Hero MotoCorp Q3 FY26 Results: Revenue Soars 21% to Record ₹12,328 Crore

A Record-Breaking Quarter

Hero MotoCorp, the world's largest two-wheeler manufacturer, announced a landmark performance for the third quarter of fiscal year 2026, ended December 31, 2025. The company achieved its highest-ever quarterly revenue from operations, which stood at ₹12,328 crore. This represents a significant 21% year-on-year (YoY) increase, underscoring a period of strong operational execution and robust market demand. The performance was largely fueled by impressive sales during the festive season, a revival in rural demand, and successful new product launches across its portfolio.

Deep Dive into Financial Performance

The company's profitability metrics also showed substantial improvement. Profit After Tax (PAT) for the quarter rose by 12% YoY to ₹1,349 crore. However, this figure includes a one-time exceptional charge of ₹119 crore related to the government's notification of four new Labour Codes. Excluding this item, the normalised PAT stood at ₹1,439 crore, reflecting a more substantial 20% growth compared to the same period in the previous fiscal year. This highlights the underlying strength of the company's core operations. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter was ₹1,810 crore, a 23% increase YoY. The EBITDA margin expanded by 22 basis points to 14.7%, attributed to a favorable product mix, strategic pricing, and sustained operational efficiencies.

Sales Volume Driven by Festive Demand

Hero MotoCorp sold 16.97 lakh units of motorcycles and scooters in Q3 FY26, a notable 16% increase from the 14.64 lakh units sold in Q3 FY25. This double-digit volume growth was a key driver of the record revenue. The company reported its highest-ever festive season sales, which significantly contributed to this momentum. Furthermore, a revival in the rural economy provided a crucial tailwind, boosting demand for the company's popular commuter segment models. The strong retail performance indicates healthy consumer traction and effective market penetration.

Strategic Segments Show Strong Growth

Beyond its core business, Hero MotoCorp demonstrated significant progress in its strategic growth areas. The company's electric vehicle brand, VIDA, achieved a market share of 11% during the quarter, signaling growing acceptance in the competitive EV space. The international business also delivered a stellar performance, with exports rising by 41% YoY as the company expanded its global footprint to 52 countries, including new entries into European markets like Italy, Spain, and France. The Parts, Accessories, and Merchandising (PAM) business also set a new record, with its highest-ever quarterly revenue of ₹1,673 crore, growing 8% YoY.

Management on Operational Excellence

Vivek Anand, Chief Financial Officer (CFO) of Hero MotoCorp, commented on the results, stating, “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 noted that conducive macroeconomic factors and a favorable GST environment helped revive rural demand, which in turn drove consumer interest in motorcycles and contributed to broader economic growth. The management's commentary reinforces that the strong results are a product of a well-executed strategy.

Financial Health and Shareholder Returns

The company's balance sheet remains exceptionally strong, characterized by zero long-term debt and a net cash position. This financial fortitude provides significant flexibility for future investments in growth areas like electrification and premiumization. The company’s return on equity (ROE) stands at an impressive 25.15%, well above the industry average, showcasing its superior capital efficiency. Reinforcing its commitment to shareholder returns, the board approved a substantial interim dividend, reflecting confidence in its sustained cash generation capabilities.

Market Position and Competitive Landscape

Hero MotoCorp continues to dominate the Indian mass-market motorcycle segment while aggressively scaling its presence in the premium and EV categories. The expansion of its premium retail network, Hero Premia, to over 100 cities is a testament to this strategic push. While the two-wheeler industry is undergoing a transformation with rising EV penetration and a shift towards premium products, Hero's strong Q3 performance suggests it is navigating these changes effectively. The company's ability to defend its core market while investing in future growth drivers positions it well for the long term.

Future Outlook

Looking ahead, Hero MotoCorp is focused on its strategic pillars: growing its core business, winning in the premium segment, building leadership in the EV space, and diversifying revenue streams. The company's positive outlook is supported by a reshaped product portfolio, a strong financial position to fund investments, and early signs of success in its EV and global business ventures. Investors will be closely watching the company's ability to scale its EV operations and gain further traction in the premium motorcycle market as key indicators of future performance.