Hero MotoCorp Q4 FY26: Broker targets up to Rs 6,793

What moved the stock

Hero MotoCorp shares saw sharp intraday moves after the company reported its January to March FY26 results and announced a final dividend. The stock rose as much as 3.3% to an intraday high of ₹5,281 on May 6, before giving up gains and sliding to an intraday low of about ₹4,950 in the same session, according to market updates cited in the report. In another update, the stock was quoted at ₹5,254.50 around 10:48 am, up 2.85% from a previous close of ₹5,109. A separate tick later in the day showed the stock trading near ₹5,042 at 12:15 pm. The price action came against a largely steady broader market, with one update noting the Nifty 50 rising about 0.12% at the time.

Q4 FY26 earnings in numbers

Hero MotoCorp reported a 30% year-on-year rise in net profit to ₹1,401 crore for Q4 FY26, compared with ₹1,081 crore in Q4 FY25. Revenue from operations increased 29% year-on-year to ₹12,797 crore in Q4 FY26, up from ₹9,939 crore a year ago. EBITDA for the quarter was reported at ₹1,856 crore in one update, up 31% year-on-year from ₹1,416 crore, while another update put quarterly EBITDA at ₹1,840 crore, up 30% year-on-year. EBITDA margin for Q4 FY26 was cited at 14.39% versus 14.24% year-on-year in one market note. The company sold 17.14 lakh motorcycles and scooters during the quarter, a 24% year-on-year increase.

Dividend announcement and FY26 headline figures

Alongside Q4 results, Hero MotoCorp declared a final dividend of ₹75 per equity share (face value ₹2), subject to shareholder approval. The company had already paid an interim dividend of ₹110 per share, taking the total dividend for FY26 to ₹185 per share. In the company’s FY26 disclosure cited in the text, revenue from operations for the year was ₹46,830 crore and profit after tax was ₹5,268 crore. Consolidated revenue for the year was reported at ₹47,411 crore, up 16% year-on-year, while consolidated profit after tax was ₹5,776 crore, up 32% over the previous year. The annual EBITDA margin was stated at 14.7%, an improvement of 30 basis points.

Demand, scooters and EV commentary highlighted in reports

Jefferies cited stabilising demand trends, recovery in market share, and improving medium-term prospects from both electric vehicles and the core internal combustion engine business while upgrading the stock. Another internal market commentary included in the supplied text said Q4 revenue growth was “strongly led” by scooter and EV growth trends and exports. It also stated that EV scooter volumes expanded 2.5 times year-on-year and scooter volumes grew 48% year-on-year, while exports increased 41% year-on-year to around 402,000 units. The same commentary referenced a Q4 margin of around 14.5% and reiterated the company’s medium-term margin guidance of 14% to 16%. Separately, March sales were cited at 5,98,198 units, up 8.8% year-on-year from 5,49,604 units, even as the stock was noted to have slipped on the day.

Margin pressure and pricing: what the management flagged

One report noted that Hero MotoCorp erased post-results gains and slipped from the day’s high after management flagged margin pressure. It also said management acknowledged a 2% price hike implemented in April was not sufficient to fully offset rising input costs. This comment helped explain why the stock’s reaction was mixed even after a strong year-on-year jump in quarterly profit. The tension between improving demand indicators and cost pressures featured repeatedly in broker notes shared in the supplied text.

Brokerage calls: upgrades, targets and a split view

Brokerage opinions in the text ranged from bullish to cautious. Jefferies upgraded the stock from ‘Underperform’ to ‘Hold’ and maintained a target price of ₹5,000, noting that EBITDA and profit gains were in line with estimates and that valuation at around 17x FY27E price-to-earnings looked reasonable after the stock fall. Motilal Oswal Financial Services reiterated a ‘Buy’ call with a target of ₹6,248 in a research report dated May 06, 2026, and said results were in line with estimates. JM Financial maintained a ‘Buy’ rating but cut its target price to ₹6,180, and said management expects the domestic two-wheeler industry to grow at a high single-digit rate in FY27 while keeping margin guidance at 14% to 16%. LKP Research and Choice Institutional Equities also issued ‘Buy’ ratings with targets of ₹6,039 and ₹6,000, respectively, both dated May 06, 2026.

Bearish calls and valuation guardrails

Not all brokerages turned positive. Goldman Sachs maintained a ‘Sell’ rating with a target price of ₹4,300 and said the quarterly performance was broadly in line with estimates, with sequential improvement in average selling prices driven by a richer product mix and price hikes. The text also referenced a Jefferies note that had retained an ‘underperform’ stance after results, focusing on sequential margin decline, even though another Jefferies update later upgraded the rating to ‘Hold’. In another market snapshot, Equirus Securities was mentioned as maintaining a ‘Hold’ rating, while the Street awaited the company’s concall for more cues.

Stock performance snapshots and analyst consensus

The supplied updates gave multiple time windows for returns. One note said the stock had gained more than 4% in a week and over 5% in a month, but was down nearly 9% in 2026 so far and up more than 37% over one year. Another market update said the stock had fallen 2.2% in a month, over 6% in six months, and lost 15% from the beginning of the year. A separate data point said the stock had risen 30.95% in the last 12 months but fallen 12.09% year-to-date. The one-year high was cited at ₹6,388.50 on December 5, 2025, and the 52-week low at ₹3,725 on May 2, 2025. Bloomberg data in the text said 29 of 43 analysts had a ‘buy’ rating, eight had ‘hold’, and six had ‘sell’, with an average 12-month consensus target price of ₹5,887.15.

Key numbers table

Why this matters for investors

The Q4 print put the focus back on Hero MotoCorp’s ability to grow profits while navigating a cost environment that management itself said is not fully covered by a recent price hike. At the same time, multiple notes pointed to improving product mix and sequential improvement in average selling prices, alongside market-share recovery in certain segments. Broker targets in the supplied text range widely, from ₹4,300 on the bearish end to ₹6,850 and ₹6,793 among the most bullish calls cited, showing how sensitive the thesis is to assumptions on demand stability and margins. Dividend payouts also became a key part of the narrative, with Jefferies calling a 4% dividend yield attractive in its note. The next set of cues, as referenced in the supplied report, was the company’s concall scheduled after the results announcement.