The world\u2019s largest two-wheeler manufacturer achieved a 21% revenue increase driven by record festive sales and premium segment expansion. The Board approved a substantial interim dividend and furthered its electric vehicle transition with additional investment in Euler Motors.<\/p>\n\n\n\n
Lead Paragraph<\/strong><\/h2>\n\n\n\n
Hero MotoCorp Ltd (HEROMOTOCO) reported its highest-ever quarterly revenue of Rs 12,328 crore for the third quarter ended December 31, 2025. This represents a 21% year-on-year increase, underpinned by sales volumes of 16.97 lakh units, a 16% rise over the same period last year. Normalized profit after tax (PAT) reached Rs 1,439 crore, reflecting a 20% growth compared to the previous fiscal.<\/p>\n\n\n\n
Key Development<\/strong><\/h2>\n\n\n\n
The Board of Directors approved an interim dividend of Rs 110 per equity share (5,500%) for the 2025-26 financial year, with a record date of February 11, 2026. Strategically, the company authorized an additional investment of Rs 275 crore in Euler Motors Private Limited, an associate company specializing in electric three and four-wheelers. This infusion, comprising primary and secondary purchases, is expected to increase Hero MotoCorp’s stake in Euler to approximately 36% on a fully diluted basis.<\/p>\n\n\n\n
Financial Performance<\/strong><\/h2>\n\n\n\n
Standalone EBITDA for the quarter stood at Rs 1,810 crore, marking a 23% increase year-on-year. EBITDA margins expanded by 22 basis points to 14.7%, aided by a favorable product mix and operational efficiencies. Reported PAT for the quarter was Rs 1,348.55 crore, which includes a one-time exceptional charge of Rs 119 crore. This provision follows the government’s notification of four new Labour Codes on November 21, 2025. For the nine-month period ending December 31, 2025, total revenue rose 10% to Rs 34,034 crore.<\/p>\n\n\n\n<\/figure>\n\n\n\n
Business Outlook & Strategy<\/strong><\/h2>\n\n\n\n
Management’s strategy focuses on product mix optimization and innovation to sustain financial performance. A key priority is the expansion of the emerging mobility portfolio via the VIDA brand and the Harley-Davidson 2025 lineup, which recently added the H-D X440T and new Road Glide models. Capital allocation also prioritizes sustainability, with investments totaling approximately Rs 7.92 crore in solar power wheeling projects for manufacturing plants in Haridwar, Neemrana, and Jaipur.<\/p>\n\n\n\n
Sector and Macro Context<\/strong><\/h2>\n\n\n\n
The third quarter saw the company\u2019s highest-ever festive season sales, which were instrumental in driving volume growth. Positive macroeconomic conditions and a revival in rural demand have served as significant tailwinds for the motorcycle industry. In its global business, Hero MotoCorp expanded to 52 countries, successfully entering European markets in Italy, Spain, and France.<\/p>\n\n\n\n
Analyst Commentary and Investment Rationale<\/strong><\/h2>\n\n\n\n
Internal commentary from the Chief Financial Officer notes that the quarter was characterized by healthy double-digit growth in volumes and strong retail momentum. The company’s ability to maintain margin expansion while investing in electric mobility and premium retail\u2014exemplified by the growth of Hero Premia stores to over 100 cities-provides a rationale for investor interest. The substantial 5,500% interim dividend further reinforces shareholder returns.<\/p>\n\n\n\n
Guidance and Future Outlook<\/strong><\/h2>\n\n\n\n
The company maintains a positive outlook for its VIDA EV brand, which attained an 11% market share during the quarter. Future growth is expected from the introduction of Euro5+ compliant models in international markets and the expansion of the VIDA VX2 lineup. Regarding regulatory costs, the company is evaluating the financial impact of the End-of-Life Vehicles (ELV) Rules 2025, although precise estimates remain pending a finalized pricing mechanism for scrapping certificates.<\/p>\n\n\n\n
Regulatory Milestones and Segment Updates<\/strong><\/h2>\n\n\n\n
\u2022 Segment Reporting: Hero MotoCorp continues to operate within a single automotive segment.<\/p>\n\n\n\n
\u2022 Parts and Accessories: The Parts, Accessories, and Merchandising (PAM) business reached record quarterly revenue of Rs 1,673 crore.<\/p>\n\n\n\n
\u2022 Management: Mr. Prabhat Singh was appointed Company Secretary and Compliance Officer, effective February 5, 2026.<\/p>\n\n\n\n
\u2022 EV Portfolio: The company launched the DIRT.E K3 size-adaptive electric motorcycle, which received a CES 2026 Innovation Award.<\/p>\n\n\n\n
Business Model and Market Situation<\/strong><\/h2>\n\n\n\n
Hero MotoCorp has held the position of world’s largest manufacturer of motorcycles and scooters for 25 consecutive years. The business model balances leadership in the 100cc\u2013125cc segment with a push into electric mobility and premium segments. Exports grew 41% during the quarter, highlighting a successful diversification into global markets.<\/p>\n\n\n\n
Where Does Hero MotoCorp Ltd Stand Today?<\/strong><\/h2>\n\n\n\n
The company remains the dominant player in the Indian mass-market motorcycle segment while aggressively scaling its electric vehicle footprint through VIDA and its investment in Euler Motors. With record revenue, strong margin expansion, and a clear pivot toward premiumization and global expansion, Hero MotoCorp is positioned to navigate the transition to sustainable mobility while maintaining its core market leadership.<\/p>\n","protected":false},"excerpt":{"rendered":"
The world\u2019s largest two-wheeler manufacturer achieved a 21% revenue increase driven by record festive sales and premium segment expansion. The Board approved a substantial interim dividend and furthered its electric vehicle transition with additional investment in Euler Motors. Lead Paragraph Hero MotoCorp Ltd (HEROMOTOCO) reported its highest-ever quarterly revenue of Rs 12,328 crore for the […]<\/p>\n","protected":false},"author":2385,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,10444],"tags":[15898,15899,15902,15891,15895,15893,15894,15897,15900,15892,15901,15896,15904,15903],"class_list":["post-179826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-others","tag-hero-motocorp-announcement","tag-hero-motocorp-earnings","tag-hero-motocorp-investor-relations","tag-hero-motocorp-ltd","tag-hero-motocorp-management","tag-hero-motocorp-price","tag-hero-motocorp-q1","tag-hero-motocorp-stocks","tag-hero-motocorp-ticker","tag-heromotoco","tag-heromotoco-q1","tag-heromotoco-q2","tag-heromotoco-q3","tag-heromotoco-q4"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":123857,"url":"https:\/\/alphastreet.com\/india\/hero-motocorp-ltd-heromotoco-q4-fy21-earnings-concall\/","url_meta":{"origin":179826,"position":0},"title":"Hero Motocorp Ltd (HEROMOTOCO) Q4 FY21 Earnings Concall","author":"Sahil_Anand","date":"May 7, 2021","format":false,"excerpt":"Hero Motocorp Ltd (NSE:HEROMOTOCO) Q4 FY21 Earnings Concall dated May 07, 2021","rel":"","context":"In "Earnings"","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/06\/Hero-Motocorp-Ltd-Q4-FY21-Earnings-Call.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/06\/Hero-Motocorp-Ltd-Q4-FY21-Earnings-Call.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/06\/Hero-Motocorp-Ltd-Q4-FY21-Earnings-Call.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/06\/Hero-Motocorp-Ltd-Q4-FY21-Earnings-Call.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/06\/Hero-Motocorp-Ltd-Q4-FY21-Earnings-Call.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/06\/Hero-Motocorp-Ltd-Q4-FY21-Earnings-Call.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":170270,"url":"https:\/\/alphastreet.com\/india\/hero-motocorp-q1-fy26-earnings-results\/","url_meta":{"origin":179826,"position":1},"title":"HERO MOTOCORP Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"August 18, 2025","format":false,"excerpt":"Hero MotoCorp Limited, formerly known as Hero Honda, is one of India\u2019s pioneer motorcycle manufacturers. Established in 1984 through a technological collaboration with Honda, the company became fully independent in 2011, adopting the name Hero MotoCorp. Below are its Q1 FY26 Earnings Results. Q1 FY26 Earnings Results Revenue: \u20b99,728 crore,\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"HEROMOTOCO Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/E.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/E.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/E.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/E.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/E.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/E.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":166963,"url":"https:\/\/alphastreet.com\/india\/heromotoco-q3-2024-2025-call-highlights-parts-business-growth-ev-expansion-and-rural-growth\/","url_meta":{"origin":179826,"position":2},"title":"HEROMOTOCO Q3 2024-2025 Call Highlights: Parts Business Growth, EV Expansion and Rural Growth!","author":"Praveen","date":"February 18, 2025","format":false,"excerpt":"Hero Motocorp Ltd., the world's No. 1 two-wheeler manufacturer, in its Q3 earnings call highlighted strong growth in its parts business and introduced the Xoom 160 scooter. The management discussed the potential benefits of budget tax savings for their core INR6-12 lakh income customer base and their EV strategy with\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":149106,"url":"https:\/\/alphastreet.com\/india\/hero-motocorp-ltd-driving-forward-with-innovation-and-success\/","url_meta":{"origin":179826,"position":3},"title":"Hero MotoCorp Ltd.: Driving Forward with Innovation and Success!","author":"Divyansh_Kasana","date":"July 13, 2023","format":false,"excerpt":"Stock Data: TickerNSE: HEROMOTOCOExchangeNSEIndustryAUTOMOBILES & AUTO COMPONENTS Price Performance: Last 5 Days-2.25%YTD+13.36%Last 12 Months+10.24%As on 13-07-2023 Company Description: Hero MotoCorp Ltd. is a leading two-wheeler manufacturing company headquartered in New Delhi, India. With a rich heritage spanning over three decades, Hero MotoCorp has emerged as the world's largest two-wheeler manufacturer.\u2026","rel":"","context":"In "Research Summary"","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-3.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-3.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-3.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-3.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":132584,"url":"https:\/\/alphastreet.com\/india\/hero-motocorp-research-report\/","url_meta":{"origin":179826,"position":4},"title":"Hero Motocorp Research Report","author":"sreerupa","date":"August 5, 2022","format":false,"excerpt":"Stock Data Ticker: HEROMOTOCO Exchange :NSE and BSE Industry: Automobile Price Performance Last 7 days\u00a0\u00a0\u00a0 -1.68% YTD\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12.53% Last 12 months\u00a0\u00a0\u00a0\u00a0 -1.71% The stock has picked up from Apr\u201922 due to EV transition. On last Friday the shares jumped over 6% after the company announced a 4% hike in the\u2026","rel":"","context":"In "Analysis"","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"Research Summary","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143206,"url":"https:\/\/alphastreet.com\/india\/hero-motocorp-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":179826,"position":5},"title":"Hero MotoCorp Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"March 8, 2023","format":false,"excerpt":"Key highlights from Hero MotoCorp Ltd (HEROMOTOCO) Q3 FY23 Earnings Concall Management Update: [00:03:12] HEROMOTOCO said that with global headwinds expected to continue, India is relatively much better placed and the company expects double-digit revenue growth for the next fiscal for two-wheeler industry. [00:03:51] HEROMOTOCO said it\u2019s on path to\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/179826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2385"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=179826"}],"version-history":[{"count":1,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/179826\/revisions"}],"predecessor-version":[{"id":179829,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/179826\/revisions\/179829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=179826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=179826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=179826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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