Hero MotoCorp Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Hero MotoCorp Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Hero MotoCorp reported Q1 FY27 revenue from operations of Rs 12,999 crore, EBITDA of Rs 1,727 crore and PAT of Rs 1,454 crore, with total volume growth of 23% year-on-year driven by 21% growth in ICE and 151% growth in EV. Management attributed gross margin contraction of 300 basis points quarter-on-quarter to commodity cost inflation linked to the West Asia conflict, while EBITDA margin declined by a smaller 120 basis points sequentially to 13.3% due to cost mitigation actions. The company also detailed capacity expansions in EV, Splendor, Destini and Xoom, new product launches including VIDA VX2 variants and flex-fuel motorcycles, and leadership changes including a new Chief Business Officer for the Premium segment.
Numbers mentioned
Revenue from operations: INR12,999 crores (Q1 FY27)
p. 6
“recording revenue from operations of INR12,999 crores, an EBITDA of INR1,727 crores and a profit after tax of INR1,454 crores”
Vivek Anand, page 6 of the filed PDF · View the filing
EBITDA: INR1,727 crores (Q1 FY27)
p. 6
“recording revenue from operations of INR12,999 crores, an EBITDA of INR1,727 crores and a profit after tax of INR1,454 crores”
Vivek Anand, page 6 of the filed PDF · View the filing
Profit after tax: INR1,454 crores (Q1 FY27)
p. 6
“recording revenue from operations of INR12,999 crores, an EBITDA of INR1,727 crores and a profit after tax of INR1,454 crores”
Vivek Anand, page 6 of the filed PDF · View the filing
Total volume growth: 23% (Q1 FY27, year-on-year)
p. 7
“Total volume grew by a robust 23% year-on-year.”
Vivek Anand, page 7 of the filed PDF · View the filing
ICE growth: 21% (Q1 FY27, year-on-year)
p. 7
“This was backed by steady 21% growth in our core ICE portfolio and a strong 151% growth in our EV business”
Vivek Anand, page 7 of the filed PDF · View the filing
EV growth: 151% (Q1 FY27, year-on-year)
p. 7
“This was backed by steady 21% growth in our core ICE portfolio and a strong 151% growth in our EV business”
Vivek Anand, page 7 of the filed PDF · View the filing
Revenue growth: 36% (Q1 FY27, year-on-year)
p. 7
“our revenue growth outpaced volume growth significantly, coming in at 36% year-on-year”
Vivek Anand, page 7 of the filed PDF · View the filing
Gross margin contraction: 300 basis points (Q1 FY27, quarter-on-quarter)
p. 7
“our gross margin for the quarter came down under pressure, contracting 300 basis points quarter-on-quarter, primarily due to an approximate 4.5% net commodity inflation impact”
Vivek Anand, page 7 of the filed PDF · View the filing
EBITDA margin: 13.3% (Q1 FY27)
p. 7
“our overall EBITDA margin decline was lower at 120 basis points sequentially, landing at 13.3%”
Vivek Anand, page 7 of the filed PDF · View the filing
ICE EBITDA margin: 15.9% (Q1 FY27)
p. 7
“Looking specifically at our ICE portfolio, EBITDA margins held up even better, contracting by 90 basis points sequentially to 15.9%”
Vivek Anand, page 7 of the filed PDF · View the filing
VIDA quarterly volume: 57,000 units (Q1 FY27)
p. 7
“VIDA achieved strong growth with quarterly volume reaching 57,000 units, up 26% quarter-on-quarter”
Vivek Anand, page 7 of the filed PDF · View the filing
VIDA P&L investment: around INR230 crores (Q1 FY27)
p. 7
“our total P&L investment in the VIDA business remained flat sequentially at around INR230 crores”
Vivek Anand, page 7 of the filed PDF · View the filing
PLI benefit: INR48 crores (Q1 FY27)
p. 8
“targeting pricing actions and PLI benefit amounting to INR48 crores during the quarter”
Vivek Anand, page 8 of the filed PDF · View the filing
EV PLI certification: 60% (Q1 FY27)
p. 8
“around 60% of our EV portfolio is now PLI certified”
Vivek Anand, page 8 of the filed PDF · View the filing
Consolidated PAT: INR1,418 crores (Q1 FY27)
p. 8
“Company PAT of INR1,418 crores versus normalized profit of around INR1,100 crores last year”
Vivek Anand, page 8 of the filed PDF · View the filing
Wholesale market share increase: 30 basis points (Q1 FY27)
p. 4
“Overall, we saw our wholesale market share increase by 30 basis points in quarter 1.”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
ICE scooter market share gain: 2.3% (Q1 FY27)
p. 4
“Within ICE - scooters, we gained market share by 2.3%.”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
EV market share gain: more than 400 basis points (trailing 1 year)
p. 4
“this has helped us gain more than 400 basis points of market share here on -- within 1 year”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
2-wheeler industry growth: 14% (Q1 FY27, year-on-year)
p. 3
“2-wheeler industry volumes grew 14% year-on-year in terms of VAHAN or retail sales, of which 11% was growth in ICE and 67% was in EV”
Harshavardhan Chitale, page 3 of the filed PDF · View the filing
Retail finance penetration: close to 65-odd percent (last month)
p. 10
“We have seen our retail finance penetration last month jumping to close to 65-odd percent, and that's strong.”
Ashutosh Varma, page 10 of the filed PDF · View the filing
EV revenue: around INR660 crores (Q1 FY27)
p. 14
“EV revenue last quarter is around INR660 crores, right.”
Vivek Anand, page 14 of the filed PDF · View the filing
EV EBITDA loss per unit: INR40,000 (Q1 FY27)
p. 15
“this quarter, the EBITDA loss has come down from almost INR50,000 from previous quarter to INR40,000”
Vivek Anand, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 14% to 16% · medium term
stated as an aspiration by Vivek Anand
p. 8
“Our primary focus will remain on driving EBITDA growth while progressing towards our medium-term EBITDA margin target range of 14% to 16%.”
Vivek Anand, page 8 of the filed PDF · View the filing
Input cost inflation — Q2 FY27
stated firmly by Vivek Anand
p. 11
“we expect a marginal uptick in input cost inflation, right.”
Vivek Anand, page 11 of the filed PDF · View the filing
EV production capacity — close to 45,000 per month · before the end of this financial year
stated firmly by Harshavardhan Chitale
p. 5
“you should see us go to close to 45,000 per month before the end of this financial year”
Harshavardhan Chitale, page 5 of the filed PDF · View the filing
PLI portfolio compliance — 100% · December 2026
stated firmly by Vivek Anand
p. 8
“we expect 100% of our portfolio to be PLI compliant by December 2026”
Vivek Anand, page 8 of the filed PDF · View the filing
Second phase of VIDA capacity expansion — last quarter of this financial year
stated firmly by Harshavardhan Chitale
p. 9
“the second phase of expansion of VIDA, which will come in the last quarter of this financial year”
Harshavardhan Chitale, page 9 of the filed PDF · View the filing
Export growth — 40% plus year-on-year
stated as an aspiration by Harshavardhan Chitale
p. 13
“We are aiming for that kind of growth going forward.”
Harshavardhan Chitale, page 13 of the filed PDF · View the filing
Electric motorcycle platforms — next year
stated firmly by Kausalya Nandakumar
p. 16
“We will be looking at products coming in from the next year.”
Kausalya Nandakumar, page 16 of the filed PDF · View the filing
2-wheeler industry growth — approaching double digit · full year FY27
stated as an aspiration by Harshavardhan Chitale
p. 17
“right now, plans are towards full year of approaching double digit as an industry growth”
Harshavardhan Chitale, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said channel inventory for VIDA is nearly nil, and ICE scooters also show depleted channel stock, indicating strong underlying demand.
Answered by Harshavardhan Chitale
Asked by Amyn Pirani: What is the demand outlook and channel inventory situation for the new scooter and EV launches given the capacity expansion?
p. 8
“We have pretty much nil channel inventory. It's 2 to 3 days depending on region to region.”
Harshavardhan Chitale, page 8 of the filed PDF · View the filing
Management confirmed capacity would more than double, with two-thirds already complete and the remainder due in the last quarter of the fiscal year, backed by low channel stock.
Answered by Harshavardhan Chitale
Asked by Gunjan Prithyani: What is the timeline for the capacity expansion in EV and scooters, and is there demand visibility to support it?
p. 9
“2/3 of this is already done. And the balance 1/3, the second phase of expansion of VIDA, which will come in the last quarter of this financial year.”
Harshavardhan Chitale, page 9 of the filed PDF · View the filing
Management said the medium-term target remains 14%-16%, with confidence in returning to it over the medium term but not in the short term, prioritizing absolute EBITDA growth.
Answered by Harshavardhan Chitale
Asked by Binay Singh: Can the company maintain the 14%-16% EBITDA margin range for the year given cost pressures?
p. 11
“So in the midterm, we are confident of going back to it, but not in the short term.”
Harshavardhan Chitale, page 11 of the filed PDF · View the filing
Management stated EV revenue was around Rs 660 crore, roughly 5% of total revenue, and expected the EV contribution to rise as capacity scales.
Answered by Vivek Anand
Asked by Chandramouli Muthiah: What percentage of company revenue currently comes from EV, and how is that expected to trend?
p. 14
“EV revenue last quarter is around INR660 crores, right.”
Vivek Anand, page 14 of the filed PDF · View the filing
Management said the motorcycle platforms Ubex and VXZ are new designs tailored to motorcycle-specific needs, with launches expected from next year.
Answered by Kausalya Nandakumar
Asked by Kapil Singh: What is the timeline for electric motorcycle platforms, and how do they differ from the scooter platform?
p. 16
“It's not this year. We will be looking at products coming in from the next year.”
Kausalya Nandakumar, page 16 of the filed PDF · View the filing
Management said price increases have been calibrated, with some categories seeing price cuts to boost volumes, and reiterated a focus on driving volume growth.
Answered by Harshavardhan Chitale
Asked by Sonal Gupta: Given declining market share, will the company continue taking price increases or focus more on growth?
p. 19
“our focus, to answer your question, continues to remain on driving volume growth and hence, calibrating price increases appropriately”
Harshavardhan Chitale, page 19 of the filed PDF · View the filing
Management said growth was around 25% and beyond, driven by expanded reach, new SKUs, and new lines of business, with more headroom to capture from the gray market.
Answered by Ashutosh Varma
Asked by Raghunandhan N. L.: Can PAM (parts and accessories) revenue growth of 20% or more be sustained in FY27?
p. 17
“strong growth close to 25% and beyond. We see the trend similarly in July as well.”
Ashutosh Varma, page 17 of the filed PDF · View the filing
Risks flagged
Transitory commodity cost inflation from geopolitical conflict affecting margins
p. 7
“The conflict in West Asia triggered inflationary spikes across oil and gas, freight, foreign exchange and core raw materials, including steel, aluminum and precious metals.”
Vivek Anand, page 7 of the filed PDF · View the filing
Marginal uptick in input cost inflation expected in the near term
p. 8
“while we expect a marginal uptick in input cost inflation, we plan to neutralize by continued improvement of product mix, optimizing our discretionary spends and accelerating cost-saving programs”
Vivek Anand, page 8 of the filed PDF · View the filing
Base effect from prior-year GST-driven sales surge could lower year-on-year industry growth in H2
p. 17
“H2, you're right, does have a base effect of big jump that happened in sales in H2 last year post GST.”
Harshavardhan Chitale, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.