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

Hero MotoCorp reported a 41% year-on-year rise in consolidated profit after tax to Rs 1,861 crore in Q2 FY27, supported by 23% growth in consolidated revenue to Rs 14,971 crore. The July-September performance reflected higher vehicle volumes, strong scooter demand and growth across premium, electric mobility and international operations, although commodity costs reduced operating-margin expansion.

How did Hero MotoCorp perform in Q2 FY27?

Hero MotoCorp delivered higher consolidated revenue and profit in the quarter ended September 30, 2026. Consolidated revenue from operations increased to Rs 14,970.50 crore from Rs 12,218.39 crore in Q2 FY26, while consolidated net profit attributable to owners rose to Rs 1,861.33 crore from Rs 1,308.89 crore.

The reported profit growth was stronger than the rise in operating earnings on a standalone basis. Standalone revenue from operations rose 21.12% to Rs 14,687.43 crore, compared with Rs 12,126.37 crore a year earlier. Standalone net profit grew 4.55% to Rs 1,456.22 crore from Rs 1,392.83 crore.

The company reported total consolidated income of Rs 15,172.00 crore for the quarter, against Rs 12,458.78 crore in the corresponding period of FY26. Consolidated expenses increased 25% year-on-year to Rs 13,227.99 crore, reflecting higher input and operating costs alongside the expansion in sales.

What drove Hero MotoCorp's revenue growth?

Hero MotoCorp's revenue growth was supported by a 10.47% increase in quarterly sales volume to 18.68 lakh motorcycles and scooters. The company sold 16.91 lakh units in Q2 FY26, making volume growth a major contributor to the higher revenue base.

Scooters were the fastest-growing vehicle category. Scooter sales rose 47.3% year-on-year to 2.40 lakh units from 1.62 lakh units. Motorcycle sales increased 6.5% to 16.28 lakh units from 15.28 lakh units, showing that the core motorcycle business also expanded during the quarter.

The company cited performance in premium products, scooters, electric mobility, global business and commuter motorcycles as contributors to the quarterly outcome. Revenue was also supported by product mix improvement and pricing action, according to the reported standalone performance.

Hero MotoCorp's Parts, Accessories and Merchandising business recorded revenue of Rs 1,941 crore, up 27% year-on-year. This business adds a non-vehicle revenue stream and benefited from the company's growing vehicle base and related customer demand.

Why did Hero MotoCorp's operating margin decline?

Hero MotoCorp's standalone EBITDA margin declined to 13.4% in Q2 FY27 from 15.0% in the year-earlier quarter because of commodity headwinds. EBITDA rose 8% to Rs 1,968 crore, but this growth was lower than the 21% increase in standalone revenue.

Raw-material costs rose to Rs 10,186.65 crore in Q2 FY27 from Rs 8,067.06 crore a year earlier. Total standalone expenses increased to Rs 12,942.21 crore from Rs 10,505.53 crore. These increases show the cost pressure faced during a period of higher production and sales.

The margin movement is important because it separates sales growth from operating profitability. While vehicle volumes, scooter sales and revenue increased, the reported figures show that input-cost pressure absorbed part of the benefit from the larger revenue base.

Standalone earnings per share was reported at Rs 72.69, below analyst estimates of Rs 75.16 cited in the source material. The comparison highlights that the quarter's revenue expansion and reported consolidated profit growth did not fully offset market expectations for standalone earnings.

How are electric mobility and investments shaping operations?

Hero MotoCorp's electric mobility brand, VIDA, recorded 76% year-on-year growth in retail sales to 66,531 units during Q2 FY27. The reported growth indicates that electric vehicles contributed to the company's wider sales momentum during the quarter.

The company also announced cumulative investments of more than Rs 3,200 crore in Andhra Pradesh. It laid the foundation stone for its second Global Parts Centre in Tirupati, adding to its parts and distribution infrastructure plans.

These initiatives accompany the expansion of Hero MotoCorp's scooter, premium and international businesses. The reported financial results do not provide a separate revenue or profitability figure for each of these segments, but the company identified them as contributors to its broader quarterly performance.

For investors, the operational data presents two connected trends. Sales growth is broad-based across motorcycles, scooters and electric mobility, while the planned Andhra Pradesh investment and new parts centre point to further capacity and supply-chain development.

Conclusion

Hero MotoCorp's Q2 FY27 results combined 23% consolidated revenue growth with a 41% increase in consolidated profit attributable to owners, led by sales of 18.68 lakh vehicles. Scooter volumes, VIDA retail sales and Parts, Accessories and Merchandising revenue were notable growth drivers, while higher raw-material costs contributed to a 160-basis-point decline in standalone EBITDA margin.

The next areas to watch are whether commodity costs continue to affect operating margins, the progress of the more than Rs 3,200 crore Andhra Pradesh investment programme, and the development of the second Global Parts Centre in Tirupati. Reported sales trends in scooters, electric mobility and motorcycles will remain relevant to assessing the durability of revenue growth.