Auto Stock in Focus After Reporting 190% YoY Growth in EV Segment

Synopsis: Leading two wheeler company posted a strong FY26 with broad-based growth across segments, supported by core business strength, rising EV traction, and global expansion, indicating a steady shift toward future-ready mobility. 

The shares of this automotive company majorly engaged in manufacturing, selling & servicing  of two wheeler bikes were in focus after the company posted robust growth in EV segment during Q4 FY26. 

With the market capitalization of Rs. 1,01,830 Crores, the shares of Hero motoCorp ltd were trading at around Rs. 5089 per share which is 20 percent discount from its 52 week high of Rs. 6390 per share and is trading at a P/E of 17.5 whereas industry 31.4

Q4 FY26 Results

Year on Year analysis: Revenue from operations has increased from Rs. 9970 Crores to Rs. 12,978 Crores, up 30 percent. Operating profit has increased from Rs. 1441 Crores to Rs. 1870 Crores, up 63 percent and net profit has increased from Rs. 1169 Crores to Rs. 1474 Crores, up 26 percent

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 12,478 Crores to Rs. 12,978 Crores, up 4 percent. Operating profit has increased from Rs. 1752 Crores to Rs. 1870 Crores, up 6.7 percent and net profit has increased from Rs. 1275 Crores to Rs. 1474 Crores, up 15.6 percent

Strong Performance Sets the Base

Hero MotoCorp delivered a strong financial performance in FY26, reporting revenue of Rs. 46,830 crore, marking a 15 percent  growth over the previous year. Profit after tax stood at Rs. 5,268 crore, up 14 percent , reflecting steady earnings growth. EBITDA came in at Rs. 6,871 crore, rising 17 percent , with margins improving to 14.7 percent , up by 30 basis points.Volumes for the quarter rose 24 percent  to 17.14 lakh units, showing strong demand momentum.

Core Business Still Drives Stability

The company’s core internal combustion engine business remained the main growth driver. For the full year, Hero MotoCorp sold 64.69 lakh units, reflecting a 10 percent  increase. Growth was seen across key segments such as 100–125cc motorcycles, scooters, and premium bikes. Products like HF Deluxe Pro, Glamour X, and Xtreme 125R helped the company gain market share. Improved product mix and cost efficiencies supported margin expansion. The Parts, Accessories, and Merchandising (PAM) business also contributed significantly, generating Rs. 6,147 crore in revenue during the year.

EV Business Gaining Real Momentum

Hero MotoCorp’s EV arm, VIDA, saw strong growth and is becoming an important part of its future plans. VIDA recorded a nearly 190 percent  year-on-year growth, with retail volumes reaching around 1.51 lakh units in FY26. Market share improved from 6.1 percent  in March FY25 to 11.2 percent  in March FY26. New launches such as the VX2 series and DIRT.E K3 expanded its reach, especially in the mass segment. The introduction of Battery-as-a-Service also shows efforts to make EVs more affordable and accessible.

Premiumisation Improving Growth Quality

The company is gradually moving toward higher-value products. Premium motorcycles and partnerships like Harley-Davidson contributed to this shift. The Harley-Davidson segment recorded a 26 percent  growth in dispatch volumes, supported by new launches and expansion of the sales network from over 100 to more than 150 touchpoints. This move toward premium products is helping improve margins and overall brand strength.

Global Expansion Adds New Growth Layer

Hero MotoCorp’s global business delivered strong results, with volumes reaching 4.03 lakh units, a growth of 40 percent . The company expanded its presence to 52 countries, including entry into Europe and the UK. Strong performance in markets like Sri Lanka, Colombia, and Bangladesh supported this growth. The global parts and accessories business also saw a 49 percent  increase, adding another layer to international revenue.

Conclusion

Hero MotoCorp’s performance reflects a company balancing stability with change. While its core business continues to provide steady support, the growing focus on electric mobility, premium products, and global markets shows a clear shift in direction. The company is gradually building multiple growth drivers to stay relevant in a changing industry. This approach positions it well to adapt to evolving customer needs and future mobility trends. 

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