Hero MotoCorp Q1 FY26 Results: Stable Profit Despite Revenue Dip; Export Growth and Ather Gains Drive Consolidated Earnings

Hero MotoCorp, India’s largest two-wheeler manufacturer, reported a steady financial performance for the quarter ended June 2025, with net profit remaining flat despite a notable decline in revenue. The company’s Q1 FY26 standalone net profit came in at ₹1,126 crore, almost unchanged from ₹1,123 crore in the same quarter last year. However, its consolidated profit rose sharply, aided by a significant one-time gain from dilution of its stake in EV startup Ather Energy.

The domestic two-wheeler market showed signs of softness during the quarter, as demand in entry-level commuter segments remained sluggish. Dispatches for the quarter fell by nearly 11% YoY, driven by weak rural demand and delayed festive season triggers. However, the company managed to cushion the impact through a 26% growth in exports, which contributed positively to both volumes and margins.

Revenue from operations slipped to ₹9,579 crore, a 5.6% drop compared to the previous year, impacted by lower volumes and product mix. Despite this, operational efficiency and cost control helped the company maintain a healthy EBITDA of ₹1,382 crore, with margins holding firm at 14.4%.

Hero’s consolidated profit after tax stood at ₹1,706 crore, up significantly from last year, thanks to a ₹722 crore gain from its strategic dilution in Ather Energy. This not only boosted short-term profitability but also reinforced the long-term value creation from its EV investments.

Looking forward, the management remains cautiously optimistic. With the festive season ahead, improved monsoon conditions, and a pipeline of refreshed models — including premium motorcycles and VIDA EV variants — Hero expects demand to pick up. The company also highlighted its focus on expanding international markets and increasing the share of electric and premium offerings in the product mix.

📊 Key Financial Highlights – Hero MotoCorp (Q1 FY26):

• Standalone Net Profit: ₹1,126 crore (vs ₹1,123 crore in Q1 FY25)

• Consolidated Net Profit: ₹1,706 crore (includes ₹722 crore Ather gain)

• Revenue from Operations: ₹9,579 crore (down 5.6% YoY)

• EBITDA: ₹1,382 crore

• EBITDA Margin: 14.4% (vs 14.39% in Q1 FY25)

• Total Dispatches: ~13.67 lakh units (down ~11% YoY)

• Export Volume Growth: +26% YoY

• Domestic Volume Drop: –12% YoY

source:-hindustan times, economic time