Hero MotoCorp shares race 6% as entry-level motorcycles bounce back in Q4

The Hero MotoCorp stock opened at ₹4,076.90 against its previous closing price of ₹4,066.90. It rose 5.6% in intraday trade to hit a high of ₹4,295.40 on the BSE, taking the company’s market

cap to over ₹85,700 crore.

“Overall, we expect the industry to grow in mid and high single digits in FY26... Hero MotoCorp aims to outpace the industry’s volume growth,” said Vikram S Kasbekar, Executive Director and

Acting Chief Executive Officer, Hero MotoCorp.

“We have seen a strong bounce back in the entry segment. In the 125 cc motorcycles, Hero continued to outperform the category,” said Kasbekar.

Kasbekar said tapering inflation, lower interest rates,  income tax cuts and expectations of a better monsoon will act as tailwinds for the company.

In the electric vehicle (EV) business, Hero MotoCorp gained market share during the fourth quarter and exited March at 7% share, said Kasbekar. “The EV business is on a sustained growth

curve helped by investments behind the brand building, pricing interventions and the launch of the VIDA V2 scooter,” he said.

The two-wheeler maker’s net profit rose 6% year-on-year to ₹1,081 crore for the quarter ended March 31, 2025. The automaker’s revenue from operations increased 4% to ₹9,939 crore compared to

₹9,519 crore in the same period last year.

The company reported an Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of ₹1,416 crore for the fourth quarter of FY25, marking a 4% increase compared to the same

period last year. The EBITDA margin for the full year reached 14.4%, up by 40 basis points year-on-year, supported by a favourable product portfolio, improved cost efficiency, and lower

commodity prices.

A final dividend of ₹65 per equity share was announced by the company. When combined with the interim dividend of ₹100 per share, the total dividend payout for FY25 comes to ₹165 per equity

share.

Hero MotoCorp advanced its premiumisation efforts in FY25 with the rollout of multiple new models, including the Xtreme 250R, Xpulse 210, and the 2024 version of the Xtreme 160R 2V. In the

scooter category, the company strengthened its market presence with the launch of the New Destini 125, Xoom 125, and Xoom 160, expanding its already diverse portfolio.

“Our success during the year was underpinned by robust growth across the premium, scooter, and EV segments, fuelled by several new product launches. Export volumes outpaced industry trends,

and we further expanded our premium retail footprint across India while entering new global markets. We are observing strong retail traction, especially in our new premium and scooter

offerings. Continued consolidation in the core segment, growth in the 125cc category, and the upcoming EV launch position us well for sustained momentum,” said Kasbekar.

Hero MotoCorp recently acquired a 34.1% stake in Euler Motors with an investment of ₹510 crore, making Euler an associate company of Hero MotoCorp. Through this, it has marked its entry into

fast-growing EV three-wheeler category.