Company expects strong wedding-season demand and continued momentum in scooters and premium motorcycles, but sees moderation to high-single-digit growth in FY27 due to a higher base.
06 Feb 2026 | 329 Views | By Darshan Nakhwa and Anurag Chaturvedi
Hero MotoCorp Ltd expects the domestic two-wheeler industry to post double-digit growth in the March quarter and moderate to high-single-digit expansion in FY27, supported by GST-led recovery, improving rural demand and traction across scooters and premium motorcycles.
India’s largest two-wheeler manufacturer said demand momentum has remained strong since October ...
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Hero MotoCorp Ltd expects the domestic two-wheeler industry to post double-digit growth in the March quarter and moderate to high-single-digit expansion in FY27, supported by GST-led recovery, improving rural demand and traction across scooters and premium motorcycles.
India’s largest two-wheeler manufacturer said demand momentum has remained strong since October and is likely to stay firm through the remainder of the current financial year.
“We remain confident about the growth prospects of the two-wheeler industry and expect the industry to grow by double-digit during the current quarter,” Vivek Anand, Chief Financial Officer at Hero MotoCorp, said during an analyst call held to discuss the company’s Q3 FY26 performance.
He added that while momentum is expected to continue into the next fiscal year, growth is likely to moderate due to a higher base. “Overall, the industry for the next financial year is likely to grow in high single digits,” Anand said.
Broad-based Demand Momentum
Hero MotoCorp’s management said demand has strengthened across both rural and urban markets after GST-led price rationalisation unlocked pent-up purchases and improved affordability.
Ashutosh Varma, Chief Business Officer for India, said growth is visible across geographies, with urban markets currently moving faster due to income-tax benefits and improving consumer sentiment. “Both rural and urban markets are growing strongly. Urban has more things going its way and has started moving a little faster,” Varma said.
Rural markets, however, delivered strong festive-season demand and are expected to remain supportive as the wedding season gathers pace in the March quarter. “As we see the wedding season unfolding and early festivals setting in from March, we expect the later part of quarter four to be strong from a rural perspective,” he said.
Varma added that volatility in monthly volumes during the December quarter was largely due to the early festive season this year. “Overall, from a quarter-three perspective, the growth has been very robust and we continue to see that momentum into quarter four,” he said.
Industry volumes grew in high double digits in January, and the company expects this trend to continue through the quarter, supported by seasonal demand and improving sentiment.
Scooters, Premium Bikes Lead
Hero MotoCorp said growth is now broad-based across segments, though scooters, premium motorcycles and electric vehicles are expected to outpace the rest of the market.
Chief Executive Officer Harshavardhan Chitale said macro trends such as urbanisation, rising female workforce participation and growth in the gig economy are supporting scooter demand.
“If these macro trends continue, scooters may have a higher growth rate going forward versus motorcycles,” Chitale said. “We need to grow much faster here and be a bigger player in this category.”
Management also expects premium motorcycles to continue gaining share as incomes rise and customers upgrade to higher-value products. At the same time, entry-level motorcycles have begun to recover.
“Across segments, we are seeing growth. After many years, we also saw strong growth in entry and core motorcycles,” Chitale said. He added that GST-led price benefits and improving rural sentiment are supporting recovery in these categories.
Anand said the company is witnessing strong growth in electric vehicles as well, with demand improving for scooters. “Growth is across all segments. Some segments are likely to grow faster. Scooters, both ICE and EV, and premium will grow faster than the rest,” he said.
Five Growth Pillars
Hero MotoCorp said it sees significant headroom for growth and market-share gains across five key areas: scooters, premium motorcycles, exports, electric mobility and parts and accessories.
Chitale said these segments will be central to the company’s growth strategy over the next few years. “Each of these five are going to be big opportunities of growth, and this is where we are focused on accelerating and gaining share,” he said.
The company also plans to strengthen its supply chain and customer-centric initiatives to support growth. Management said recent disruptions in components and geopolitics highlight the need for a flexible and resilient supply chain.
“We need to be always prepared and make sure we are agile and have a robust supply chain,” Chitale said. “Customer centricity will remain a key focus across pre-sales, post-sales and product experience.”
Hero MotoCorp added that it will continue to invest in premium products, scooters, EVs and global markets as part of its long-term strategy. Anand said the company aims to grow ahead of the industry through new launches and brand investments.
Q3 Performance
Hero MotoCorp reported strong growth across key financial parameters in the December quarter, supported by festive demand, product mix improvement and export growth.
Revenue from operations rose 21% year-on-year to ₹12,328 crore, while EBITDA increased 23% to ₹1,810 crore. Margins expanded to 14.7%, driven by better mix and operational efficiencies.
Normalised profit after tax grew 20% to ₹1,439 crore, while reported profit stood at ₹1,349 crore after accounting for a one-time charge related to new labour codes.
Volumes during the quarter rose 16% to 16.97 lakh units, supported by strong demand for scooters, exports and electric vehicles. Scooter sales grew 55% year-on-year, aided by models such as Xoom and Destini, while exports surged 41%.
Looking ahead, the company expects demand to remain healthy in the near term, supported by new product launches, improving rural incomes and continued traction in scooters, exports and EVs.
“We expect to grow ahead of the industry,” Anand said, adding that the company’s growth strategy is focused on capturing opportunities across segments while maintaining cost discipline and customer focus.