Hero MotoCorp Q3: Profit Jumps To ₹1,268 Cr, Revenue Surges 22%; Announces ₹110 Dividend

Two-wheeler giant Chief Hero MotoCorp registered a robust set of profits in the December quarter, which was backed by good volume growth and the growth of demand conditions.

In Q3FY26, the firm registered a 14% year-on-year (YoY) increase in consolidated net profit (PAT) of ₹1,268 crore against ₹1,108 crore in the previous year. The profit was attributable to the owners of the company.

Operation-related revenues increased 22% YoY to ₹12,487 crore, as compared to ₹10,260 crore in Q3FY25, with higher sales movement and better realisations.

Dividend Announcement and Euler Motors Investment

Hero MotoCorp’s board declared an interim dividend of ₹110 per equity share for FY2025-26. The company fixed 11 February 2026 as the record date for determining shareholder eligibility. The interim dividend payout is scheduled to be completed by 7 March 2026, according to the company’s filing.

The board also approved an additional investment of ₹275 crore in Euler Motors Private Limited, to be made in one or more tranches through a mix of primary infusion and secondary purchase.

Q3FY26 Highlights

The Q3FY26 performance of Hero MotoCorp was stable, which was backed up by the high volume growth and better operating parameters. Even though profitability weakened a bit on a sequential basis, the company still provided robust revenue growth and margin improvement.

• PAT: Consolidated PAT declined 3% QoQ to ₹1,268 crore, compared with ₹1,309 crore in the previous quarter.

• Revenue: Revenue increased 2% QoQ to ₹12,487 crore, up from ₹12,218 crore in Q2FY26, indicating stable topline traction despite a marginal moderation in profits.

• Standalone Performance: Standalone revenue rose 21% YoY to ₹12,328 crore, while normalised PAT increased 20% to ₹1,439 crore.

• Volume: The company sold 16.97 lakh motorcycles and scooters in Q3FY26, compared with 14.64 lakh units in Q3FY25, marking a 16% YoY increase.

• EBITDA: EBITDA rose 23% YoY to ₹1,810 crore, supported by operating leverage, a favourable product mix, and efficiencies. The EBITDA margin increased by 22 basis points to 14.7%, which indicated improved pricing discipline and operational performance.

Management Commentary And Road Ahead For Investors Highlights

Hero MotoCorp CFO Vivek Anand indicated that the company had achieved the best performance because of healthy double-digit growth in volume and the increase in retail momentum. He also stated that operational excellence, product mix optimisation, consumer-centricity, and innovation were considered important pillars that the company continues to rely on to generate consistent financial performance.

The other factors that Anand cited in boosting the motorcycle sales and growth in the economy segment were the improved macro conditions and favourable GST 2.0 tailwinds that boosted rural demand.

The results of Hero MotoCorp in Q3FY26 make it evident that the company has achieved a positive growth in revenue and volume; moreover, there has been a consistent growth in its margin due to improved product mix and efficiencies. The announcement of the interim dividend will increase the returns to shareholders, and the scheduled ₹275 crore investment in Euler Motors implies that the company remains dedicated to the electric mobility market.

Investors need to monitor the sustainability of demand, particularly in the rural market, and the implementation of EV growth and margin performance over the next few quarters.

Source:

Economic Times

Business Standard