Hero MotoCorp Q3 Results: Record Revenue at ₹12,328 Cr

Introduction

Hero MotoCorp Limited, the world's largest two-wheeler manufacturer, announced a stellar financial performance for the third quarter ended December 31, 2025. The company reported its highest-ever quarterly revenue, driven by robust sales volumes during the festive season and a revival in rural demand. The board also declared a significant interim dividend, reinforcing its commitment to shareholder value, and approved strategic investments to bolster its presence in the electric vehicle market.

Record-Breaking Financial Performance

In Q3 FY26, Hero MotoCorp's revenue from operations surged by 21% year-on-year to ₹12,328.38 crore, a new quarterly record for the company. This growth was supported by a healthy increase in sales volumes and favorable product mix. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 23% to ₹1,811 crore, with the EBITDA margin expanding by 23 basis points to 14.69%.

The reported net profit after tax stood at ₹1,348.55 crore, a 12% increase from the corresponding quarter last year. This figure includes a one-time exceptional charge of ₹119 crore related to the implementation of new labour codes. Excluding this item, the normalized profit after tax was ₹1,439 crore, marking a substantial 20% year-on-year growth. The reported profit was slightly below the average analyst estimate of ₹1,390 crore.

Robust Volume Growth and Market Leadership

The strong financial results were underpinned by impressive operational performance. Hero MotoCorp sold 16.97 lakh units of motorcycles and scooters during the quarter, a significant 16% increase compared to the 14.64 lakh units sold in Q3 FY25. This growth was fueled by the company's best-ever festive season sales and a noticeable recovery in rural market sentiment.

The company successfully maintained its leadership position, gaining market share in the crucial 100cc-125cc motorcycle category. Popular models like Splendor, Glamour, and HF Deluxe continued to drive sales. The scooter segment also witnessed solid performance, with a 55% growth led by models such as Xoom, Destini, and Pleasure.

Commitment to Shareholder Returns

In a move that reflects its strong financial health and confidence in future prospects, the Board of Directors declared a substantial interim dividend of ₹110 per equity share. This translates to 5,500% of the share's face value of ₹2. The record date for the dividend has been set for February 11, 2026, with the payment scheduled to be completed by March 7, 2026.

Strategic Investments in Electric Mobility

Looking ahead, Hero MotoCorp is actively strengthening its foothold in the electric vehicle (EV) space. The board approved an additional investment of up to ₹275 crore in its associate company, Euler Motors Private Limited. Euler Motors specializes in designing and manufacturing electric three and four-wheeler vehicles. This investment, to be completed by April 30, 2026, will increase Hero MotoCorp's stake in the company to approximately 36% on a fully diluted basis. The company also approved smaller investments totaling ₹7.92 crore in solar power projects to promote renewable energy usage.

Management Commentary

Vivek Anand, Chief Financial Officer of Hero MotoCorp, commented on the performance, stating, "Hero MotoCorp 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." He added that conducive macroeconomic factors and a revival in rural demand were key drivers for consumer traction and economic growth.

Nine-Month Performance Summary

For the nine months ended December 31, 2025, the company's revenue from operations grew by 10% to ₹34,033.61 crore. During this period, it sold 47.55 lakh two-wheeler units and reported a normalized profit after tax of ₹3,957 crore, reflecting a 12% growth over the previous year.

Conclusion

Hero MotoCorp's third-quarter results highlight a period of strong growth, operational efficiency, and strategic foresight. The record revenue and robust profit growth, coupled with a generous dividend and key investments in the EV sector, position the company for sustained momentum. The revival in rural markets provides a positive outlook for the coming quarters.