Hero MotoCorp's profit decline masks strong sales momentum and expanding electric mobility push

Hero MotoCorp reports a 16.86% fall in consolidated profit after tax for Q1, but highlights a 23% rise in motorcycle and scooter sales, alongside growth in electric and premium segments, signalling a resilient start to FY27 amid challenging domestic demand.

Hero MotoCorp said consolidated profit after tax fell 16.86% to ₹1,417.93 crore in the quarter ended June 30, as the prior-year base was lifted by a one-time gain. The company had reported ₹1,705.65 crore a year earlier, when results included a ₹722 crore benefit from dilution of its stake in associates following a public issue and private placement, according to the company’s statement. Revenue from operations rose to ₹13,126.35 crore from ₹9,727.75 crore a year ago, even as total expenses increased to ₹11,621.48 crore from ₹8,541.12 crore.

Sales momentum improved during the quarter, with Hero MotoCorp saying it sold 16.77 lakh motorcycles and scooters, up 23% from a year earlier. Revenue from its parts, accessories and merchandising business reached ₹1,689 crore, a rise of 30%, while the company said growth was broad-based across premium motorcycles, electric mobility, commuter models and overseas business. Chief executive Harshavardhan Chitale said the company had begun FY27 with strong momentum, according to the statement.

The quarterly update comes after LiveMint reported that the company’s standalone profit was almost flat at ₹1,126 crore, helped by stronger exports and higher vehicle prices even as domestic demand remained soft. That report said standalone revenue fell 5.5% to ₹9,579 crore, while EBITDA margin held at 14.4% through cost control and a richer product mix. On a consolidated basis, the earlier increase in profit last year was also flattered by the Ather Energy-related one-time gain, making this year’s comparison less favourable.