Hero Motors Limited first-half profit rises 84% to Rs 27.5895 crore

Hero Motors Limited reported consolidated revenue from operations of Rs 684.118 crore for the half year ended September 30, 2026, up 23% from Rs 556.4512 crore a year earlier, while net profit rose 84% to Rs 27.5895 crore. The unaudited results include the period in which Hero Motors completed its initial public offer and listing.

How did Hero Motors’ first-half earnings change?

Hero Motors increased profit before tax to Rs 39.0295 crore in the half year ended September 30, 2026, from Rs 23.7556 crore in the corresponding 2025 period. Revenue from operations increased by Rs 127.6668 crore year on year, while total expenses rose to Rs 653.5463 crore from Rs 547.0849 crore. Reported profit for the period consequently increased to Rs 27.5895 crore from Rs 14.9774 crore.

The September 2026 quarter contributed Rs 364.7949 crore of revenue and Rs 18.0185 crore of profit, compared with Rs 300.7085 crore and Rs 11.1014 crore, respectively, in the September 2025 quarter. Profit before tax in the latest quarter was Rs 23.4424 crore, versus Rs 17.2927 crore a year earlier. Basic earnings per share for the half year were Rs 0.74, compared with Rs 0.42 in the previous corresponding period, and were not annualised.

Tax expense was Rs 15.7042 crore in the 2026 half year, compared with Rs 7.5189 crore in the prior-year half year. Depreciation and amortisation rose to Rs 25.3749 crore from Rs 22.208 crore, while finance cost increased to Rs 22.1757 crore from Rs 19.5157 crore. The September 2025 quarter and half-year comparative figures were prepared by management and had not been reviewed by the statutory auditors, according to the notes.

Which segments drove Hero Motors’ revenue growth?

Hero Motors’ Powertrain Solutions segment generated Rs 368.3762 crore of first-half revenue, up from Rs 298.4979 crore in the prior-year period, while Alloys and Metallics generated Rs 351.887 crore, up from Rs 278.3242 crore. Before eliminating inter-segment sales, the two segments produced Rs 720.2632 crore of revenue, compared with Rs 576.8221 crore a year earlier. Inter-segment revenue eliminations increased to Rs 36.1452 crore from Rs 20.3709 crore.

Powertrain Solutions recorded a first-half segment result of Rs 53.7587 crore, compared with Rs 30.481 crore in the previous corresponding period. Alloys and Metallics recorded a segment result of Rs 20.1768 crore, against Rs 11.6558 crore a year earlier. The disclosed segment results are before unallocable income or expenses and finance cost, which was Rs 22.1757 crore for the 2026 half year.

In the September 2026 quarter, Powertrain Solutions revenue was Rs 197.8449 crore and Alloys and Metallics revenue was Rs 185.0707 crore. That compares with Rs 162.9552 crore and Rs 150.4301 crore, respectively, in the September 2025 quarter. Segment assets at September 30, 2026 were Rs 998.1017 crore for Powertrain Solutions and Rs 370.2021 crore for Alloys and Metallics, while unallocated assets were Rs 476.7916 crore.

How did the IPO reshape Hero Motors’ balance sheet and cash flows?

Hero Motors’ total assets rose to Rs 1,845.0954 crore at September 30, 2026 from Rs 1,371.7867 crore at March 31, 2026, while total equity increased to Rs 1,086.381 crore from Rs 481.0134 crore. Equity share capital rose to Rs 454.2156 crore from Rs 358.336 crore and other equity increased to Rs 626.4775 crore from Rs 116.3242 crore. The cash-flow statement reported Rs 567.354 crore of initial public offer proceeds net of offer-related expenses excluding taxes.

Borrowings declined during the half year, with non-current borrowings falling to Rs 30.3389 crore at September 30 from Rs 98.7689 crore at March 31, and current borrowings falling to Rs 193.2157 crore from Rs 302.0203 crore. Cash and cash equivalents increased to Rs 43.5028 crore from Rs 22.3919 crore, while bank balances other than cash equivalents rose to Rs 223.45 crore from Rs 20 crore. Other financial assets increased to Rs 85.3599 crore from Rs 33.132 crore.

Operating cash inflow was Rs 19.1894 crore for the half year, below Rs 83.7759 crore in the prior-year period. Working-capital movements included a Rs 38.419 crore increase in trade receivables, a Rs 26.9663 crore increase in inventories and a Rs 52.5316 crore increase in other financial assets. Investing cash outflow was Rs 373.2415 crore, including Rs 324.453 crore invested in fixed deposits not treated as cash equivalents and Rs 50.3418 crore spent on property, plant and equipment, capital work in progress, capital advances and intangible assets.

How will Hero Motors use its IPO proceeds?

Hero Motors had utilised Rs 216.84 crore of net initial public offer proceeds by September 30, 2026 and had Rs 345.15 crore unutilised, from net proceeds of Rs 561.99 crore. It used Rs 189.84 crore to repay, prepay or redeem borrowings, against an allocation of Rs 190 crore. It also used Rs 27 crore for unidentified acquisitions, strategic initiatives and general corporate purposes.

The remaining disclosed allocation included Rs 200 crore for equipment to expand capacity at the Gautam Buddha Nagar, Uttar Pradesh facility, none of which had been utilised by September 30, 2026. Of the Rs 171.99 crore allocated to inorganic growth, strategic initiatives and general corporate purposes, Rs 144.99 crore remained unused. Hero Motors said unutilised proceeds were temporarily invested in deposits and partly held in scheduled commercial bank accounts.

The board declared an interim dividend of Rs 0.32 per equity share on May 1, 2026, aggregating to Rs 12.1379 crore, which was paid within prescribed timelines. During the half year, employees exercised 34,79,045 employee stock options, while 9,51,528 options were granted in the September 2026 quarter. The company also disclosed that 2,09,71,941 compulsory convertible preference shares were converted into the same number of equity shares after the quarter end.

Conclusion

Hero Motors combined 23% first-half revenue growth with an 84% increase in net profit for the half year ended September 30, 2026. Both operating segments expanded revenue and segment results, while initial public offer proceeds increased equity, reduced reported borrowings and raised cash and deposit balances. Operating cash flow, however, declined to Rs 19.1894 crore as receivables, inventories and other financial assets consumed cash.

The next disclosed milestones are the use of Rs 345.15 crore of unutilised initial public offer proceeds, particularly the Rs 200 crore capacity-expansion allocation for Gautam Buddha Nagar and the Rs 144.99 crore remaining for inorganic growth and corporate purposes. Hero Motors also said it continues to monitor Labour Code developments after recording a Rs 1.9588 crore exceptional employee-benefit impact in the year ended March 31, 2026.