Hero Motors’ e-mobility revenue reaches 23% of Fiscal 2026 sales

Hero Motors’ e-mobility revenue more than doubled to Rs 273.29 crore in Fiscal 2026 from Rs 128.085 crore in Fiscal 2024, lifting its share of revenue from operations to 23.00% from 12.03%. The shift was driven by electric vehicle, or EV, sales growth, while non-EV products still represented Rs 915.061 crore, or 77.00%, of Fiscal 2026 revenue.

How did Hero Motors’ e-mobility revenue mix change?

Hero Motors’ e-mobility revenue increased by Rs 145.205 crore over the two years to Fiscal 2026, compared with a Rs 123.965 crore increase in total revenue from operations. Total revenue rose to Rs 1,188.351 crore in Fiscal 2026 from Rs 1,064.386 crore in Fiscal 2024, so EV sales grew faster than the overall business and changed the revenue mix.

The increase occurred in both reported years. EV revenue reached Rs 175.592 crore, or 16.12% of revenue from operations, in Fiscal 2025 before rising to Rs 273.29 crore in Fiscal 2026. The EV share therefore increased by 4.09 percentage points in Fiscal 2025 and by a further 6.88 percentage points in Fiscal 2026.

The mix change also reflects a comparatively stable non-EV base. Non-EV revenue fell from Rs 936.301 crore in Fiscal 2024 to Rs 914.001 crore in Fiscal 2025, then increased marginally to Rs 915.061 crore in Fiscal 2026. EV revenue grew in both years, meaning the 23.00% e-mobility share depended on electric-product growth rather than a broad contraction in non-EV sales.

Which businesses generated Hero Motors’ e-mobility revenue?

Hero Motors’ Bike Powertrain business generated the largest EV revenue contribution in Fiscal 2026, at Rs 148.87 crore or 12.53% of company revenue. Gears and Transmissions generated Rs 119.81 crore, or 10.08%, while Alloys and Metallics, or A&M, contributed Rs 4.61 crore, or 0.39%.

Bike Powertrain serves the EV market exclusively, while Gears and Transmissions and A&M are powertrain-neutral businesses that can supply EVs, internal combustion engine, or ICE, vehicles and hybrid vehicles. This product structure means that Fiscal 2026 EV revenue came principally from a dedicated electric bike business and from electric applications within the transmission business.

Gears and Transmissions recorded the larger absolute increase across the two-year period, with EV revenue rising from Rs 25.902 crore in Fiscal 2024 to Rs 119.81 crore in Fiscal 2026. Bike Powertrain EV revenue increased from Rs 100.762 crore to Rs 148.87 crore over the same period. Hero Motors supplies EV transmissions, gear components, gearbox assemblies and related design, prototyping and validation services through these operations.

Why does non-EV business still define Hero Motors’ sales base?

Hero Motors’ non-EV business remained its largest revenue category in Fiscal 2026, generating Rs 915.061 crore and accounting for 77.00% of revenue from operations. Although this share declined from 87.97% in Fiscal 2024, the Fiscal 2026 amount was slightly above the Rs 914.001 crore reported in Fiscal 2025.

A&M was the largest non-EV contributor, reporting Rs 545.988 crore in Fiscal 2026, or 45.94% of company revenue. The segment made sheet-metal and tubular assemblies and components for automotive, bicycle and e-bike applications, and Hero Motors describes its product range as powertrain-neutral.

Gears and Transmissions supplied Rs 369.073 crore of non-EV revenue in Fiscal 2026, or 31.06% of sales, down from Rs 392.148 crore in Fiscal 2024. Bike Powertrain had no reported non-EV revenue in Fiscal 2025 or Fiscal 2026, after Rs 1.419 crore in Fiscal 2024. The reported mix shows that the e-mobility expansion has not yet displaced the larger A&M and conventional transmission revenue base.

What products and capacity support Hero Motors’ e-mobility revenue growth?

Hero Motors has built its micro-mobility offering around continuously variable transmission, or CVT, systems, electric motors and electric drive units, or EDUs. An EDU is an integrated system in which the motor, battery and controller are key components. The company entered the EDU segment under the ESYNC brand in 2023 and said it began supplying e-bike original equipment manufacturers, or OEMs, after establishing a technology centre in Gautam Buddha Nagar in 2024.

Hero Motors formed a joint venture with Yamaha Motors Japan in 2021 to manufacture electric motors under the HYM brand, and operations commenced in 2022. The HYM facility began production in the first quarter of 2023 with annual capacity of 145,000 motors. Hero Motors has disclosed an expectation that the facility will scale to 1 million units by Fiscal 2030, which remains a capacity plan rather than reported production.

Hero Motors said its CVT systems powered more than 0.40 million e-bikes globally across Fiscal 2024, Fiscal 2025 and Fiscal 2026. The company also states, citing the CRISIL Report, that it is the only manufacturer exporting CVT hubs to global e-bike OEMs from India. Its range includes EV gearboxes, e-axles, gear-set assemblies, motors and EDUs for e-bikes, two-wheelers, three-wheelers and passenger vehicles.

What must happen for Hero Motors’ e-mobility mix to keep rising?

Hero Motors’ EV share can keep increasing only if EV revenue grows faster than both total revenue and the Rs 915.061 crore non-EV base reported in Fiscal 2026. Powertrain Solutions represented Rs 637.753 crore, or 53.67%, of Fiscal 2026 revenue, while A&M represented Rs 550.598 crore, or 46.33%. The powertrain business includes EV-only Bike Powertrain and EV applications in Gears and Transmissions.

The CRISIL Report provides an external demand backdrop, not a Hero Motors forecast. It projects global e-bike volumes to increase from 8.24 million units in 2024 to 12.5 million to 14.5 million units by 2031, while motorcycle EV penetration is projected to rise from 2.0% in 2025 to 10.5% to 12.5% in 2031. The prospectus attributes these projections to factors including battery technology, charging infrastructure and government support.

Customer concentration and geographic demand also affect whether EV revenue can continue to expand. Hero Motors’ top 10 customers contributed Rs 866.14 crore, or 72.89%, of Fiscal 2026 revenue, and the largest customer accounted for Rs 422.744 crore, or 35.57%. Revenue from outside India was Rs 491.527 crore, or 41.36%, so future programme orders across international markets remain material to the sales mix.

Conclusion

Hero Motors’ Fiscal 2026 results show a substantial movement toward e-mobility, with EV revenue reaching Rs 273.29 crore and 23.00% of sales after representing Rs 128.085 crore and 12.03% in Fiscal 2024. Bike Powertrain and EV applications within Gears and Transmissions drove the increase, but non-EV products continued to supply Rs 915.061 crore of revenue.

The next disclosed development to watch is the planned expansion of HYM motor capacity from 145,000 annual units at production start in the first quarter of 2023 to 1 million units by Fiscal 2030. The persistence of a higher EV mix will depend on execution of that plan, continued e-bike and electric two-wheeler demand, and EV revenue growth exceeding the company’s non-EV sales base.