Hero Motors Stock Hits 5% Lower Circuit After Q2 Results Despite Profit Jumping 115.6% And Revenue Climbing 24.9%
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Hero Motors shares hit the 5% lower circuit on Thursday but remained 42% above their IPO price. Q2FY27 net profit more than doubled to ₹10.2 crore, while revenue rose 24.9% to ₹319.3 crore. The company also plans to raise its stake in UK subsidiary Hewland Engineering to 90%.
Hero Motors Ltd shares hit the 5% lower circuit on Thursday, after trading between ₹116.60 and ₹119.30 on the Bombay Stock Exchange (BSE). Despite the decline, the Hero Motors shares remained around 42% above its initial public offering (IPO) price of ₹84.
The move comes after the company reported higher profit and revenue for the September quarter and announced plans to increase its holding in UK-based subsidiary Hewland Engineering Ltd (HEL) from 51% to 90%.
What Were Hero Motors’ Q2FY27 Results?
Hero Motors reported a 115.6% year-on-year increase in net profit to ₹10.2 crore for the quarter ended September 2026, compared with ₹4.73 crore a year earlier. Revenue from operations rose 24.9% to ₹319.3 crore from ₹255.7 crore.
Operating performance also improved. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 92% to ₹35.9 crore from ₹18.7 crore. The EBITDA margin widened to 11.3%, against 7.3% in the corresponding quarter last year, an improvement of around 400 basis points, according to the company results announced on 13 October.
Why Is Hero Motors Increasing Its Stake In A UK Subsidiary?
The company plans to acquire an additional 39% stake in Hewland Engineering Ltd for approximately £0.60 million in cash. The deal involves purchasing 8,039 equity shares from existing shareholders. Hero Motors expects to complete the transaction within around six months, and the acquisition does not require government or regulatory approvals.
Hero Motors designs and manufactures powertrain solutions for automotive original equipment manufacturers (OEMs). Its products serve two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles. It operates across India, Europe, the US and ASEAN markets, with customers including BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA.
How Has Hero Motors Stock Performed Since Its IPO?
Hero Motors listed on 23 September 2026 at a discount to its ₹84 issue price. On the BSE, it opened at ₹82.10, down 2.26%, before closing at ₹98.51, a gain of 17.27% over the IPO price. On the National Stock Exchange (NSE), the Hero Motors share price debuted at ₹82, a discount of 2.38%, and ended at ₹98.40, up 17.14%. Its market capitalisation stood at ₹4,474.48 crore at the time.
The ₹1,000-crore IPO was subscribed 6.66 times on the final day of bidding. It comprised a fresh issue of ₹600 crore and an offer for sale (OFS) of ₹400 crore.
Of the fresh issue proceeds, ₹190 crore was earmarked for repayment or prepayment of outstanding borrowings, while ₹200 crore was allocated to equipment purchases for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining proceeds were intended for potential acquisitions, strategic initiatives and general corporate purposes.
Also Read - Vodafone Idea Shares Climb Around 20% In Six Months; Are Q2 FY27 Results Expected To Fuel This Rally?
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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