Hero MotoCorp Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Hero MotoCorp Ltd filed with BSE on 11 May 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 record Q4 and full-year FY26 revenue, EBITDA and PAT, with quarterly revenue up 29% year-on-year to Rs 12,797 crores and EBITDA up 31% to Rs 1,856 crores. Management highlighted growth in scooters, EVs, global business and the Harley-Davidson range, alongside a reduction in channel inventory. The company also flagged commodity cost inflation starting in March that it expects to partially offset through price increases and cost savings.
Numbers mentioned
Revenue: Rs 12,797 crores (Q4 FY26)
p. 5
“the company achieved its highest ever quarterly revenue of ₹12,797 crores, representing a 29% year-over-year growth”
Vivek Anand, page 5 of the filed PDF · View the filing
EBITDA: Rs 1,856 crores (Q4 FY26)
p. 5
“This top line momentum contributed to robust operational results with EBITDA reaching an all-time high of ₹1,856 crores, up 31% year-on-year”
Vivek Anand, page 5 of the filed PDF · View the filing
PAT: Rs 1,401 crores (Q4 FY26)
p. 5
“and PAT reaching ₹1,401 crores, up 30% year-on-year”
Vivek Anand, page 5 of the filed PDF · View the filing
ICE business EBITDA margin: 17% (Q4 FY26)
p. 5
“ICE business EBITDA margin in the quarter expanded by 100 basis points year-on-year to 17%, driven by pricing, LEAP savings and operating leverage”
Vivek Anand, page 5 of the filed PDF · View the filing
Overall EBITDA margin: 14.5% (Q4 FY26)
p. 5
“After taking into account the investments behind EV business of ₹220 crores, the overall EBITDA margin improved by 30 bps to 14.5%”
Vivek Anand, page 5 of the filed PDF · View the filing
Revenue: Rs 46,830 crores (FY26)
p. 5
“Revenue stood at ₹46,830 crores, growth of 15%”
Vivek Anand, page 5 of the filed PDF · View the filing
EBITDA: Rs 6,871 crores (FY26)
p. 5
“EBITDA ₹6,871 crores, growth of 17% and PAT ₹5,268 crores, growth of 14% year-on-year”
Vivek Anand, page 5 of the filed PDF · View the filing
PAT: Rs 5,268 crores (FY26)
p. 5
“EBITDA ₹6,871 crores, growth of 17% and PAT ₹5,268 crores, growth of 14% year-on-year”
Vivek Anand, page 5 of the filed PDF · View the filing
ICE business EBITDA margin: 17% (FY26)
p. 5
“The ICE business EBITDA margin in financial year '26 expanded by 90 basis points to 17%, driven by pricing, LEAP savings and operating leverage”
Vivek Anand, page 5 of the filed PDF · View the filing
Overall EBITDA margin: 14.7% (FY26)
p. 5
“After taking into account the investments behind EV business, the overall EBITDA margin improved by 30 bps to 14.7%”
Vivek Anand, page 5 of the filed PDF · View the filing
Cash flow from operations: Rs 9,395 crores (FY26)
p. 5
“Our focus on cash management resulted in strong cash flow from operations, which stood at ₹9,395 crores for the full year '26, an increase of 80% year-on-year, driven by working capital improvements.”
Vivek Anand, page 5 of the filed PDF · View the filing
Total dividend: Rs 185 per share (FY26)
p. 5
“I'm happy to inform that the Board has declared final dividend of ₹75 per share, taking the total dividend in financial year '26 to ₹185, our highest ever dividend.”
Vivek Anand, page 5 of the filed PDF · View the filing
Scooter volume growth: 48% (Q4 FY26 year-on-year)
p. 3
“In scooters, we saw 48% growth year-on-year.”
Harshavardhan Chitale, page 3 of the filed PDF · View the filing
EV scooter volume growth: 2.5x (Q4 FY26 year-on-year)
p. 3
“In EV, our EV scooter volumes expanded 2.5x over the previous year.”
Harshavardhan Chitale, page 3 of the filed PDF · View the filing
Global business dispatch growth: 41% (Q4 FY26 year-on-year)
p. 3
“And our global business, wholesale or dispatches saw growth of 41% year-on-year.”
Harshavardhan Chitale, page 3 of the filed PDF · View the filing
Harley-Davidson range growth: 26% (Q4 FY26 year-on-year)
p. 3
“our Harley-Davidson range of bikes that we sell or make and sell grew 26% year-on-year”
Harshavardhan Chitale, page 3 of the filed PDF · View the filing
Capex commitment: Rs 1,500 crores (FY27)
p. 4
“we have committed over ₹1,500 crores of capex in FY '27”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
Parts center investment: Rs 700 crores
p. 4
“So we've committed over ₹700 crores of investment in building out a global parts center in South of India.”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
Advertising and promotion spend growth: 22% (FY26)
p. 4
“Last year, just to call out, we increased our advertising and promotion spend by 22%.”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
Average selling price increase: 3% (Q4 FY26 quarter-on-quarter)
p. 5
“Additionally, the average selling price in the quarter increased by 3% quarter-on-quarter across the product segments.”
Vivek Anand, page 5 of the filed PDF · View the filing
EV investment (loss): Rs 220 crores (Q4 FY26)
p. 5
“After taking into account the investments behind EV business of ₹220 crores, the overall EBITDA margin improved by 30 bps to 14.5%.”
Vivek Anand, page 5 of the filed PDF · View the filing
Price hike taken: approximately 2% (April 2026)
p. 8
“So the price hike that we've taken is close to 2% - varies by different model, but approximately, say, 2% of the sale price.”
Harshavardhan Chitale, page 8 of the filed PDF · View the filing
Commodity cost increase per unit: Rs 2,100 per unit (Q4 FY26)
p. 18
“So during quarter 4, the material cost inflation was ₹2,100 and the corresponding revenue increase during the quarter was ₹2,000, right?”
Vivek Anand, page 18 of the filed PDF · View the filing
Spare parts sales: Rs 1,650 crores (Q4 FY26)
p. 14
“Yes. So for the quarter, it's ₹1,650 crores. And for the full year, it's around ₹6,200 crores, which is almost a growth of 6% year-on-year.”
Vivek Anand, page 14 of the filed PDF · View the filing
Spare parts sales: Rs 6,200 crores (FY26)
p. 14
“Yes. So for the quarter, it's ₹1,650 crores. And for the full year, it's around ₹6,200 crores, which is almost a growth of 6% year-on-year.”
Vivek Anand, page 14 of the filed PDF · View the filing
Export revenue: Rs 3,500 crores (FY26)
p. 13
“Yes, it's around ₹3,500 crores. And in terms of volume, it is 4,02,000 units.”
Vivek Anand, page 13 of the filed PDF · View the filing
Export volume: 4,02,000 units (FY26)
p. 13
“Yes, it's around ₹3,500 crores. And in terms of volume, it is 4,02,000 units.”
Vivek Anand, page 13 of the filed PDF · View the filing
Dealer inventory: 5 weeks
p. 13
“Yes. So in terms of the dealer inventory, it's around 5 weeks, I'll say.”
Vivek Anand, page 13 of the filed PDF · View the filing
Euler stake: close to 37%
p. 17
“That takes our -- so we just invested ₹200-plus crores, and that takes our shareholding to close to 37%.”
Vivek Anand, page 17 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.
2-wheeler industry volume growth — high single-digit growth · FY27
stated firmly by Vivek Anand
p. 6
“We are confident in the growth prospects of the 2-wheeler industry and anticipate high single-digit growth during the current fiscal year.”
Vivek Anand, page 6 of the filed PDF · View the filing
Hero MotoCorp growth versus industry — grow ahead of the industry · FY27
stated as an aspiration by Vivek Anand
p. 6
“With resilient demand and upcoming product launches, we expect to grow ahead of the industry.”
Vivek Anand, page 6 of the filed PDF · View the filing
Overall EBITDA margin — 14% to 16% · medium-term
stated conditionally by Vivek Anand
p. 6
“We remain committed to our medium-term margin guidance of 14% to 16%.”
Vivek Anand, page 6 of the filed PDF · View the filing
Capex — Rs 1,500 crores · FY27
stated firmly by Harshavardhan Chitale
p. 4
“we have committed over ₹1,500 crores of capex in FY '27”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
EV capacity expansion — double capacity · within a month
stated firmly by Harshavardhan Chitale
p. 4
“In EV, in fact, in a matter of a month, we would double our capacity from where we started last year.”
Harshavardhan Chitale, page 4 of the filed PDF · View the filing
EV capacity expansion (second phase) — further doubling · before end of financial year
stated firmly by Harshavardhan Chitale
p. 18
“So we said the first one will be in a matter of month and the second phase will be before end of this financial year.”
Harshavardhan Chitale, page 18 of the filed PDF · View the filing
Xoom scooter capacity — doubling capacity · this quarter
stated firmly by Harshavardhan Chitale
p. 14
“Xoom, we are in process of doubling the capacity, which will also happen this quarter.”
Harshavardhan Chitale, page 14 of the filed PDF · View the filing
PLI coverage of portfolio — 90% coverage · during the year
stated conditionally by Vivek Anand
p. 7
“And we have plans during the year to go to almost 90% of our coverage.”
Vivek Anand, page 7 of the filed PDF · View the filing
Global business/exports momentum — FY27
stated as an aspiration by Harshavardhan Chitale
p. 11
“We do hope to continue our momentum of last 2 years in FY '27 as well.”
Harshavardhan Chitale, page 11 of the filed PDF · View the filing
Parts handling capacity — double the capacity
stated firmly by Harshavardhan Chitale
p. 16
“So the new center that we are setting up is to get us a double the capacity.”
Harshavardhan Chitale, page 16 of the filed PDF · View the filing
e-scooter capacity run-rate — ~100,000 (doubling from ~60,000)
stated as an aspiration by Harshavardhan Chitale
p. 9
“That's our ambition.”
Harshavardhan Chitale, page 9 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 industry expects high single-digit growth with scooters growing faster than motorcycles, and Hero aims to outgrow the industry in both.
Answered by Harshavardhan Chitale
Asked by Binay Singh: What is the volume outlook for the motorcycle industry and Hero for FY27?
p. 6
“So high single digit with a little less motorcycle, more in scooters.”
Harshavardhan Chitale, page 6 of the filed PDF · View the filing
Management said it is difficult to give a precise number given fast-changing conditions, but confirmed a calibrated price increase and accelerated cost savings, while remaining committed to margin guidance.
Answered by Vivek Anand
Asked by Binay Singh: What is the quantum of commodity/wage headwind and price hikes taken?
p. 7
“we are certainly -- as I said, we've taken a calibrated price increase in April, right.”
Vivek Anand, page 7 of the filed PDF · View the filing
Management said EV is still in a build-out phase with continued investment, but EBITDA losses per unit are declining quarter-on-quarter, aided by PLI, scale and BOM cost reduction.
Answered by Vivek Anand
Asked by Binay Singh: Have EV losses peaked and how will they narrow?
p. 7
“the EBITDA losses per unit is actually coming down, right, in each quarter.”
Vivek Anand, page 7 of the filed PDF · View the filing
Management said the 2% price hike does not fully cover the high single-digit BOM cost increase, with the balance offset partly by cost reduction, discretionary spend cuts and volume leverage.
Answered by Harshavardhan Chitale
Asked by Gunjan Prithyani: How much of the commodity cost increase do current price hikes cover?
p. 8
“So the price hike as of now does not cover fully the BOM cost increase.”
Harshavardhan Chitale, page 8 of the filed PDF · View the filing
Management detailed Destini capacity up 50%, Xoom capacity doubling, and EV capacity up 50% within a month with further doubling planned.
Answered by Harshavardhan Chitale
Asked by Gunjan Prithyani: What is the status of e-scooter and ICE scooter capacity expansion?
p. 9
“we increased our Destini capacity by 50% already. We are in process of doubling our Xoom capacity.”
Harshavardhan Chitale, page 9 of the filed PDF · View the filing
Management cited growth opportunities in Latin America, Africa, Bangladesh and Sri Lanka, while noting fuel price hikes and transportation cost increases as near-term risks being passed through in pricing.
Answered by Harshavardhan Chitale
Asked by Amyn Pirani: What is the outlook for export markets and any near-term risks?
p. 11
“We do see fuel price hike in Bangladesh, in Sri Lanka. There, we do see some impact on demand in the short term.”
Harshavardhan Chitale, page 11 of the filed PDF · View the filing
Management said the commodity cost increase was Rs 2,000 per unit in Q4, matched by a similar revenue increase per unit.
Answered by Vivek Anand
Asked by Kapil Singh: What was the commodity cost pressure in Q4?
p. 12
“our commodity cost increase in Q4 was a total of ₹2,000 per unit.”
Vivek Anand, page 12 of the filed PDF · View the filing
Management said scooters and motorcycles serve distinct use cases and there is no shift away from motorcycles, though urbanization favors scooter growth.
Answered by Harshavardhan Chitale
Asked by Kapil Singh: Is there a structural shift from motorcycles to scooters?
p. 12
“So we are not seeing shift away from motorcycles, if that was your question, because these are 2 different consumer use cases.”
Harshavardhan Chitale, page 12 of the filed PDF · View the filing
Management said there has been no further development on ABS regulation, and EPR is still evolving with pricing unclear, making impact hard to quantify.
Answered by Vivek Anand
Asked by Raghunandhan: What is the status and potential impact of the ABS regulation and EPR draft notification?
p. 13
“So EPR, at this point in time, as you rightly said, it's still -- it's in evolving stage, right.”
Vivek Anand, page 13 of the filed PDF · View the filing
Management explained the cost increase was covered in value but not in percentage margin terms, and additional EV BOM cost impact contributed to the margin decline.
Answered by Harshavardhan Chitale
Asked by Shridhar Kallani: Why did gross margin fall over 100 bps in Q4 despite price hikes covering commodity cost?
p. 18
“If you see the value is covered, the cost increase is covered by price, but not the percent margin that you get on that cost.”
Harshavardhan Chitale, page 18 of the filed PDF · View the filing
Risks flagged
Commodity cost inflation (metals, gas) linked to West Asia developments
p. 5
“As FY '27 begins, the broader economy is navigating certain short-term uncertainties due to the developments in West Asia.”
Harshavardhan Chitale, page 5 of the filed PDF · View the filing
Rising labor costs
p. 5
“That has impacted the entire industry in terms of commodity costs, be it cost of metals, cost of gas or in the recent past, also we've seen an increase in certain labor costs.”
Harshavardhan Chitale, page 5 of the filed PDF · View the filing
Transitionary margin impact from commodity headwinds
p. 6
“the industry is currently facing commodity headwinds that began in March. We expect a transitionary impact on margins in the short term and are mitigating this through calibrated price increases and an accelerated LEAP saving program.”
Vivek Anand, page 6 of the filed PDF · View the filing
Rapid and unpredictable commodity price volatility making forecasting difficult
p. 7
“Every week, if you see the volatility and hence, picking to any number would be taking a shot in the dark.”
Harshavardhan Chitale, page 7 of the filed PDF · View the filing
Fuel price hikes affecting demand in Bangladesh and Sri Lanka
p. 11
“We do see fuel price hike in Bangladesh, in Sri Lanka. There, we do see some impact on demand in the short term.”
Harshavardhan Chitale, page 11 of the filed PDF · View the filing
Rising transportation and container costs globally
p. 11
“And we do see increase in transportation cost, container costs all over the world, but that's a matter of then pricing it and passing it on in the end retail price.”
Harshavardhan Chitale, page 11 of the filed PDF · View the filing
Uncertainty around EPR notification pricing and potential retrospective impact
p. 13
“This is currently under discussion, I'll say. So we are really looking at evaluating all options, right.”
Vivek Anand, page 13 of the filed PDF · View the filing
Ongoing evolving macro situation requiring continued monitoring
p. 15
“But this is an evolving situation, and we need to keep monitoring because of this impact and the uncertainty that it creates.”
Harshavardhan Chitale, page 15 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.