Hero MotoCorp bets on better monsoon, good marriage season to outpace industry growth

Hero MotoCorp shares have rallied 11 percent in the last one month.

Hero MotoCorp is riding into FY26 with confidence. It expects to outpace the broader two-wheeler industry growth of 6–7 percent, helped by a strong marriage season, healthy Q4 performance, and continued traction in its core and premium segments.

“Initial signs are already visible,” the company said in its post-earnings call. “This is the first time in a while that we have such a good marriage season, and the forecast for a normal monsoon is another big plus. Income tax relief has left more money in consumers’ hands, inflation is lower, and government spending remains strong—these are all clear tailwinds.”

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While the OBD-2 emission norms have led to a roughly 2 percent price hike, management doesn’t see that derailing momentum. Hero expects industry volumes to grow steadily, and believes it is better placed than peers to capture demand.

“We are confident of outperforming the industry,” it said, citing multiple growth levers. In the March quarter, Hero gained 600 basis points in market share in the entry-level segment and 250 basis points in the 125cc category—both critical for rural markets. New scooters launched recently have also received a strong response, boosting retail sales and late-Q4 market share.

Hero is looking to double down on its strengths this year. With around one lakh customers visiting its service centres daily, the company sees a huge opportunity to drive upgrades and deepen customer engagement through own-based marketing.

On the electric side, the company has filed for PLI approval for its VIDA Pro electric scooter and expects to secure clearance by July. Meanwhile, its spare parts business continued to be a solid contributor, with revenue rising 15 percent year-on-year to Rs 1,553 crore.

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Despite cost pressures from regulatory changes, Hero expects its operating margin to remain steady in the 14–16 percent range, supported by volumes, better product mix, and internal efficiencies.

Hero MotoCorp on May 13 reported a 6 percent YoY jump in net profit to Rs 1,081 crore for the fourth quarter of the financial year 2025. It had earlier reported a net profit of Rs 1,016 crore in the corresponding quarter of the previous financial year. Notably, the motorcycle-maker's Q4 net profit is slightly lower than Moneycontrol's poll estimate of Rs 1,095 crore.

The company's revenue from operations meanwhile, grew 4.4 percent on-year to Rs 9,938.65 crore. This is higher than the MC poll estimate of Rs 9,715 crore.

Speaking about the company's performance, Hero MotoCorp's Executive Director and Acting CEO Vikram S Kasbekar said, "We achieved the highest‐ever revenue and profit in the year, reinforcing our position as the market leader for the 24th consecutive year, closing both CY24 and FY25 at the top. Our success during the year was underpinned by robust growth across the premium, scooter, and EV segments, fueled by several new product launches. Export volumes outpaced industry trends, and we further expanded our premium retail footprint across India while entering new global markets."

At about 1:10 pm, shares of the company were trading at Rs 4,056, lower by 0.2 percent from the last close on the NSE. Hero MotoCorp shares have rallied 11 percent in the last one month.

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