Hero MotoCorp Q3FY26 Results: Profit Soars 15% to ₹1,275 Crore

Introduction

Hero MotoCorp, India's largest two-wheeler manufacturer, announced a strong performance for the third quarter of the financial year 2025-26. The company reported a 15% year-on-year increase in its consolidated profit after tax (PAT), which stood at ₹1,275 crore for the October-December 2025 period. This growth was underpinned by a significant rise in sales volumes across both domestic and international markets, reflecting healthy consumer demand and operational efficiency.

Detailed Financial Performance

The company's financial results for Q3 FY26 showcased robust growth compared to the same period in the previous fiscal year. Revenue from operations surged to ₹12,487 crore, a substantial increase from the ₹10,260 crore recorded in Q3 FY25. The consolidated net profit of ₹1,275 crore is a notable improvement over the ₹1,108 crore profit reported in the corresponding quarter of the last fiscal.

On a standalone basis, the company's net profit grew by 12% to ₹1,349 crore for the quarter. This figure was adjusted for a one-time charge of ₹119 crore related to the implementation of the New Labour Code. The company's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter rose by 23% to ₹1,810 crore, with the EBITDA margin expanding by 22 basis points to 14.7%. This margin improvement was attributed to a favorable product mix, strategic pricing actions, and sustained operational efficiencies.

Sales Volume Drives Growth

A key driver behind the strong financial results was the impressive growth in vehicle sales. Hero MotoCorp sold 16.97 lakh units of motorcycles and scooters during the third quarter, marking a 16% increase from the 14.64 lakh units sold in the same period of the previous year. This double-digit volume growth indicates strong consumer traction, particularly fueled by a positive festive season and a noticeable revival in rural demand.

Management Commentary

Vivek Anand, Chief Financial Officer at Hero MotoCorp, commented on the performance, stating, "The company delivered a positive growth performance in Q3 FY26 with healthy double-digit growth in volumes and retail momentum. Steady focus on operational excellence, product mix optimisation, consumer-centricity and innovation remained our core pillars enabling consistent financial performance during the quarter." He further added that conducive macroeconomic factors and favorable GST policies helped revive rural demand, which in turn drove consumer interest in motorcycles and contributed to economic growth.

Key Financial Highlights

Shareholder Returns and Strategic Investments

In a move that reflects confidence in its financial health and future prospects, the Hero MotoCorp board declared a significant interim dividend of ₹110 per share for the financial year 2025-26. The company confirmed that the dividend payment would be completed by March 7, 2026.

Furthermore, the board approved an additional strategic investment of ₹275 crore in Euler Motors Pvt Ltd. This investment, to be made in one or more tranches, underscores Hero MotoCorp's commitment to expanding its footprint in the electric vehicle (EV) segment.

Market Reaction and Outlook

The financial results were largely in line with analyst expectations, which had projected a healthy performance aided by strong festive demand and price hikes. Despite the strong earnings report, the company's shares on the BSE ended the trading day on February 5, 2026, at ₹5,768.80, down 1.51%. This movement could be attributed to broader market trends or profit-booking by investors following the announcement.

Looking ahead, the company's focus remains on maintaining its growth momentum. The revival of the rural economy is a positive indicator for the two-wheeler industry, and Hero MotoCorp is well-positioned to capitalize on this trend. Strategic investments in areas like electric mobility are expected to secure its long-term growth trajectory.

Conclusion

Hero MotoCorp's Q3 FY26 results highlight a period of strong operational and financial success. Driven by a significant uptick in sales volume and improved margins, the company has demonstrated its resilience and market leadership. The generous dividend payout and strategic investment in the EV space signal a balanced approach towards rewarding shareholders while investing in future growth avenues.