors. And it is this ability to make these bold steps will also help us stand in good stead as we charter the growth journey. While we take pride as a team in our volume leadership at Hero Motocarp, we are all acutely aware of the opportunities that exist in some of the other categories which are growing faster and where we are relatively underrepresented.
Hence we see a big headroom for growth and market share expansion in categories like scooters, in premium motorcycles, in global markets, in EV and also above all parts and accessories business. Because we are a company that has the biggest park size in the market, number of vehicles that are out there, we have the largest share of those vehicles that are on Indian roads today. Hence each of these five are going to be big of growth. And this is where as a team we are focused on accelerating and gaining share. In my last 30 days I’ve observed that as a team we have detailed action plans on each of these five growth pillars.
And what’s heartening to see is that these action plans are not just on paper, but we are already seeing early results out of each of them. And Vivek will share with you how on each of these growth areas we are actually getting results and gaining share. As I look forward to the next few years of our journey, we will focus on executing and accelerating our growth ambitions. We will also focus on ensuring that our supply chain is flexible, robust and resilient. We’ve all seen some of the disruption that as an industry we had to face due to various component crisis and geopolitical issues.
And those issues are not over. There’ll be many more that will come along the way. As a company we have navigated this very well, but we need to be always prepared and make sure we are agile and have a robust supply chain. So that will remain our focus as well. Third, we are going to remain razor sharp focused on customer centricity both in pre sales, post sales as well as the experience that our customer will have with our products. And finally, none of this will happen without having an engaged and passionate team of Asali heroes.
The true heroes which are my team at Hero Motocorp So we are also going to stay focused on this and with that I am very confident that we will be able to make most out of these growth pillars and I look forward to having a constructive conversation with all of you as I continue to learn and grow in this role. Vivek, why don’t you now take us through the question?
Vivek Anand — Chief Financial Officer
Yeah. Thank you Harsh. Good morning and thank you all for joining the call and wish you all a very very Happy New Year. 2026 I’m pleased to report strong financial performance for Hero Motor Corp. For the third quarter and nine months of financial year 26, the company recorded its highest ever quarterly revenue of Rs. 12,328 crores reflecting year on year growth of 21%. EBITDA stood at Rs. 18. 10 crores growth of 23% and reported PAT of 1349 crores growth of 12% year on year. However, normalized PAT stood at 1489 crores growth of 20% year on year.
During the quarter the company has taken cognizance of the new Labor Code and has made provision of rupees 119 crores which is reported as an exceptional item. Moving on to the 9 months financial year 26 results, the revenue amounted to Rs. 34,034 crores year on year growth of 10% EBITDA at 5015 crores growth of 13% and PAT of 3867 crores year on year growth of ten percent. ICE business EBITDA margin expanded by 100bps year on year to 17% driven by pricing, leap savings and operating leverage during the quarter. After taking into account the investments behind EV business approximately 208 crores, the overall EBITDA margins improved 20 basis points to 14.7%.
The average selling price increased 4.2% year on year and 1.3% quarter on quarter driven by higher ASP across product segments. The company reported highest quarterly revenue from parts, accessories and merchandise business at rupees 16.73crores which is a growth of 8% year on year. Our continued focus on cash management resulted in delivering strong cash from operation operations, strengthening our financial performance. Operating cash generated in nine months stands at Rupees 7045 crores. Now moving to the key business highlights for the quarter. As Vikram Ji mentioned earlier, one of the key positives for us has been the strong customer acceptance of our new launches across priority segments supported by high impact marketing campaigns for the HF Deluxe Pro, Splendor, GlamourX, Destiny 125 beta VX2, all of which have witnessed strong customer demand.
Starting with the entry segment, this marks the fourth consecutive quarter of market share expansion led by the HF Deluxe Pro which accounted for 20% of HF retail volumes in January 26th. In the Deluxe 100cc category, our focus continues to be on reinforcing our leadership position with Splendor. During the quarter we achieved a market share of 91%, the highest level since financial year 18. In the Deluxe 125cc segment, we are witnessing market share gain driven by both Glamourx and Extreme 125R with the dual channel variants. The Glamourx campaign launched in January 26 helped in retail growth of 70% year on year and the Glamour Portfolio market share is now at its highest level in the last eight quarters.
For Extreme 125R, the dual channel variant accounted for more than 35% of retail volumes in January 26th. Moving to ICE Scooter segment, our market share has increased to close to 7% supported by new launches in Destiny and Zoom Portfolio which contribute now to greater than 50% of our scooter volumes. In the Premium category, we continue to elevate customer experience through the scale up of Premia stores. We now have 106 premia stores by the end of December 25, covering more than 50% of premium industry footprint. In the EV portfolio, market share for Vida expanded by 6% year on year to 10.8% in quarter three financial year 26 led by the recently introduced Vida VX2 portfolio.
ASP and unit economics improved further during the quarter resulting in investment of 209 crores versus 255 crores in the previous quarter. We now hold over 20% share in 28 towns, 10% in 79 towns and we are among the top two players in 37 towns, a clear testament to the growing strength of our Veda brand. Our global business volumes grew by 41% year on year and market share of 7.5% was up 100 basis points. Year on year we continue to gain market share across key markets with the premium portfolio contributing 40% of total global volumes. I am also happy to share that Hero Motor Corp.
Was recognized as an ESG leader amongst automobile companies by NSE Sustainability Rating and Analytics Ltd. Moving forward, our journey of investment behind growth will continue. We remain consistent in our commitment towards investing in premium scooters, EV Portfolio, Global business and to improve customer service in store. With Hero 2.0 and Premia, we remain confident about the growth prospects of the two wheeler industry and expect the industry to grow by double digit during the current quarter. The current demand trend is broad based across our portfolio and with new product launches supported by investment behind brand building, we expect to grow ahead of the industry.
Thank you. On this note, let me open the floor for Q and A. Over to you Mang Par. We can begin with the Q and A now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press start and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, in order to ensure that management is able to address questions from the participants in this conference, please restrict your question to two per participants. Should you have a follow up question, please rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Gunjan from Bank of America. Please go ahead.
Gunjan Prithyani
Yeah, hi, thanks for taking my questions and best wishes to Mr. Harshvardhan for the new role. We hope to hear from you as you settle down. My first question is to Ashutosh. I think Ashutosh just trying to understand, you know, get more insights on what you’ve seen on ground in terms of the growth between urban, rural, maybe a little bit more color on entry segment, how we are seeing that and maybe just taking this a little bit further. We did see a lot of seesaw in volumes, right? I mean October, November were great. December saw some tapering off.
Just give us some sense. How do we think about directionally growth, this volatility from one month to another, some color on those point.
Harshavardhan Chitale
Hi Gunjan, how are you? Hope you’re doing well. Nice to hear from you. So overall from a growth perspective, if you would see the rural versus urban clearly the GST has given the market a big unlock. Both the segments are growing, both the regions, I mean areas are growing very strongly. Clearly urban has more things going their way with income tax coming in and the benefits of income tax coming in and that started accruing. We’ve seen that moving a little faster than the rural though in rural we saw in the festive them peaking the peak.
I mean the kind of response that we saw in from the rural markets coming in, it was far better than what was expected. We also expect that as we see the wedding season unfolding from February onwards, some early festives that set in from March, we expect quarter four also to be strong the later Part of quarter four also to be very strong from a rural perspective. I mean you specifically mentioned about the volatility that we saw in quarter four. I mean I would, sorry, quarter three I would say, I mean this time the festives were a little early as compared to last year.
So that has to be taken into account. But overall from a quarter three perspective the growth has been very robust and we continue to see that kind of momentum moving into quarter four as well. I mean January also was a high double digit growth for the industry as for us and we expect this momentum to come continue as we move into quarter four, deeper into quarter four.
Gunjan Prithyani
Any thoughts on how we think about F27 now? I mean quarter four of course, you know you did guide but anything on F27 growth outlook?
Vivek Anand
Yeah. Hi Gunjan, Vivek here. Yeah, I think if you, yeah if I, if I as building on what Ashutosh said, I think quarter three and quarter four we are seeing a good momentum. I think the industry overall, as you know has been growing double digit in the last since I’ll say October. We expect the same trend to really continue as we get into the next year. And however. Right. As we get into second half of next year because of high base, we see some moderation in growth. So overall the industry for the next financial year is likely to grow in high single digits.
Gunjan Prithyani
Got it. And my second question Vivek to you is on the commodity side, we’ve clearly seen inflation in some of these metals. Right. Can you help us just understand what was the commodity hit that sort of reflected in quarter three? Any color on how much more to go in quarter four? And if you guys have taken any pricing action or mitigation to these commodity headwinds.
Vivek Anand
Yeah Gunjan, so you are right. We are seeing inflationary trends. We’ve seen the prices of aluminium, precious metals going up starting last quarter. We’ve also seen some forex impact again starting last quarter. So your first part of the question was how much is the impact coming from the commodity in the previous quarter was approximately 40 to 50 basis points. That’s what I’ll say. Are we seeing similar trend during the current quarter? Yes, the answer is yes, we are seeing the prices continue to rise during the current quarter as well in the start of the year we’ve already taken one round of price increase to mitigate the impact, Gunjan.
Right. And I’ll say we are monitoring the situation very closely and are taking proactive steps to ensure financial resilience. Right, I will. I also would like to add that the market conditions are strong and we’ll be taking adequate price increase if required during the quarter.
Gunjan Prithyani
And how much was the price hike? And I’ll just join back the queue after that.
Vivek Anand
Yeah, the price hike we’d taken in January was 300 rupees is what we taken from 1st of January per vehicle. 300 per week.
Gunjan Prithyani
Got it. Thank you so much. I’ll join back with you.
operator
Thank you. The next question is from the line of Chandra Molly from Goldman Sachs. Please go ahead.
Chandramouli Muthiah
Hi, good morning and thank you for doing my questions. Welcome on board Harshwar Dan and best wishes to you in your leadership journey at Hero. I have three questions. First one is just around the electric two wheeler business. So it looks like we’ve been closing the gap in terms of registrations growth versus the industry over the past few quarters. But electric two wheelers there’s still some amount of under indexing. I just want to understand. Our peers have launched sub 1 lakh rupee electric two wheeler products and when we can expect that from Hero? That’s the first question.
And then I have follow up on Channel stock and the Destiny product which I can ask later.
Kausalya Nandakumar
Yeah, hi, Chandramoli Kausalya here. Very good morning and wishing you a happy new year from all of us. Thank you for your comments. We are also buoyant by the impact that the EV portfolio is having at Vida. We do see strong customer demand for the newly launched VX2 series which we launched in the middle of the second quarter. We are quite happy with the response that we are getting. We have a range of variants offered in the product portfolio, some of which are at a competitive price point which is in the mass segment below 1 lakh.
And we are catering to different customer needs across the spectrum in terms of feature stacking and value laddering. So we do have a portfolio. We also launched an innovative product which was the battery as a service offering. This improved affordability of consumers who are looking to own an EV and help them to kind of bridge that barrier between affordability and actual desire to own a high tech product. So between the combination of having a set of variants in the sub 1 lakh bracket as well as having battery as a service as a new offering to consumers who are looking to own an av, we have been able to give consumers are a wide range of choice.
So we do have a portfolio and we look to keep taking in consumer inputs and insights in order to drive our portfolio expansion as well.
Chandramouli Muthiah
Got it. That’s helpful. Second question is just around channel stock. So I think with the volatility around wholesales couple of months last calendar year, it looks like the channel stock at Hero is still little lower. So just want to get clarity on where we are right now on channel stock. And as you head into the marriage season over the next few months, just want to understand where you where you’d look to take that.
Harshavardhan Chitale
Chandra, if I got a question right, you wanted to know as to where our channel stocks are and how it’s been moving. Right?
Chandramouli Muthiah
Correct.
Vivek Anand
Yeah. So I mean we’ve seen a very strong retail momentum this year. I mean channel stocks, if you look at the movement, and that’s for everyone to see the difference between wholesale numbers and what is appearing on Wahan, you would see that we have significantly reduced our channel inventory this year and we are very judicious in terms of planning. So we know that as we move forward into quarter four and next year quarter one, which we expect to be extremely strong, we will adequately be planning the channel inventory.
Chandramouli Muthiah
All right, that’s helpful. And just lastly on the Destiny, I think it’s gotten off to a pretty decent start after the refresh. We’ve had episodes in the past six, seven years where you’ve had refreshes of the scooter portfolio. You’ve had new launches on the Zoom portfolio. And after this initial wave of euphoria, sometimes those numbers start to moderate a little bit. So this time around with I think this renewed push on the Destiny, is there anything different and what are you planning to do to make sure you sustain these numbers and potentially grow off that base?
Vivek Anand
So I mean it’s a great product and we’ve seen the consumer response across markets. I mean our portfolio industry since we have launched the product continues to swell. I mean more recently we have launched another variant which is Destiny 110 that augments the entire portfolio from a feature perspective. It has 12 inch wheels, a very large floorboard, it’s excellent in terms of mileage. These are the things that are being appreciated by customers a lot more. We have seen very strong response coming in from our west and south markets where we have over indexed. There are of actions that we are doing in terms of our campaigns also being hugely appreciated.
So we expect this momentum to continue. Of course we are also aided by the overall traction that the scooter industry is facing. But we are very confident that we will continue to outpace the industry growth.
Chandramouli Muthiah
All right, that’s helpful. Thank you very much and all the best.
operator
Thank you. The next question is from the line of Amien Pirani from JP Morgan Please go ahead.
Amyn Pirani
Yes, hi, good morning. Thanks for the opportunity and welcome to Mr. Chitle. Hope to hear more from you in the coming weeks and months. My first question is actually on a topic which doesn’t get discussed very often is your exports. Now obviously from a very low base. This number has been growing at a very sharp clip over the past several quarters and it starting to become quite significant. So any color you can give as to what geographies are emerging as important for you, Any broad mix, any specific regions or countries that are doing well for you.
And how should we think about this over the next say 1 to 2 years?
Harshavardhan Chitale
Thank you Amin. Thank you for your best wishes. This is Harsh Vardhan. So as you know we are very big in Bangladesh. We are in fact the market leader. Despite all the geopolitical issues that the country has faced. We continue to do well and gain share and we do see good momentum there. We have also done very well in Colombia. Massive growth and big share expansion and still there is a big headroom for growth between us and number one there, there is still 700 basis points available. So I think that’s also a big headroom for growth that we are working on.
We have last quarter introduced products in Europe. We have also opened up new Latin American countries and we have also opened up new dealerships and partnerships in both West Africa and in North Africa. So Africa, Latin America, new expansion in Europe all continue to be opportunities for us. We’ve also started on a low base, our presence now in Philippines. So as you rightly said, global market is a big area of focus and while we are expanding rapidly, there is still a big headroom for growth and we are focused on that.
Vivek Anand
Yeah, thanks Harsh and Amin. Let me come in. I would like to add a supplement to what Harsh said. So I think you are right. I think YTD growth this year has been almost 50% for global business and really what is really driving this growth? The couple of things I certainly want to call out. I think first of all it’s the 8020 strategy of focusing on top 10 markets which is really doing well. Some of them Harsh talked about. I think in three of the top 10 markets we now have share more than 10% and growing fast.
Our new products which we’ve launched across the markets are doing very well. Some of them hunc 125, hunk 160, 250, zoom 110. They continue to do well and have got very good response from the market. I’m also happy to say that the premium product contribution in the global market stands at 40% of global business volumes. Our products in the global markets have now been designed suiting the specific market conditions and customer requirements. So that’s really driving the offtakes in those respects markets. And last but not the least, we continue to invest in customer service in those markets.
I think all these actions combined are seeing a strong growth not only this year, but in years to come.
Amyn Pirani
Thanks. Thanks a lot for the color. This is very helpful. And Vivek, since I have you right now, I just want to understand this interplay of commodity and pricing because there is a worry within the investor group for autos in general that since GST has been a key driver of growth, if companies have to increase prices to now offset commodity, would that be a dampener? So my question here really is A, do you agree with that worry and B, given that growth is strong, would it be fair to say that operating leverage itself can take care of a lot of these commodity challenges and the price hikes required may not be substantial? Just wanted to help get your help on understanding that.
Vivek Anand
Yeah, no, I mean, I think. Good question. I’ll say this GST rate reduction has actually have taken the prices back to what it was three years back. Right. So this 10% price reduction is a significant price reduction we are seeing across product segments. Right. So starting last quarter, yes, we’ve started to see some headwinds in the commodities space. Briefly talked about that. It’s not a cross. It’s largely coming from aluminium, precious metals and currency. Now the way we really look at it is that we have taken a price increase in January. So price increase is just not only a lever to really manage any impact of commodity.
We continue to look at our cost saving programs, which we call it leap savings. We continue to improve our mix and of course the operating leverage, which is the big driver we have in terms of mitigating any currency and commodity impact. So we continue to really work on all of that. But specifically coming to the pricing, I think if I also look at today, based on the growth trends we are seeing, we are seeing market conditions are strong and I don’t see any big concern in terms of really taking judicious price increase. Right. And if required, I think we’ve seen across industry, I think everybody has been really doing that and if required, I think that’s something I don’t see impacting our business going forward.
Amyn Pirani
That’s good to know. If I can slip in one more question. Just going back to the comment on the 125cc traction. Now specifically on extreme 125R, you know, because we don’t get to see the model wide retail, we can only comment on wholesale. Then there is a bit of lead and lag because of this GST change. It seems that the extreme 125R is having growth in spurts, but then coming down as well. And when we speak to dealers there’s also a sense that the product is, you know, popular but there is not enough being done in terms of supplies.
So just want to get a sense as to how should we think about the extreme 125R and you know, where could the numbers go, you know, directionally over the next few quarters.
Ashutosh Varma
So I mean, hi Ashutosh here, I’ll take that question. So as far as extreme125R is concerned, the performance of that has really been consistent since the time we have launched it. More recently we’ve introduced. The dual channel Dual channel ABS that has come in and it has received an amazing response. We have just started with it and maybe that’s why you would hear some occasional feedback about some places where the inventory has probably not reached. But as we scale it up, moving into quarter four, you would see, I mean that doing far, far better than what you would see from our current portfolio.
Already the contribution, as Vivek said, has gone up to almost one third of our total extreme portfolio and we expect that to move forward. This is a segment which the sporty subsegment that last year on depending developed post Covid when we saw a lot of customers downgrading from 150 to 125cc and hence a lot of features that 150cc customers were largely looking at were in this category and which is why we want to continue to add features in this category with ride modes with ABS and want to keep it exciting. So we’re confident and as I said, the performance has been consistent.
It only get better as we move forward with this new variant.
Gunjan Prithyani
Great, thanks for that. All the best. And I’ll come back in the queue.
operator
Thank you. The next question is from the line of Kumar Rakesh from BNP Paribas. Please go ahead.
Kumar Rakesh
Hi, good morning and thank you for taking my question. My first question was around your Columbia subsidiary. So last year we had taken impairment loss for that subsidiary. How is that business progressing now and any investment if there is needed for that?
Vivek Anand
Yeah, so Kumar Vivek here. I think the businesses this year has been one of the best years, I’ll say For the Columbia business, the volumes have grown more than 200% in that business we’ve improved our market share from 5% to 9%. And I am also happy to say the business is become now profitable. So the first nine months we made a PAT of 5 million. So overall if I really look at the health of the business, I think the volumes are growing by 200% market share, we’ve almost doubled and the business has become profitable.
Kumar Rakesh
That’s very good to hear. My second question was around financing. So Hero Fincorp losses have been increasing over the last three quarters. Do you see that becoming a bottleneck for the availability of financing for Hero Motocorp? I’m asking this because our share of financing of total two wheeler sales has been trending down for the last three quarters.
Vivek Anand
So the simple answer is no, I don’t see that as any concern. I think clearly this quarter again the financing contribution coming from Euro finance is almost 20% 5% which has actually improved quarter on quarter. Right. So that’s one on the losses. Yes, I’ll say that HFCL has strong plans to increase the secured lending. They’ve already moved it from 61 to 68% and the plan is to really take it to mid-70s next year. There are plans to bring down the credit cost and there is clear action plan to improve the collection efficiency. So hopefully we’ll see them getting into green next year.
Kumar Rakesh
And once that entity gets listed, you see any change in the relationship of how you currently have access to financing through that entity or the criteria that currently are being used to access the customers?
Vivek Anand
I don’t see any change. Right. So in any of the criteria I only see it becoming more strengthening. So possibly their share of business with HMCL should only grow. Post listing.
Kumar Rakesh
Thanks a lot. Just one clarification. The data which you share in key highlights the leap saving 120 basis point in this quarter you have spoken about. That’s a very high number. But as an analyst, how should I be looking at that number? Because quarter on quarter the margin has contracted. So this seems like 150 basis points. Sort of a headwind is there against all the leap saving which was there. So if you could share the entire margin page or how that data is getting calculated and what to do, how to best use that or analyze that data.
Vivek Anand
We’ll take it offline from. We’ll take it offline. Kumar.
Kumar Rakesh
Sure. Thanks a lot.
Amyn Pirani
Yeah.
operator
Thank you. The next question is from the line of Kapil Singh from Nomura. Please go ahead.
Kapil Singh
Yeah, hi, good morning. Sir and Mr. Chitle, best wishes for the role. My question is to you in terms of strategy going forward, how would you like to operate? What I’m trying to ask is are you looking to gain market share across segments or other specific segments where you will be much more focused? From a margin perspective, what are your views? Do you feel that margin should rise further from current levels or the zone in which we are operating are fine. So just some thoughts on the strategy would be helpful.
Harshavardhan Chitale
Thanks Kapil. Thank you for your best wishes. As I mentioned briefly in my opening remarks, we are very clear on as a company on where is the headroom for growth and if I were to look at different categories between entry, premium, scooters, EV parts and exports. If you look at these six other than premium, I think we have gained share and significant share actually in each of the other categories in Q3 itself. Our challenge is that in some of the categories that are higher growth categories right now, like scooters, EV exports, as some of you on the call highlighted, while we are doing well, we are still underrepresented and that’s also opportunity for us and that’s exactly where we are going to focus on how do we outgrow the market in these categories where we are relatively underrepresented and are now seeing great momentum.
So that’s strategy number one. Second, we also spoke about how we are rapidly now expanding in global markets, almost 50% growth Vivek spoke of and I think still there is a big headroom there. So we are expanding, building capacities and channels into various countries there. That’s number two. Third, which is I think we are uniquely positioned in terms of our vehicle park size in terms of vehicles on the road. We have the highest number of vehicles on the road having been the leader for over two decades in the country. And that’s a big parts business opportunity.
While it has grown 8% last quarter, I think still there is a big headroom for growth and I think that’s something that’s extremely profit accretive as you know. So it also creates us, gives us the watches needed to invest in other growth areas. So I think these higher growth categories, exports, part business is where we are going to remain focused and an enabler for that is going to be getting our supply chain and capacities bolstered. In fact, as one of the earlier speaker or the question that we had was around, hey, is your extreme 125R facing supply challenges? I mean some of these are happy challenges to have because if you have a common platform between Exports which is growing at 51% and then domestically also extreme is doing well.
You have those supply bottlenecks to resolve. So team is identifying each of these capacity enhancements needed by modern and we are also getting that quickly actioned. Did I answer your question Kathil?
Kapil Singh
Yes sir. Thanks. Just your thoughts on the margins. Also if you can add.
Harshavardhan Chitale
On the margins, I think with the growth we will get overhead dilution and we will see expansion there. And as Vivek answered earlier, we continue to look at the equation between commodity cost, commodity and effects impact versus pricing and the net impact is actually a fraction of the benefit that the market saw out of gst. So we don’t see the price increases to mitigate some of the cost increases. Net of the savings that we get is material to impact any demand. So we will hold the margin.
Kapil Singh
And second question, just a little breakdown in the growth outlook that we have given between the different segments following the GST cart. Where should we expect higher growth? Do you expect entry and executive segments to also grow? You know, when we are talking of high single digit growth, how should we break it down between the different segments? And if you have any observations on why scooter growth has been much higher than the motorcycle growth, in fact we have crossed the pre Covid level over there, but not in case of motorcycles. Any thoughts on why the market is evolving this way and will it continue to be like this?
Harshavardhan Chitale
So you know it’s grazing into crystal ball. But as the industry looks into it, if you look at the macro trends in the country, urbanization, cities getting congested and more and more women also coming into workforce, gig, economy growing, I mean you start adding all of that together and whole of those macro trends are favoring scooter expansion. So if these macro trends continue, which as an industry everybody is expecting it to continue, I think scooters may have higher growth rate going forward versus motorcycles as well. And hence our focus that hey, we need to really grow much, much faster here and be a bigger player in this category.
Vivek Anand
Yes. And just to add, I think if I look at the trends in the last four, five months, I think we are seeing a broad based growth. We are seeing growth across all the segments. Yes, some segments are growing faster than the other. Right. I think we expect the same trend to continue as we get into next year.
Kapil Singh
And even on motorcycles, you know what’s heartening to see is across segments we see growth. For example, after many years we also saw very strong growth in entry and core. I think it was, I think the impact of GST and that tailwind is continuing. And as the income levels go up we also see the premium category continuing to grow. So actually there is a tailwind for different reasons across different categories.
Vivek Anand
And also I think we are seeing rural coming back. So that will have a direct impact on the pace of growth in the entry and deluxe segment. We are seeing some very strong growth in the EV segment. Right. So as I said, it’s broad based. Right. So growth is across all segments. Some segments are likely to grow faster as Harsh said. Scooters, both ice EV and premium VR. We expect a faster growth than the rest of the categories. But overall growth across all segments.
Kapil Singh
Thank you sir and all the best.
operator
Thank you. The next question is from the line of Mukesh Garaf from Evander Spark. Please go ahead.
Mukesh Saraf
Good morning and thank you for the opportunity. My first question is with regards to your supplier base. Hearing from the ecosystem in general. Off late that Hero is looking at some kind of a rejig or some kind of restructuring of its vendor base. Firebase. Just want to understand is there anything that you would like to kind of highlight here or is this just a, you know, kind of a process that you are anyways ongoing kind of a process. So some comments that would help.
Harshavardhan Chitale
So there is nothing specific, you know, there could be one or two suppliers who might have commented. So we don’t know where the comment comes from. But in general as I mentioned in my earlier comments, we have one of the best supplier relationships and in fact as a process we do want to increasingly work closer with them. Co development, early involvement in development and also in capacity planning. As we are growing now seeing rapid growth in some of these high growth categories, be it EV or export portfolio scooter.
Mukesh Saraf
Right.
Harshavardhan Chitale
There is a need to also do a lot of capacity augmentation even at a supplier end and we are working very closely with them. So there is no specific rumbling or issue that we’ve come across.
Mukesh Saraf
Got it, got it. Understood. And just an update on the ABS regulation. Anything that the ministry is now kind of given you any revised possible timelines on this.
Harshavardhan Chitale
So you know as an industry and as company, I think we are all very committed to road safety. In fact for us we take pride in saying that our motorcycles and scooters are the safest. So as an industry, Sam has been working very closely with the government on various options to make different vehicles safer and we continue to engage. There are different options being discussed and we are awaiting further guidelines if any when they come. But we will be ready to fulfill those guidelines whichever Guidelines come.
Harshavardhan Chitale
Right. Right. But there’s no indication of a possible timeline as yet.
Harshavardhan Chitale
No, there isn’t.
Mukesh Saraf
Right. And just lastly again, I think one of our EV models is approved under the pli. Any. Any further updates there on further new models getting added to that list?
Kausalya Nandakumar
Yeah, Mukesh, thanks for the question. Yes, we do have one model that was approved under PLI and we continue to thank the government for their support on the production linked incentive. There is a strong momentum within the beta team to build more models which meet the criteria and become eligible and you should see progress there as well. It is the commitment from our side to continue to focus on improving our domestic value addition across the portfolio.
Mukesh Saraf
Got that. Thanks a lot. I’ll get back.
operator
Thank you. The next question is from the line of Arvind Sharma from CT Grove. Please go ahead.
Arvind Sharm
Hi, good morning sir and thank you for taking my question. The first question would be if you could throw some light on your model pipeline, EVs and I’s, if not the actual models at least, what’s your strategy in terms of new nameplates and refreshes going forward?
Harshavardhan Chitale
Arvind, could you again repeat the question? The model pipeline for EVs is what your question is, sir.
Arvind Sharm
Both EVs are nice and if not the actual models, just your strategy on new nameplates as well as refreshes clash variants.
Kausalya Nandakumar
So. Hi Arvind, I’ll go first on the EV portfolio. You would be aware that in this year of F26, we launched our now flagship model of VX2 in the month of July and we also have been launching variants under this brand plate in F26 in order to improve the portfolio availability across range and feature comparative. We will continue to get insights into customer needs and you will be able to see that customer requirements being plugged into the portfolio going forward. We now have a family of product offerings under the Vida range, from the V2 to the VX2, catering to different customer needs.
So there are multiple variants that you have seen this year along with the flagship launch of VX2 too.
Vivek Anand
Arvind, I’ll just supplement from the ICE perspective. I mean, if you look at our launch over the last couple of years, we’ve had launches in almost every category. We’ve largely covered the entire white space that was covered in the industry. While there will be refreshes and upgrades going forward, but our task is here clearly cut out in terms of growing what we have just launched and which will be in investing and doing it.
Arvind Sharm
Thank you so much sir and MA’ Am for this second question is more a number question. If you could share your EV revenue and the losses. You know, have you shared the implied ICE margin? But if you could enumerate the EV revenue and the losses in the EV business.
Vivek Anand
Yeah, we can take it offline. But I, I covered that in my, in the, in my opening. Just give me a sec. Right. So yeah, this, this quarter our EBITDA investment was 208 crores for the quarter. Arvind, I’ll come back to you. We’ll take it off. Yeah, revenue also I can tell you quarter three revenue is 450 crores. Right. So yeah, we can certainly share more details offline.
Arvind Sharm
Sure sir. Thank you so much. That’s all from my side. Thanks again.
operator
Thank you. The next question is from the line of Yash Agarwal from Nirbalbank Securities. Please go ahead.
Yash Agarwal
Hi, good morning and thank you for the opportunity. The export growth has been really strong from last three quarters. I just wanted to understand was there any impact of increase in tariff rate in Mexico currently and going forward.
Harshavardhan Chitale
So Yash, there is no impact because we actually have a localization. So we have a benefit, you know in a way being relatively late entrant on export. We are not so globally integrated that you just ship full vehicle from one place. And our approach has been actually more local for local localization partnerships. So we do have that in place in Mexico. So we did not see an impact.
Yash Agarwal
And the second question is like what has been the response to our hero models in the Europe like hung440xpulse200 and what is the medium expectation for the Europe contribution to overall export sales?
Harshavardhan Chitale
It is just too soon. You know we just introduced last quarter, secondary sales have started in all of those models in all those countries. But it’s just too soon to give an indication.
Yash Agarwal
Yeah, that’s it. Thank you.
operator
Thank you. The next question is from the line of Raghunandan from Nuama Research. Please go ahead.
Raghunandhan
Strong results and wishing all the best to Mr. Harathan. Firstly to Ashutosh G on FY27. In which customer segments do you expect better traction? Are you seeing more demand on the first time buyer side? How do you see the trends on rural, urban? Any risks which you foresee for next year? Thank you.
Harshavardhan Chitale
Hi Raghu. Kind of touched on it on the previous answers. But let me just elaborate a little bit. Overall from an FY27 perspective we would see all segments responding well. We, we have seen good unlock in terms of demand over the last quarter. Continues in this quarter and there is no why it should not happen over the next year. Of course the first half of the year will be a little higher. Scooters of course are doing well. But as we see, I mean quarter one which is very heavy in terms of marriages and then up to festives we should see even motorcycles doing very well.
We have seen, I mean overall the rural segment doing well, good harvest that happened. In fact the winter crop should start manifesting from quarter one onwards and we expect this segment to do well as well.
Raghunandhan
And how are you seeing traction sir? From the first time buyers has there been an increase in the shares?
Vivek Anand
I missed that. So from a first time buyer perspective we have seen, I mean for example what we saw in January we had seen these customers inching from an average that we see of close to around 75% to close to around 80 odd percent. This again as as we were mentioning with the GST unlock, we have seen a lot of first time buyers coming into the category. This was one of the reasons why we saw such phenomenal response in the festive across the industry. And we expect that that will continue as we move forward into quarter four and quarter one as well.
Raghunandhan
Thank you for that sir. And secondly to Kaushalia Ma’, am, can you indicate for Veda sales when we do channel fix with dealers? Dealers believe that they could sell more if they get enough supplies. How do you see the potential? And can you talk about the plans of increasing capacity going ahead and factory as a service? What would be the contribution in sales as of now?
Kausalya Nandakumar
Yeah. Hi Raghunandan, thanks for the question. The VX2 success from consumer side has been quite resounding and we are very grateful for the confidence that we have now gained in the market. As you see for the last six odd months we have been consistently trending over the 10,000 mark and we continue to improve our ability to serve consumers and dealers alike. In due course of time they will be focused to kind of improve our ability to supply to the market. And in terms of battery as a service this was a great opportunity for consumers like I stated before to come in to the EV ownership life cycle with a higher affordability index.
So we do see a lot of our enquiries and interest coming in from the battery as a service even today. And that continues to buoyant the overall EV adoption cycle. In Veda we also have another advantage that we have removable batteries. This allows a large segment of consumers who don’t have necessarily access to a fixed parking and charging to also bring come into the overall funnel of EV ownership. So we do have both these strong levers and will continue to focus to improve adoption and penetration of ev. So that’s the focus that we have right now in the Veda team.
Raghunandhan
And when do you see the new capacity or capacity expansion coming up?
Kausalya Nandakumar
So we are looking at F27 as the year in which we would be able to see a market increase on this front.
Raghunandhan
Thank you very much. Best questions.
Harshavardhan Chitale
Thank you. That was the last question to close off strong growth on volumes as you saw substantial robust revenue growth of 21%. The PAT normalized grew at 20% as well. This was helped by our high ASP both on ICE and EV. Of course this comes in the 25th year of consecutive leadership. You’ve all seen the interim dividend getting announced. This was on the back of a strong festive season. Wahan has been improving. Quarterly retails were the highest ever in core. A lot of you pick that up. Rural Market 4th consecutive quarter of market share expansion market share at 57% which is up almost 4% in the core market as well which has outpaced the industry Deluxe market share.
Splendor continues to be leading the charge impetus behind marketing campaign. A whole lot of our market share campaigns. There is Glamour, there is Destiny, There is Splendor is what you’ve seen. The Deluxe 125 Glamour has gone on to increase the extreme 125R. There was one of those questions. The dual channel as that came in helped come up. In the meantime it slowed down on the extreme supplies as those came by as well. And that’s the growth that you’re seeing. So in 125 you’ll see both Extreme125R and Glamour X as well. Highest ever quarterly revenue of PAM that you saw in premium.
The expansion to 106 stores already which covers more than 50% of the market. Scooters are growing ahead of the industry both in the 100cc and the 125cc. Destiny is of keen interest as is Zoom EV leadership. Kausalya just finished her commentary. We launched with the Vida new models coming up. ASP and unit economics is improving there as well. Strong global business performance again outpacing the industry. A number of those. Finally on ESG we’ve been recognized again as the best in the industry successfully. We mapped initiatives against all 17 United Nations Sustainability Development goals. Thank you so much for coming in.
Happy to take your rest of the questions over the phone. Have a good day.
operator
Thank you.
Vivek Anand
Thank you.
operator
Thank you on behalf of Anandhati Shares and Stock Brokers Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.