HEROMOTOCO
Large CapHero MotoCorp Limited
Auto
Hero MotoCorp is the world's largest 2-wheeler manufacturer for 25 consecutive years. It focuses on rapidly gaining share in fast-growing segments like scooters, EVs, premium motorcycles (Harley-Davidson partnership), and global business, supported by investments in capacity, new products, and low-emission powertrains.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 52/100margin compression · Rev +30% YoY · PAT +26% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹12,978 Cr | +30.2% | +3.9% |
| EBITDA | ₹1,870 Cr | +29.8% | +6.7% |
| Operating margin | 14.0% | +0 bps | +0 bps |
| PAT | ₹1,474 Cr | +26.1% | +15.6% |
| PAT margin | 11.4% | -37 bps | +115 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Hero MotoCorp reported highest ever Q4 and FY26 revenue, EBITDA, and PAT. Q4 revenue grew 29% YoY to ₹12,797 Cr, EBITDA 31% YoY to ₹1,856 Cr, and PAT 30% YoY to ₹1,401 Cr. FY26 revenue grew 15% to ₹46,830 Cr, EBITDA 17% to ₹6,871 Cr, and PAT 14% to ₹5,268 Cr. ICE business EBITDA margin expanded 100 bps YoY to 17% in Q4.
The company delivered strong Q4 and FY26 results, achieving record financials and market share gains in focus segments. Strategic investments in EV and scooter capacity, new products, and global expansion are underway. However, commodity headwinds and EV business investments are expected to create short-term margin pressure, though management is committed to its medium-term guidance.
Scooter Portfolio Expansion
Increased Destini capacity by 50% and in process of doubling Xoom capacity this quarter. Expects scooters to grow a couple of points more than motorcycles in FY27.
Electric Vehicle (EV) Business
EV scooter volumes expanded 2.5x YoY. Capacity to increase by 50% within a month, then further doubling before end of FY27. Many new launches planned for VIDA brand.
Premium Motorcycle Segment
Harley-Davidson range grew 26% YoY. New X440 T variant gave 120% growth YoY in Q4. Many new exciting launches expected in premium ranges.
Global Business (Exports)
Global business grew 41% YoY in Q4 FY26. Plans to continue momentum in FY27, expanding in Latin America, Africa, and SAARC geographies (e.g., Bangladesh, Sri Lanka).
Scooter Capacity Expansion
Destini capacity increased by 50%. Xoom capacity is in the process of doubling, expected this quarter.
EV Capacity Expansion
EV capacity will increase by 50% within a month, with further doubling planned in a few quarters before the end of FY27.
Global Parts Center
Committed over ₹700 crores of investment to build a second global parts center in South India, doubling parts handling capacity.
Overall Capex
Committed over ₹1,500 crores of capex in FY27 for capacity expansion.
Positive Demand Momentum
2-wheeler sector started FY27 on a positive note, continuing the momentum seen in the second half of FY26.
Structural Growth Drivers
Urbanization, increasing penetration of e-commerce, and the gig economy support 2-wheelers as a primary source of mobility.
Commodity Cost Inflation
Industry is facing commodity headwinds (metals, gas) that began in March, leading to a transitionary impact on margins in the short term.
Labor Cost Increase
Recent past has seen an increase in certain labor costs, contributing to overall cost headwinds.
Geopolitical Uncertainties
Broader economy navigating short-term uncertainties due to developments in West Asia, impacting commodity costs and transportation.
Export Market Demand Impact
Fuel price hikes in Bangladesh and Sri Lanka due to West Asian developments are impacting demand in the short term.
Commodity Price Volatility
Commodity prices are evolving very fast, making it difficult to quantify the quantum of headwind and fully offset through price hikes.
Margin Pressure from EV Investments
EV business is in a build-out phase with significant R&D and capacity expansion investments, impacting overall EBITDA margins.
EPR Regulation Impact
Draft EPR notification is in an evolving stage; industry is working on operationalization, and quantification of impact is difficult at this point.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Primary financial results (revenue, EBITDA, PAT) are presented YoY for both Q4 and FY26. However, specific operational metrics like ASP increase and EV EBITDA loss reduction are discussed QoQ, indicating sequential momentum is also relevant.
Volume Growth - Scooters
Scooter volumes grew 48% year-on-year in Q4 FY26.
Volume Growth - EV Scooters
EV scooter volumes expanded 2.5x over the previous year in Q4 FY26.
Volume Growth - Global Business
Global business (wholesale/dispatches) saw growth of 41% year-on-year in Q4 FY26.
Volume Growth - Harley-Davidson Range
Harley-Davidson range of bikes grew 26% year-on-year in Q4 FY26.
FY27 Industry & Company Growth Outlook
Anticipates high single-digit growth for the 2-wheeler industry in FY27 and expects to grow ahead of the industry.
Medium-Term Margin Guidance
Remains committed to a medium-term margin guidance of 14% to 16%, mitigating short-term impacts through price increases and cost savings.
Continued Investment in Technology
Committed to continuous investments in low-emission powertrains (EV, flex fuels), connected vehicles, and digital technology (Gen AI).
New Product Launches
Expects many new exciting launches in FY27 across VIDA, premium ranges, and scooters, building on 9 launches in FY26.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| FY27 Industry Volume Growth | High single-digit expected | Any dampening of sentiment or demand softening due to macro headwinds and fuel price increases. |
| EV Capacity Ramp-up & Profitability | Capacity to double by FY27 end; EBITDA losses per unit reducing QoQ. | Execution of capacity expansion and continued improvement in EV business profitability, supported by PLI benefits. |
| Commodity Price Trends & Margin Impact | Q4 material cost inflation ₹2,100/unit; April price hike ~2%. | Further commodity price volatility and the company's ability to fully pass on costs and maintain its 14-16% medium-term margin guidance. |
| Overall Retail Market Share | Appears to have come off due to business mix, despite category gains. | Reversal and overall retail market share gains as high-growth segments (EV, scooters, premium, exports) increase their share in the business mix. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -11.6% / mo · near 52W low
Technical chart
HEROMOTOCOdaily · 5Y-10.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 42. Wait for confirmation.
- SMA20 falling (~4.3% over last month) — short-term momentum negative.
- RSI(14) at 42 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.0%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 48.7%.
Main drags
- Valuation is weaker at 14/30; verify the latest quarterly trend.
- Balance sheet is weaker at 11/15; verify the latest quarterly trend.
- Growth is weaker at 19/25; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 100th percentile of the scored universe and 99th percentile within Auto. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · Auto: 99th pctile, median 71 · Large: 100th pctile, median 74
92 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4%.
- ▸12 years of positive FCF.
- ▸Debt/equity is 0.04.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 16.40
- P/B
- 4.42
- EV/EBITDA
- 12.19
- Market Cap
- 95554.00Cr
Profitability
- ROE
- 28.50%
- ROCE
- 35.80%
- ROA
- 17.27%
- Dividend Y
- 3.87%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 12.00%
- EPS 3Y
- 29.00%
Balance Sheet
- Debt/Equity
- 0.04
- Interest Coverage
- 90.32×
- Altman Z
- 8.09
- Book Value
- 1080.00
Cash Flow
- FCF Yield
- 4.02%
- FCF Positive Y
- 12/5
- OCF
- 8315.00 Cr
- EPS TTM
- 286.96
Shareholding
- Promoter Hold
- 34.73%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 27%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.