Hero MotoCorp Q2 FY27 Profit Rises 41% to ₹1,861 Crore

Quarterly performance at a glance

Hero MotoCorp reported consolidated net profit of ₹1,860.55 crore for the September quarter of FY27, up 40.85% from ₹1,320.98 crore in Q2 FY26. Net profit attributable to owners of the company was ₹1,861.33 crore, rising 41.03% from ₹1,308.89 crore a year earlier. Consolidated revenue from operations increased 22.52% year-on-year to ₹14,970.50 crore from ₹12,218.39 crore. The performance came alongside higher standalone sales volumes and growth in the company’s scooter and electric-vehicle portfolios. The company announced the results after its board meeting on October 28, 2026. The quarter covered the July-September 2026 period.

Consolidated income rises with operating scale

Total consolidated income stood at ₹15,172.00 crore in Q2 FY27, compared with ₹12,458.78 crore in the corresponding quarter of FY26. Revenue growth was supported by higher sales volumes across motorcycles and scooters. The company reported standalone sales of 18.68 lakh units during the quarter, up 10.47% from 16.91 lakh units in Q2 FY26. Higher volume helped lift revenue even as the company faced commodity-related cost pressure. Consolidated profit before exceptional items and tax rose to ₹2,361.39 crore from ₹1,776.88 crore. The results also included a gain of ₹397 crore from the equity consolidation of an associate following its capital raise.

Standalone revenue crosses ₹14,600 crore

Standalone revenue from operations rose 21.12% to ₹14,687.43 crore in Q2 FY27, from ₹12,126.37 crore a year earlier. Standalone net profit increased 4.55% to ₹1,456.22 crore from ₹1,392.83 crore. The difference between the pace of revenue and profit growth reflects the rise in operating expenses during the quarter. Total standalone expenses increased to ₹12,942.21 crore from ₹10,505.53 crore in Q2 FY26. The reported numbers indicate that greater sales scale was accompanied by higher input and operating costs. Standalone performance remains important because it captures the core domestic manufacturing and sales operations.

Costs increased during the September quarter

Total consolidated expenses rose 25% year-on-year to ₹13,227.99 crore from ₹10,583.87 crore. Raw-material costs increased to ₹10,186.65 crore, compared with ₹8,067.06 crore in the year-ago quarter. These higher costs were recorded despite the company maintaining reported EBITDA margin at 13.4%. Hero MotoCorp reported EBITDA of ₹1,968 crore, an 8% increase over the prior-year period. Tax expense for the quarter was ₹500.84 crore. This included current tax of ₹549.99 crore and a deferred tax credit of ₹49.15 crore.

Key Q2 FY27 financial metrics

Scooter portfolio records higher volume

The company said its scooter portfolio grew 47% year-on-year to 2.40 lakh units in Q2 FY27. Its internal-combustion-engine scooter market share improved, led by the Destini and Xoom series. This growth added to the broader increase in motorcycle and scooter volumes during the quarter. The company attributed the overall performance to sustained consumer demand across markets and segments. Parts, accessories and merchandising revenue also grew 27% year-on-year to ₹1,941 crore. These categories add revenue streams beyond vehicle sales and support the company’s wider product ecosystem.

VIDA retail volumes expand

Hero MotoCorp’s VIDA electric portfolio recorded 76% year-on-year retail growth during the quarter, reaching 66,531 units. The reported electric-vehicle retail figure reflects the company’s presence in the expanding two-wheeler EV category. The core business, however, continued to be led by motorcycles and internal-combustion-engine scooters. The Q2 figures show growth across conventional scooters, motorcycles, parts and electric vehicles. The company did not provide a separate revenue or profitability figure for VIDA in the information available. As a result, the financial contribution of the EV business cannot be separately assessed from these results.

Half-year figures provide broader context

For the first half of FY27 ended September 2026, Hero MotoCorp reported consolidated revenue of ₹28,097 crore. This was 28% higher year-on-year. Consolidated profit after tax for the half year was ₹3,278 crore, up 8% from H1 FY26. The half-year numbers place the September-quarter increase within a period of higher revenue growth for the company. In the preceding June 2026 quarter, consolidated sales were ₹13,126 crore and net profit was ₹1,418 crore, according to figures cited from company filings. Q2 therefore showed higher consolidated revenue and profit than the immediately preceding quarter.

Investment approved for overseas subsidiaries

The board approved an additional investment of up to ₹300 crore in wholly owned subsidiary HMCL Netherlands B.V. The investment will be made in tranches over two years. The funds are intended for HMCL Netherlands B.V.’s step-down subsidiaries, HMCL Colombia S.A.S. and Hero MotoCorp Do Brasil Ltda. The approval identifies continued funding support for the company’s overseas entities. No quarter-specific financial impact from this investment was stated in the available information. The deployment will take place over the approved two-year period.

What the results mean for investors

Hero MotoCorp’s Q2 FY27 results showed strong consolidated revenue growth, higher unit volumes and a sharp increase in reported consolidated profit. At the same time, the 25% increase in consolidated expenses and higher raw-material costs remain relevant to profitability. Scooter sales and VIDA retail growth provided additional operating indicators beyond the company’s motorcycle base. The associate-consolidation gain of ₹397 crore is also relevant when reviewing the quarter’s profit growth. Investors will continue to track volume trends, input costs, margins and the progress of the overseas investment plan in future disclosures. The next set of reported results will provide further visibility on whether the revenue and volume momentum continues.