HEROMOTOCONSEQ2 FY26November 19, 2025

Hero MotoCorp Limited

9,272words
92turns
9analyst exchanges
0executives
Key numbers — 40 extracted
1 million
markets. Riding on this positive sentiment, we concluded the festive season this year with nearly 1 million retails on VAHAN on October’25. Our VAHAN market share in October expanded by 3.7% year-on-year t
3.7%
th nearly 1 million retails on VAHAN on October’25. Our VAHAN market share in October expanded by 3.7% year-on-year to 31.6%. Consumer sentiment has continued to remain buoyant. And even after the fes
31.6%
etails on VAHAN on October’25. Our VAHAN market share in October expanded by 3.7% year-on-year to 31.6%. Consumer sentiment has continued to remain buoyant. And even after the festive season, we expe
rs,
the gain. We gained market share dispatch across all key segments - Entry, Deluxe, Premium, Scooters, EVs and even our Global Business. Our entry segment share in overall 2-wheeler industry expanded
3%
egment share in overall 2-wheeler industry expanded for the second consecutive quarter. We gained 3% market share in Quarter 2 and 5% in H1 in the segment, led by the launch of aspirational HF Delux
5%
industry expanded for the second consecutive quarter. We gained 3% market share in Quarter 2 and 5% in H1 in the segment, led by the launch of aspirational HF Deluxe Pro, coupled with a very emotio
10%
atch market share. In scooters, our recent launches of Destini 125, Xoom 125 led to approximately 10% market share in the 125cc segment. Bulk of our market share gains have come primarily from the st
rs 50
segment, our premium network expansion progressed well. We have now reached 100 stores, which covers 50% of the upper premium market. Xpulse retails grew by 31% in the ongoing festival period. The EV b
31%
ve now reached 100 stores, which covers 50% of the upper premium market. Xpulse retails grew by 31% in the ongoing festival period. The EV business delivered its highest ever quarterly market share
11.7%
the ongoing festival period. The EV business delivered its highest ever quarterly market share of 11.7%, which is up 6.8% year-on-year, riding on the success of Vida VX2. And finally, in our global bus
6.8%
l period. The EV business delivered its highest ever quarterly market share of 11.7%, which is up 6.8% year-on-year, riding on the success of Vida VX2. And finally, in our global business, dispatches
77%
on the success of Vida VX2. And finally, in our global business, dispatches grew by an impressive 77%, which is almost 3x the industry growth. Overall, on the back of the macroeconomic tailwind and a
Guidance — 20 items
Mitul Shah
opening
“On behalf of DAM Capital, I welcome you all to the Q2 FY'26 Post Results Conference Call of Hero MotoCorp.”
V. S. Kasbekar
opening
“And even after the festive season, we expect the retail momentum to sustain.”
V. S. Kasbekar
opening
“We expect this momentum to continue as we further scale up our Glamour X.”
V. S. Kasbekar
opening
“His profound experience will be instrumental in shaping and guiding the next exciting chapter of Hero MotoCorp's journey.”
Vivek Anand
opening
“I'm pleased to report strong financial performance for Hero MotoCorp for the second quarter and first half of FY'26.”
Vivek Anand
opening
“Moving on to the half year FY'26 results.”
Vivek Anand
opening
“Based on these encouraging trends, we expect the 2-wheeler industry to grow 8% to 10% in the second half of FY'26 with Hero poised to outperform the overall market and continue to gain market share.”
Vivek Anand
opening
“Dow Jones Sustainability Index score further improved to 75 in FY'25 from 69 in FY'24, reflecting HMCL's leadership towards sustainable business growth.”
Vivek Anand
opening
“We expect the momentum in growth to continue, supported by benefits flowing in from the GST reforms, healthy macroeconomic parameters and a robust product portfolio.”
Ashutosh Varma
qa
“And that's why November continues to be very strong, and we expect that to continue going forward.”
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Risks & concerns — 7 flagged
Basically, if you look at the growth what you're clocking in October and what we are slated to do as an industry in November, if you work with the 10% number for the second half, then that practically implies a decline for the remainder of the period.
— Pramod Kumar
Not that because, Ashutosh, it effectively implies a decline for the December to March period.
— Pramod Kumar
So we don't see a decline for sure, Pramod.
— Ashutosh Varma
All this doesn't point towards any decline that you would see, right.
— Ashutosh Varma
So from there on, you might possibly see a decline, but from -- but I mean, clearly, we expect a much better H2 and overall full year -- I mean, that better that overall full year will turn into positive and close the year, not far away from what the expectations we had set in the beginning of the year.
— Ashutosh Varma
And related to that on the profitability, thanks for sharing for last couple of quarters the drag or investment you are doing on EBITDA level.
— Pramod Amthe
Can you give us some idea what was the decline on discounts on Y-o-Y basis?
— Vipul Agrawal
Q&A — 9 exchanges
Q
Congratulations on good festive. First question was more on the festive trend. You did speak about the 17% growth. Can you give us a bit more color on what we are seeing particularly post GST in terms of a bit segment color, whether if you can split this 16%, 17% as to what came from entry, what came from scooters, etcetera - a bit more color around that and rural urban sort of color as well?
Ashutosh Varma
Hi Gunjan, Ashutosh here. I hope you can hear me well. So the festive 17-odd percent growth that we've had so far, in fact since Vivek said 16.2% it's improved in 1 day to 17% now. It's getting better with every passing day. We've seen a very strong recovery in 100cc. There were a lot of fence sitters who joined the mobility space. So that has really helped the -- us to grow ahead of the industry in the festive. And we are seeing very strong traction around Splendor, even HF. So that has helped. Scooters have been also a very good story of growth. Again, you would see our quarter 2 numbers. We
Q
Congrats for a great festive season. I had a question, I don't know if you can answer that because something that is on the mind of investors and us is that, obviously, when the GST was announced, there was a period of postponement. And then the festive was strong, but then at the same time, there was some buying which was pending for the month before. At the same time now, post festive, given the strength that we are seeing, it looks like there could be some preponement also because of the whole communication by the government as well as every company around GST cut. So just trying to underst
Ashutosh Varma
So Amyn, good to hear you again. Just the number of 17% that we mentioned is accounting for the time since Ganesh Chaturthi, and that was the time when the GST cut was announced, of course, not implemented, implemented on 22nd of September. So I mean, if you look at the I: Hero growth from 22nd onwards, it's actually I mean, far, far higher. So this actually balances out. And you would see that 17% manifesting from a little earlier than Ganesh Chaturthi so far. The good thing is that, as I was explaining to Gunjan also in the earlier question, I mean, we hadn't seen the rural market respond ve
Q
Congrats on a good festive and strong margins. My first question is on the scooter and motorcycle mix. We've seen that including EVs, it's now close to around 40-odd percent. How are you seeing that? Because clearly, in the last 1-1.5 years, the scooter ICE segment has positively surprised. With this GST cut and you mentioning about the rural and first-time buyers expectations coming back, how do you see this scooterization trend settling now? Have we hit a plateau or you see further scope of this moving up?
Ashutosh Varma
Hi Jay, thank you for the question. You're right. I think overall, ICE plus EVs put together, the scooter contribution has been pretty robust. In fact, ICE alone also has done really well. I think the good part that has happened in the scooter segment is today, there is sub segmentation and new products that are serving different needs of customers have evolved. So I mean, you today have a sporty segment, a large wheel cruising segment, a typical metal body lower 100cc commuter segment. So there are quite a lot that has emerged and everything is carving a niche out of itself, suits larger need
Q
Congratulations on a very good set of numbers. And I think credit especially to Ashutosh and the team for really turning on the market share. So my first question is on the market outlook, Ashutosh, as in -- did I hear it right that you talked about a 10% kind of a growth in the opening remarks? And just want to clarify, that's for the full year or for the second half year?
Ashutosh Varma
So yes, Vivek said that 8% to 10% growth in the second half of the year, Pramod. Good to hear you again. Yes. Great. But I think I just had one follow-up on that. Basically, if you look at the growth what you're clocking in October and what we are slated to do as an industry in November, if you work with the 10% number for the second half, then that practically implies a decline for the remainder of the period. So I'm talking about VAHAN retail, by the way. I'm talking entirely on VAHAN retail. So just trying to understand, is that expectation low or it would be -- can there be an upside to th
Q
Congratulations on a good performance for the quarter. I just wanted to understand our growth expectations in terms of the segments, when we are looking at 10% growth in the second half or the period beyond that as well, the 100cc, 125cc, premium and scooters, where -- how would you rank the growth rates or range of growth rates for these segments? And any thoughts you have?
Ashutosh Varma
So yes, the growth percentage that we spoke about was aggregate. We feel and if the festive trends are anything to go by, a very strong bounce back on the 100cc category. That's where we have seen, I mean, a very strong demand across HF, Splendor and Passion portfolio that we have- we have the strongest portfolio there. So we see that segment doing well. As I said, new customers coming into the space. Subsequently, we also expect the replacement cycles to pick up, overall rural coming back sharply towards the later part of the festive. So we expect this segment to -- I mean, it has been subdue
Q
So 2 questions, of which first one is with regard to the EV division. Thanks for the detailed data points on EVs and what we are trying to achieve in some of the key markets. What has worked for you in those 50 markets where you are number two? Is it the characteristics of marketplace or product profile? And what you plan to do taking those successes into new markets or to that extent, what is the ambition of market share in the overall EV space?
Kausalya Nandakumar
Hi Pramod, Kausalya again. Thank you for the question. What has worked for us, essentially, if you look at the new product introduction that happened in the month of July of 2025, we launched our new EVOOTER, the VX2 in core markets. So the focus of bringing this product into a category of consumers who are looking at the versatility of a scooter with the technology and total cost of operation of an EV has actually caught the imagination and preference of customers across these markets. These are focus markets for us in terms of penetration as we continue to focus on newer markets as we will s
Q
So 2 questions. One is a clarification. You mentioned that you are expecting a growth of about 8% to 10%. So I just want to understand, are you referring to retail growth in the second half? Or are you referring to wholesale growth for the industry in the second half? I: Hero
Ashutosh Varma
I mean largely -- retail, but largely wholesale should also be in the same line. Did you get that? Okay. Yes. Okay. So you said it's -- so basically, you're expecting 8% to 10% for both retail and wholesale in the second half of the year? Yes, yes. Because also, I mean, if you look at H1, largely wholesales and retails are largely matching, should match in the second half of the year as well, Joseph. Understood. The second question that I had was in relation to commodities. I think in your opening remarks, you mentioned that commodities were a tailwind. You said lower input costs. And when I l
Q
So sir, basically, my question was considering the recent elongated monsoon and there's many agriculture states which have seen some output loss. So those are many of the Hero core markets, which were impacted up till October. But what is your outlook now on the rural income visibility over the next few months? And are there any early indicators of better crop realization or dealer feedback on the financing pattern part? So how do you see the demand in the rural, particularly in the entry segment?
Ashutosh Varma
Hi Mihir, yes, you're right. I mean some of our core markets were impacted because of monsoons. We saw that impact in MP, South Gujarat, Rajasthan, UP, parts of Bihar, Bengal, I mean these are markets which are largely impacted by rains. The good thing is that, I mean, we have seen this coming back towards the later part of the festive, as I said, and also in November. I mean, you can see the trends that are visible in November in terms of what's the retail growth that's happening. I mean, we expect a strong month. As I also said in the beginning that I mean, 2 years of good monsoons overall,
Q
So my first question is on the discount. This year discounts were relatively lower as compared to last year. Can you give us some idea what was the decline on discounts on Y-o-Y basis? I'm just trying to understand what is the headroom we have to boost the demand just in case it slows down?
Ashutosh Varma
So I think this is a very specific question, but I'll say that we are not spending any less than what we were spending last year, right. I think the way we are spending that has changed. We continue to spend for consumers, right. And that is bringing in demand. Of course, there are new -- the discount is not the only lever to have demand and you're right, but we are spending as much as we are in brand building, in new product introductions. Yes. But then yes, you're right. I think we focused more on these rather than discounting, and that has come down. And also, Vipul, just to add, Vivek here
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Speaking time
Ashutosh Varma
22
Moderator
11
Vivek Anand
11
Kausalya Nandakumar
7
Pramod Amthe
6
Mihir Vora
5
Pramod Kumar
4
Joseph George
4
Vipul Agrawal
4
Umang Khurana
3
Opening remarks
Mitul Shah
Thank you, Sarthak. Good morning, everyone. On behalf of DAM Capital, I welcome you all to the Q2 FY'26 Post Results Conference Call of Hero MotoCorp. I also welcome the senior management of Hero MotoCorp to this call. Thank you for giving us the opportunity to host this conference call. Now I hand over to Mr. Umang Khurana, Head - Investor Relations and Risk, to take it forward. Over to you, Umang.
Umang Khurana
Thank you, Mitul. Thank you, Sarthak. Hello, everyone and welcome to the call. With us on the call today, we have Mr. V. S Kasbekar, our CEO; Vivek Anand, the Chief Financial Officer; Ashutosh Varma, who is the India Business Unit Chief Business Officer; and Kausalya Nandakumar, the EV business Chief Business Officer as well. We will begin the call with opening comments from Mr. Kasbekar and then Vivek. Thereafter, we'll open up the floor and take your questions. Sarthak, we could -- we'll first begin with Mr. Kasbekar and then take it from there. Mr. Kasbekar?
V. S. Kasbekar
Thank you, Umang. Namaskar and a very warm welcome to everyone joining us for Hero MotoCorp's earnings call for the second quarter and the first half of FY '26. Let me start by wishing you and your families a very happy and a prosperous festive season. Trust you all had a safe and joyful Diwali. I hope you all would have seen our strong financial performance in the quarter. At the outset, I would like to express our sincere gratitude to the Honorable Prime Minister, Shri Narendra Bhai Modi ji and Honourable Finance Minister for announcing the GST reductions ahead of the festive season. This timely intervention significantly uplifted the consumer sentiment and revitalized retail momentum across the markets. Riding on this positive sentiment, we concluded the festive season this year with nearly 1 million retails on VAHAN on October’25. Our VAHAN market share in October expanded by 3.7% year-on-year to 31.6%. Consumer sentiment has continued to remain buoyant. And even after the festive
Vivek Anand
Thank you, Vikram ji. Namaskar and thank you all for joining the call and warm greetings for the festival season to everyone. I'm pleased to report strong financial performance for Hero MotoCorp for the second quarter and first half of FY'26. The company recorded its highest ever quarterly revenue of ₹12,126 crores, reflecting year-on-year growth of 16%, highest ever EBITDA of ₹1,823 crores, growth of 20% and highest ever PAT of ₹1,393 crores, growth of 16%. Moving on to the half year FY'26 results. The revenue amounted to ₹21,705 crores, year-on- year growth of 5.3%, EBITDA ₹3,205 crores, a growth of 7.7% and PAT of ₹2,519 crores, a year-on-year growth of 8%. The EBITDA margin during the quarter for ICE business improved to 17.7%, up 121 basis points year-on-year, driven by lower material cost, cost efficiencies and mix improvement, while we continue to invest behind brand building, new businesses and new I: Hero products. During the quarter, after taking into account the investment b
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