Please find attached herewith the transcript of the Earnings conference call for the quarter ended June 30, 2025.
HEROMOTOCO · price
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Hero MotoCorp reported Q1 FY26 revenue of ₹9,579 crores, EBITDA of ₹1,382 crores, and standalone PAT of ₹1,126 crores. Consolidated PAT was ₹1,706 crores, boosted by a one-time gain of ₹722 crores from dilution of stake in associate companies following their public issue. ICE EBITDA margin improved to 16.8% (up ~100 bps YoY) driven by better mix, price hikes, and LEAP cost-savings, while overall EBITDA margin held flat at 14.4% after absorbing ₹189 crores in EV business investments. Vahan market share recovered to 30.9% (up 1% sequentially), with HF Deluxe gaining 800 bps YoY to an 11-quarter high of ~67% in the entry segment. EV market share hit a record 7% in Q1, rising to over 10% in July following the launch of the VIDA VX2 with a Battery-as-a-Service (BaaS) model. Premia stores expanded to 120+ outlets covering ~47% of the premium industry footprint, and exports grew 27% YoY.
Strong operational performance in the core ICE business with margin expansion is positive, but short-term margin guidance of 14–16% (with the lower band likely in the near term) and ongoing EV investment drag limit upside. The EV ramp-up, premium channel scale-up, and healthy festive outlook are constructive for the stock, while the Hero FinCorp loan book of ₹54,735 crores remains a watchpoint on credit quality.