Hero MotoCorp Q2 FY27 Results Analysis: Revenue Jumps 21% On Festive Volumes, Margin Lags 14-16% Band (HEROMOTOCO)
Hero MotoCorp Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 14,687.43 Cr (+21.12% YoY) and PAT growth of +4.55% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 14,687.43 Cr (+21.12% YoY) |
| PAT (Q2) | Rs. 1,456.22 Cr (+4.55% YoY) |
| EBITDA margin | 13.40% (-165 bps YoY) |
| EPS (Q2) | Rs. 72.75 (+4.50% YoY) |
| Market cap | Rs. 104,037.10 Cr |
| CMP | Rs. 5,197.65 |
Quarter Snapshot
Hero MotoCorp delivered 21.12% standalone revenue growth on festive volumes and mix, with market share gains in 100cc motorcycles (84.4%) and scooters, and sequential EBITDA margin stabilization at 13.40%. However, margins remain ~165 bps below last year and below the company's 14-16% band, and reported consolidated PAT growth of 40.85% is flattered by a Rs.397 Cr one-time Ather gain — normalized PAT growth of 17.17% (standalone +4.55%) lags revenue. Execution against management's own guidance (in-quarter cost neutralization, capex, outgrowth) is on track, but no guidance beat was delivered.
Key Investment Insights
Key Positives
- Standalone revenue grew 21.12% YoY to Rs.14,687.43 Cr on volumes of 18.68 lakh units (+10.47% YoY)
- EBITDA margin stabilized sequentially at 13.40% standalone (+12 bps QoQ) after the Q1 trough of 13.28%
- 100cc motorcycle market share expanded 5 pts YoY to 84.4%; ICE scooter share up 1 pt YoY to 7.3%
- Scooter portfolio (ICE+EV) contributed 13% of volume mix vs 10% in Q2 FY26; ICE scooter dispatches +35% YoY
- Parts, Accessories & Merchandising revenue grew 27% YoY to Rs.1,941 Cr
- VIDA retail volumes of 66,531 units grew 76% YoY; Germany entered as the 54th market
- H1 FCF of Rs.2,502.12 Cr consolidated; net cash ≈ Rs.9,200 Cr
- H1 capex of Rs.726.10 Cr is 48.4% of the Rs.1,500 Cr FY27 guidance — on track
Risk Factors
- EBITDA margin of 13.40% is ~165 bps below the year-ago 15.0% and below the company's 14-16% medium-term band
- Gross margin compressed ~505 bps YoY on commodity headwinds (28.20% vs 33.25%)
- Standalone PAT grew only 4.55% YoY vs 21.12% revenue growth
- Reported consolidated PAT growth of 40.85% includes a Rs.397 Cr one-time Ather gain; normalized PAT +17.17%
- Exports declined for a third straight month (Aug −24.56%, Sep −31.05% YoY per company updates)
- Lease liabilities rose to Rs.829.76 Cr from Rs.280.06 Cr, pre-committing future fixed costs
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.