Hero MotoCorp FY26: Dispatches up 40% in Dec 2025

A broader FY26 rebound sets the backdrop

India’s two-wheeler market saw a clear volume recovery in FY26, with industry volumes rising to 21.71 million units, up 26.4% year-on-year. Growth was uneven across segments, with scooters outperforming motorcycles on a percentage basis. Motorcycle sales increased 6.6% to 13.06 million units, while scooter sales grew 18.5% to 8.12 million units.

For manufacturers, this shift matters because scooters tend to be more urban-led and are also where electric adoption is currently more visible. The FY26 mix points to stronger demand momentum outside the traditional commuter motorcycle category. Against this backdrop, Hero MotoCorp reported strong monthly and quarterly dispatch trends, supported by festive season demand and new launches.

December 2025 dispatches jump 40% year-on-year

Hero MotoCorp ended December 2025 with dispatches of 456,479 units, up 40% from 324,906 units in December 2024. The company attributed the performance to continued festive momentum, new product activity, and traction across its internal combustion engine (ICE) and electric portfolios.

Domestic dispatches stood at 419,243 units, while exports contributed 37,236 units. Exports grew 21% year-on-year in December, indicating that overseas markets also added to incremental volumes during the month.

The company also reported 291,732 VAHAN registrations in December 2025, a data point often tracked to gauge retail traction in the market.

Q3FY26 volumes rise 16% on YoY basis

For Q3FY26 (October to December 2025), Hero MotoCorp reported total dispatches of 16.97 lakh units, compared with 14.64 lakh units in the year-ago period, a growth of 16%. Within this, motorcycle volumes were reported at 15.12 lakh units, while scooter dispatches stood at 1.85 lakh units.

The company’s update positioned scooters as a key growth driver during the quarter. It also pointed to a strong response to new model launches across portfolios as a contributor to volume momentum.

Scooters and new ICE launches become a major lever

Hero MotoCorp said the ICE scooter segment witnessed a 45% growth during the quarter, led by new models including Destini 110, Destini 125, Xoom 125, and Xoom 160. This matters in the context of the broader FY26 market trend where scooters grew faster than motorcycles.

In addition to scooters, the company has been refreshing its motorcycle line-up as well. Among the launches highlighted in the provided information is the Glamour X 125, introduced to strengthen presence in the deluxe commuter segment. The model is priced between ₹89,999 (drum) and ₹99,999 (disc), ex-showroom Delhi.

Global business shows steady traction

Hero MotoCorp’s global business recorded dispatch growth of 21% in December 2025, with overseas volumes at 37,236 units versus 30,754 units a year ago. During Q3FY26, the company reported 41% growth in exports, supported by new market entries and portfolio expansion.

The data indicates that exports were not just a background contributor but a meaningful component of growth during the quarter. This is relevant as domestic demand can be seasonal, and overseas volumes can help diversify the dispatch profile.

Vida EV updates: registrations, share and capacity plan

Hero MotoCorp’s electric mobility arm, Vida, reported 10,701 VAHAN registrations in December 2025. It also closed the year with an estimated 11% market share, driven by demand for the VX2 EVOOTER, as per the information provided.

The company also expanded the portfolio with the launch of the DIRT.E K3, described as a size-adaptive electric motorcycle for young riders, with retail sales expected to begin in mid-January 2026.

Separately, the provided details state that by the end of the year, the company plans to double its EV capacity to over 50,000 units per month. While the statement does not provide a base capacity figure in the text, the target level signals an intent to scale up EV readiness.

Financial snapshot for the December quarter

For the December quarter, the company reported revenue of ₹12,487 crore and profit after tax (PAT) of ₹1,275 crore. These figures provide context to the volume performance, especially as product mix and the pace of scooter and EV growth can influence margins and operating leverage.

The company’s Q3 dispatch figure of 16.97 lakh units, versus 14.64 lakh units in the prior-year period, aligns with the period referenced for the quarterly financials.

Other FY26 datapoints: July and August dispatch trends

Beyond December, the supplied data includes monthly operating indicators earlier in FY26. In July 2025, Hero MotoCorp dispatched 449,755 units, a 21% year-on-year growth, with motorcycles at 400,615 units and scooters at 49,140 units. Domestic dispatches were 412,397 units, while exports were 37,358 units. Retail registrations were reported at 339,827 units for July.

In August 2025, the company reported an 8% growth in dispatches at 553,727 units. It also reported 3.44 lakh registrations (excluding Telangana) based on VAHAN data. Vida dispatched 12,275 units with 13,313 VAHAN registrations in August, as per the provided information.

Key numbers at a glance

Market impact: what the numbers say about demand and mix

The FY26 industry split shows scooters growing faster than motorcycles, and Hero MotoCorp’s updates repeatedly point to scooters as an incremental growth driver. A 45% rise in the ICE scooter segment during Q3FY26, along with new scooter launches, ties into this market-wide trend.

At the same time, the company’s continued export growth in December 2025 and the 41% export growth referenced for Q3FY26 indicate that overseas markets are contributing more meaningfully to dispatch momentum. On the EV side, Vida’s VAHAN registrations and the stated market share estimate provide measurable markers of traction, even as the company discusses capacity expansion.

Analysis: why this matters for investors tracking the sector

Two datapoints stand out from the information provided. First, the industry’s scooter growth rate (18.5%) is well ahead of motorcycles (6.6%) in FY26, which can influence product strategy, marketing spend, and dealer focus for large OEMs. Hero’s emphasis on new scooter models and reported scooter-led growth in the quarter fits this shift.

Second, Hero’s December 2025 dispatch jump to 456,479 units and the Q3FY26 total of 16.97 lakh units provide an operational read-through for the company’s festive-season execution. The revenue of ₹12,487 crore and PAT of ₹1,275 crore for the December quarter add financial context to the dispatch and registration trends.

Conclusion

Hero MotoCorp’s December 2025 dispatch performance and Q3FY26 growth underline improving demand conditions in FY26, especially with scooters and exports supporting volumes. The company’s Vida updates and stated plan to scale EV capacity to over 50,000 units per month signal continued emphasis on electric mobility. Next milestones to watch from the information provided include the mid-January 2026 start of retail sales for the DIRT.E K3 and further monthly dispatch and registration trends.