Now Reading: Hero MotoCorp Q1 profit surges on EV, premium bike sales
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Hero MotoCorp Q1 profit surges on EV, premium bike sales
Hero MotoCorp's June quarter revenue rose 36% from a year earlier to Rs 13,000 crore, helped by 23% volume growth to 16.8 lakh units. A shift to electric vehicles, scooters and premium…
The Story in Brief
Hero MotoCorp's June quarter revenue rose 36% from a year earlier to Rs 13,000 crore, helped by 23% volume growth to 16.8 lakh units. A shift to electric vehicles, scooters and premium variants delivered an 8% positive mix benefit. Core ICE portfolio grew 21%, while EV sales jumped 151%.
The company raised prices by about 4.5% across ICE models and early double-digit for EVs after West Asia war-driven cost inflation. Gross margin fell 475 bps on-year to 28.5%, but Ebitda margin dropped only 114 bps to 13.3%. EV inventory stands at just 2-3 days. Management plans to lift EV capacity to 45,000 units per month by FY27-end from 30,000 now.
The Indian Opinion
Celebrating Hero's premium shift while ignoring its entry-level worries would be one-sided. The company holds 85.8% of the 100cc market, but that segment is slowing. Management says EV demand is strong, yet margins remain under pressure from input costs. Pricing power is being tested. Watch whether Hero can hold its 100cc share without resorting to discount wars, and whether EV capacity expansion actually translates into sales. A single quarter of 151% EV growth does not prove sustained demand. The next two festive months will tell.
Sources (2): ndtvprofit.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
