On August 13, Hero MotoCorp reported a 36% increase in its standalone net profit for Q1 FY25, reaching Rs 1,122.63 crore compared to Rs 824.72 crore in the same quarter last year. This growth was fueled by robust sales, a resurgence in the rural market, and new launches such as the Xtreme 125R in the 125cc segment.
However, the results fell short of market expectations. The company’s revenue from operations for the quarter was Rs 10,144 crore, marking a 16% rise from Rs 8,767 crore in the previous year’s comparable period. This is the first instance of Hero MotoCorp’s revenue surpassing Rs 10,000 crore.
On a consolidated basis, the company reported revenue and profit after tax (PAT) of Rs 10,211 crore and Rs 1,032 crore, respectively. The firm’s EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 21% to Rs 1,460 crore, and its operating margin improved by 60 basis points to 14.4%.
Hero MotoCorp, the largest two-wheeler manufacturer globally, noted positive trends across its domestic, electric vehicle (EV), and international markets. It also saw sequential growth in retail sales (as per VAHAN data). The company expects this momentum to continue in the upcoming quarters due to favorable customer sentiment, good monsoons, and the approaching festive season. It plans several new product launches in both internal combustion engine (ICE) and EV categories.
Niranjan Gupta, CEO, highlighted a strong recovery in the 125cc segment, driven by the new Xtreme 125 cc model. The company maintains a dominant market share of over 70% in the entry and deluxe 100/110 cc segments, supported by popular models like the Splendor, Passion, and HF Deluxe. Looking ahead, Hero MotoCorp aims to strengthen its presence in the premium segment and is preparing to introduce new scooter models to revitalize this segment.
Regarding EV sales, Gupta mentioned that the Vida brand is gaining traction and market share, with plans to expand into the affordable segment within this fiscal year. The favorable economic indicators in India and supportive policies in the union budget are expected to boost demand. With easing inflationary pressures, consumer spending power is anticipated to rise, which should enhance momentum for the upcoming festive season.
Gupta expressed optimism about the demand outlook for the forthcoming quarters, stating, “Our product launches and strategic initiatives are well-positioned to leverage this positive market environment, ensuring sustained growth and value creation for all stakeholders.”
Hero MotoCorp is a leading global two-wheeler manufacturer, renowned for its innovative motorcycles and scooters. Headquartered in India, the company excels in both internal combustion engine (ICE) and electric vehicles (EVs). With a strong market presence and a focus on new product launches and expanding its premium and EV segments, Hero MotoCorp drives growth and industry leadership.
