Hero MotoCorp Q2 FY27 results: net profit up 40.8% to ₹1,861 crore, revenue up 22.5%

How did Hero MotoCorp perform in Q2 FY27?

Hero MotoCorp reported consolidated revenue of ₹14,970 crore for Q2 FY27, up 22.5% from ₹12,218 crore in Q2 FY26 and 14.0% from ₹13,126 crore in Q1 FY27. EBITDA rose 7.1% year on year to ₹1,997 crore but increased 14.4% from ₹1,746 crore in the previous quarter.

The consolidated EBITDA margin was 13.3% in Q2 FY27, down 2.0 percentage points from 15.3% a year earlier but unchanged from Q1 FY27. Profit before tax rose 3.7% year on year to ₹1,944 crore but fell 1.0% from ₹1,965 crore in the previous quarter.

Net profit was ₹1,861 crore, up 40.8% from ₹1,321 crore in Q2 FY26 and 31.2% from ₹1,418 crore in Q1 FY27. Basic EPS rose to ₹92.99 from ₹65.41 and ₹70.59, respectively, while the profit margin increased 1.6 percentage points year on year to 12.4%.

On a standalone basis, revenue was ₹14,687.43 crore and profit after tax was ₹1,456.22 crore, against ₹1,392.83 crore in Q2 FY26.

What changed in Hero MotoCorp's costs and profit?

Total expenses rose 25.0% year on year to ₹13,228 crore, outpacing the 22.5% increase in revenue. Cost of materials increased 26.3% by ₹2,120 crore to ₹10,187 crore, while employee cost rose 11.5% by ₹83.71 crore to ₹809.21 crore.

Other expenses fell 2.4%, or ₹36.97 crore, to ₹1,511 crore. Finance costs increased 18.1% by ₹3.48 crore to ₹22.73 crore and depreciation rose 10.2% by ₹21.49 crore to ₹231.76 crore.

Other income fell 16.2%, or ₹38.89 crore, to ₹201.50 crore. Tax expense rose 9.9% by ₹44.94 crore to ₹500.84 crore, and there was no exceptional item in either Q2 FY27 or Q2 FY26.

Against Q1 FY27, total expenses rose 13.8% by ₹1,607 crore and cost of materials increased 9.4% by ₹871.86 crore. Other income fell 56.2% by ₹258.24 crore, while other expenses rose 12.2% by ₹164.51 crore and tax expense declined 0.4% by ₹1.95 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 28.0% to ₹28,096.85 crore from ₹21,946.14 crore in H1 FY26. Total income increased 27.8% to ₹28,758.09 crore.

Profit before tax rose 15.9% to ₹3,908.62 crore from ₹3,371.48 crore. Net profit increased 8.3% to ₹3,278.48 crore from ₹3,026.63 crore, while EPS rose 8.6% to ₹163.58 from ₹150.67.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹38,071.09 crore, up from ₹33,452.59 crore at 31 March 2026. Total equity rose to ₹23,619.79 crore from ₹21,811.02 crore.

Borrowings increased to ₹589.04 crore from ₹498.55 crore, while cash rose to ₹1,020.93 crore from ₹686.71 crore. Inventories were ₹3,076.16 crore, trade receivables ₹3,247.67 crore and trade payables ₹9,553.55 crore.

H1 FY27 operating cash flow was ₹3,228.22 crore, compared with ₹3,582.15 crore in H1 FY26. Investing cash flow was negative ₹1,419.10 crore, against negative ₹2,293.75 crore, and financing cash flow was negative ₹1,474.90 crore against negative ₹1,374.77 crore. Capital expenditure was ₹726.10 crore, up from ₹499.89 crore.

How has Hero MotoCorp done over the last 8 quarters?

Revenue reached its highest level of the eight-quarter series in Q2 FY27 at ₹14,970.50 crore, while the lowest was ₹9,727.75 crore in Q1 FY26. Revenue has now risen for five consecutive quarters on a year-on-year basis.

Quarterly net profit peaked at ₹1,860.55 crore in Q2 FY27 and was lowest at ₹1,108.38 crore in Q3 FY25. The latest profit followed ₹1,417.93 crore in Q1 FY27, indicating a sequential increase.

EBITDA margin peaked at 15.3% in Q2 FY26 and bottomed at 13.3% in Q1 FY27. It remained at 13.3% in Q2 FY27, so the margin remained at the bottom of the eight-quarter range.

What else did the company announce?

The board approved unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 on 28 October 2026. The filing also stated that the board approved an additional investment of up to INR 300 Crore in HMCL Netherlands B.V., a wholly owned subsidiary, in one or more tranches.

The overseas investment is intended for further investment in HMCL Colombia S.A.S. and Hero MotoCorp Do Brasil Ltda. The filing stated that the investment would be made in cash over the coming two years and that there would be no change in Hero MotoCorp's shareholding in HMCL Netherlands B.V.

The same-day investor presentation said Q2 revenue growth was driven by volume growth, mix improvement and pricing action, while commodity costs pressured the EBITDA margin. The available filings did not state a dividend or fund raise, and they contained no appointment announcement.

What did Hero MotoCorp's management say?

CFO Vivek Anand said: “Backed by these measures, we expect margins in quarter three to remain stable.” Management identified sustained West Asia conflict, commodity inflation, currency depreciation, export concentration and EV capacity constraints as risks.

CEO Harshvardhan Chitale said: “However, we are confident to move back to dispatch growth or a wholesale growth, even in our exports in Q3.” The earnings-call filing did not include a question-and-answer section or any analyst concerns.

How did Hero MotoCorp shares react?

After the filing appeared, the stock was up 0.3% after five minutes, down 0.4% after 15 minutes and down 0.8% after 30 minutes. It closed 4.0% lower on the reaction day from its pre-results close.

By the next day's close, the stock was down 2.9% from its pre-results close. The 2/3 Wheelers industry median was up 0.8% on the reaction day and down 1.0% by the next day, leaving Hero MotoCorp 4.8 percentage points and 1.9 percentage points behind the industry median, respectively.

Earlier reaction-day moves were positive in seven of the past eight results, including 3.3% on 6 August 2026 and 4.4% on 6 August 2025. The only decline among the listed past reactions was 3.0% on 13 August 2024.