Now Reading: Hero MotoCorp Q1 profit falls 17% despite 35% revenue growth
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Hero MotoCorp Q1 profit falls 17% despite 35% revenue growth
Hero MotoCorp’s consolidated net profit fell 17.2% year-on-year to Rs 1,412.36 crore in the quarter ended June 30, 2026, even as revenue from operations rose 35% to Rs 13,126.35 crore. Total expenses…
The Story in Brief
Hero MotoCorp’s consolidated net profit fell 17.2% year-on-year to Rs 1,412.36 crore in the quarter ended June 30, 2026, even as revenue from operations rose 35% to Rs 13,126.35 crore. Total expenses grew 36.1% to Rs 11,621.48 crore, outpacing revenue and reducing profitability. The company also booked an exceptional Rs 119 crore expense linked to implementing the New Labour Code.
Growth came from premium motorcycles, electric vehicles and overseas operations. VIDA’s business rose 151% year-on-year, while the global business grew 63%. Harley-Davidson sales more than doubled, with 105% growth. Hero MotoCorp said it expanded the Harley-Davidson network to 21 full-line dealerships in India and introduced flex-fuel versions of the Splendor+ and HF Deluxe.
The Indian Opinion
The easy story is that strong sales prove Hero MotoCorp is thriving, or that a profit decline signals trouble. Both claims miss the cost pressure. Expenses grew faster than revenue, while the labour-code charge also affected reported earnings. Premium bikes, EVs and exports may improve the mix, but the next test is whether margins recover without relying on exceptional exclusions. The September quarter’s profit before tax will offer a cleaner measure.
Source: auto.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
