Hero MotoCorp Q3 preview: Net profit to rise 47% on operating leverage, lower costs

Hero Motocorp's revenue from operations is expected to climb 21.1 percent to Rs 9,728 on-year on the back of a higher average selling price and price hikes undertaken by the company.

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26 Aug, 2025 12:21

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The country's leading two-wheeler major Hero MotoCorp is expected to showcase a robust October-December quarter led by benign input costs, operative leverage and a surge in volumes.

The Harley Davidson maker is expected to report a net profit of Rs 1,048 crore, according to the average estimate of six brokerage firms. During the same period last year, the company's net profit stood at Rs 711 crore.

The Delhi-headquartered company's revenue from operations is expected to climb 21.1 percent to Rs 9,728 on-year on the back of a higher average selling price and price hikes undertaken by the company. In Q3FY23, Hero Moto clocked a revenue of Rs 8,031 crore.

Hero MotoCorp

This, in turn, could give a boost to the company's earnings before interest, tax, depreciation and amortisation (EBITDA), which is expected to increase 47 percent on-year to Rs 1,361 crore, average estimates show. On the margin front, EBITDA margins could rise by 2.5 percent or 250 basis points to 14 percent from 11.5 percent in the same period last year. "EBITDA margin to expand on better net pricing and scale", Nuvama Institutional Equities said in its preview report. Nuvama also added that the Japanese Yen's depreciation against the Rupee is also a positive.

In January, the company sold 433,598 units, reflecting a 22 percent growth compared to the same month in 2023, where sales stood at 356,690 units.Hero clocked domestic sales of 420,934 units and exports of 12,664 units for January. The overall sales for the fiscal year 2022-2023 reached 4,662,630 units, comprising 4,516,018 units in the domestic market and 146,612 units in exports.

Last month, it introduced two new bikes, the Xtreme 125R and a special collector's edition called 'Hero Forever.' Additionally, the company unveiled the Mavrick 440 at its Centre of Innovation and Technology (CIT) in Jaipur, stating that the new bike will be available in its flagship showrooms.

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