Hero MotoCorp Fires on All Cylinders in Q3 FY26 on Strong Festive Demand

Hero MotoCorp reported strong growth in key earnings parameters for the December quarter, driven by robust festive demand, an improved product mix, and growth across scooters, exports and electric vehicles.

The company posted revenue from operations of ₹12,328 crore in Q3 FY26, registering a growth of 21% year-on-year. The parts, accessories and merchandising business recorded its highest-ever quarterly revenue at ₹1,673 crore.

Normalised profit after tax—before considering the one-time impact of an exceptional item—rose 20% to ₹1,439 crore. Reported profit after tax stood at ₹1,349 crore, up 12% year-on-year, after accounting for a one-time charge of ₹119 crore related to the implementation of new labour codes.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23% year-on-year to ₹1,810 crore, with margins expanding by 22 basis points to 14.7%, supported by a favourable product mix, pricing actions and operational efficiencies.

On a consolidated basis, revenue for the quarter was ₹12,487 crore and net profit was ₹1,275 crore. The board declared an interim dividend of ₹110 per share for FY26.

Volume growth led by scooters, exports and EVs

In the December quarter, India’s largest two-wheeler maker’s sales grew 16% year-on-year to 16.97 lakh units. Growth during the quarter was supported by a strong festive season, new launches across segments, recovery in rural demand and a 41% jump in exports. The ICE scooter portfolio posted 55% growth, aided by demand for models such as Xoom and Destini.

The company also reported strong momentum in exports, which grew 41% year-on-year, supported by new market entries and portfolio expansion.

Hero’s electric mobility arm, VIDA, continued to scale up, closing the quarter with an 11% market share.

For the April–December period, Hero MotoCorp sold 47.55 lakh units, while revenue rose 10% year-on-year to ₹34,034 crore. EBITDA stood at ₹5,015 crore, up 13%. Normalised PAT rose 12% to ₹3,957 crore, while reported PAT grew 10% year-on-year to ₹3,867 crore.

Management said the December quarter’s performance was supported by favourable macroeconomic conditions, GST rate changes and a revival in rural demand, which drove retail momentum across motorcycle categories.

The company expects demand momentum to remain supported by product launches, improving rural sentiment and continued traction in scooters, exports and electric mobility.