On the back of lower two-wheeler sales and high input costs, Hero MotoCorp on Tuesday reported a modest 6% rise in its standalone net profit at Rs 1,016 crore for the January–March quarter. The figure missed Bloomberg’s consensus estimate which had pegged the profit at Rs 1,124 crore.
Domestic sales declined by 3.4% year-on-year, with volumes declining to 1.28 million units. Revenue from operations rose 4% to Rs 9,938 crore, beating estimates of Rs 9,757 crore. Operating profitability improved marginally, with Ebitda increasing by 4% year-on-year to Rs 1,416 crore, surpassing the estimated Rs 1,391 crore.
For the full financial year ended March 31, 2025, the company posted a 9% rise in standalone revenue from operations, reaching Rs 40,756 crore. Net profit for the year stood at Rs 4,610 crore, up16%. Total sales during the year amounted to 5.89 million units.
The board has recommended a final dividend of Rs 65 per share, translating to 3,250% of the face value of Rs 2. Subject to shareholder approval, the payout will be made within 30 days following the declaration at the upcoming annual general meeting.
Hero MotoCorp attributed its FY25 performance to gains across the premium motorcycle, scooter, and electric vehicle segments, along with enhanced retail presence and growing exports. The company is banking on continued demand in these segments, bolstered by new product introductions and expanding market reach.
“We are observing strong retail traction, especially in our new premium and scooter offerings. Continued consolidation in the core segment, growth in the 125cc category, and the upcoming EV launch position us well for sustained momentum,” said Vikram S Kasbekar, executive director & acting chief executive officer, Hero MotoCorp.
“Looking ahead, we remain optimistic about the near‐to‐mid‐term outlook, key macroeconomic indicators, including revised income tax slabs, repo rate cuts, a strengthening rural economy, and a favorable monsoon forecast, are expected to support industry growth,” said Vivek Anand, chief financial officer, Hero MotoCorp.
Hero also plans to continue its premiumisation strategy, with recent launches including the Xtreme 250R, Xpulse 210, and the refreshed Xtreme 160R 2V, along with a strengthened scooter lineup featuring the Destini 125, Xoom 125, and Xoom 160.