Hero MotoCorp Q4FY26 profit jumps 26% on GST cuts

Key takeaway

Hero MotoCorp reported a strong March-quarter (Q4FY26) performance, with profit and income rising sharply as demand improved after GST rate rationalisation in September. The company also highlighted broad-based growth across its internal combustion engine (ICE) portfolio, a record year in global business, and rising momentum in its electric mobility arm, Vida.

Q4FY26 numbers: profit up 26.1% year-on-year

Hero MotoCorp’s consolidated net profit rose 26.1% year-on-year to ₹1,474 crore in Q4FY26 (January to March). Total income increased to ₹13,188 crore from ₹10,244 crore in the year-ago quarter, a growth of 29.1%. The company linked the demand uptick to GST rate rationalisation announced in September last year. The quarter also saw a sharp rise in sales volumes across motorcycles and scooters.

Volumes rose 24% as demand improved

During the quarter, Hero sold 1.714 million units of motorcycles and scooters, up 24% year-on-year. The company attributed much of this volume growth to GST rate cuts. Higher volumes, along with the improved demand environment, supported the quarter’s financial performance. The update positions the GST change as an important near-term driver of customer purchases across categories.

FY26 performance: net profit up 32%

For the full FY26, Hero MotoCorp reported consolidated net profit of ₹5,776 crore, up 32% year-on-year. The company said its overall FY26 performance was supported by broad-based growth across its core ICE business. It specifically pointed to gains in the 100-125cc segment, scooters, and premium motorcycles. Product refreshes and strong festival demand were also cited as supportive factors through the year.

ICE growth and the premium push

Hero said growth was broad-based across its ICE portfolio, rather than being concentrated in a single segment. The company highlighted momentum in commuter motorcycles (100-125cc), scooters, and premium models. Management commentary also pointed to a premium and electric vehicle product portfolio contributing to growth. Harshavardhan Chitale, Chief Executive Officer of Hero MotoCorp, described FY26 as a “defining chapter” for the company and said momentum was visible across domestic and global markets.

Global business hits an all-time high

Hero said its global business grew 40% year-on-year in FY26, reaching an all-time high. It expanded its presence to 52 countries, including new markets in Europe and the UK. The statement suggests the company is scaling distribution beyond its traditional geographies, with a wider market footprint over the year. This expansion is a key part of Hero’s broader narrative of balancing domestic performance with international growth.

Harley-Davidson dispatches and Vida retail momentum

Hero’s Harley-Davidson business recorded 26% year-on-year growth in dispatch volumes, supported by launches and network expansion to more than 150 touchpoints. Separately, its electric mobility arm, Vida, reported strong momentum with retail volume sales rising 190% year-on-year. The company attributed Vida’s growth to new product introductions. These two updates together indicate traction in both premium internal combustion offerings and electric two-wheelers.

Dividend: ₹185 per share for FY26

Hero MotoCorp declared a total dividend of ₹185 per share for FY26. This includes a final dividend of ₹75 per share and an interim dividend of ₹110 per share. The announcement provides a clear shareholder return figure alongside the FY26 earnings update.

GST disputes: multiple tax demand orders disclosed

Alongside its operating performance commentary, the provided text also includes details of GST-related orders and disputes.

Hero MotoCorp disclosed a GST demand order of ₹4.97 crore from the Additional Commissioner, CGST, Vadodara, Gujarat, for FY2019-20, issued under Section 74 of the CGST Act and the Gujarat GST Act. The company assessed the demand as “not maintainable in law” and said it plans to file an appeal, adding that no material impact on financials or operations is expected.

A separate disclosure referenced an order from the Office of the Deputy Commissioner, State Tax, Lucknow (Uttar Pradesh), for FY2021-22, issued under Section 73 of the Central GST Act and the UP GST Act. The order raised a tax demand of ₹1.11 crore and a penalty of ₹0.11 crore, along with applicable interest. The company said it correctly availed input tax credit and again termed the demand “not maintainable in law,” stating it will take appropriate steps including an appeal.

The text also references two CGST orders from Alwar, Rajasthan, dated February 3, 2025, with penalties totalling ₹464.56 crore. The primary order included a penalty of ₹456.06 crore under Section 74 related to a dispute on tax rates for parts and accessories supplied during July 2017 to March 2024, along with an equivalent GST amount and interest. A second order imposed a penalty of ₹8.5 crore related to after-sales parts supplied during July 2017 to March 2021, also with an equivalent GST amount and interest. Hero MotoCorp said it would challenge these orders and stated that the demands would not materially impact its financial or operational activities.

Stock snapshot and block trade mention

The text includes market data showing Hero MotoCorp at ₹5,395.60, down 3.19%, with a 5-day change of -3.41% and a 1st Jan change of -6.49% (as shown in the provided table). Another price point cited is ₹5,322.00, down ₹21.00 (-0.39%). It also mentions a block trade on NSE worth ₹15.38 crore involving about 25,572 shares at ₹6,015.00 per share.

Summary table: key operational and financial data

GST orders table: amounts cited in disclosures

What to watch next

Hero’s CEO said the company is encouraged by supportive government policies, positive consumer sentiment, and the accelerating shift towards electrification and premiumisation, positioning it for 2026-27. Separately, the GST-related matters cited are at the stage of orders and intended appeals, with the company consistently stating it expects no material operational impact. Investors will track upcoming disclosures for progress on these appeals, and for how the company sustains volume growth after the GST-driven demand boost in FY26.