New Delhi: Hero MotoCorp delivered its strongest quarterly performance ever in Q2 FY26, powered by a broad-based demand rebound following the GST rate cut and robust festive momentum. The world’s largest two-wheeler maker reported revenue of ₹12,126 cr, up 16% YoY, while EBITDA rose 20% YoY to ₹1,823 cr. PAT came in at ₹1,393 cr, also up 16% YoY.
The company maintained healthy profitability, with ICE margin at 17.7% and consolidated margin at 15%, despite an EV drag of ₹252 cr. For H1 FY26, Hero posted revenue of ₹21,705 cr and PAT of ₹2,519 cr.
A sharp ~10% GST cut triggered a significant demand revival, particularly in the entry and deluxe segments. Festive registrations on VAHAN were up 16-17%, with Hero gaining share. Executives highlighted that 81% of recent buyers were first-time purchasers, signaling strong penetration in mass markets. Rural demand also showed visible improvement, while inventory and receivables dropped to multi-year lows, strengthening Hero’s channel health.
The Entry/Deluxe segment led growth, with HF Deluxe Pro and Splendor recording strong offtake. In the 125cc category, Glamour X continued to gain traction. The premium portfolio posted a solid 31% growth in XPulse, supported by Hero’s expanding network of 100 exclusive stores.
In scooters, Hero’s 125cc share stands at ~10%, while Destini 110 and Xoom 160 are ramping up well.
Hero’s EV brand Vida achieved its highest-ever mkt share of 11.7%, driven by stronger presence in major cities. However, the EV vertical remains loss-making; the company plans price hikes and BOM cost reductions to significantly narrow losses by early FY27.
Exports remained a bright spot with dispatches up 77% YoY, contributing 8.6% to overall volumes. Premium motorcycles now contribute 40%+ of the export mix. Hero is also expanding into Europe and the UK, indicating a renewed global push.
With improving rural sentiment, festive momentum, and sustained market share gains, Hero expects industry growth of 8–10% in H2, and aims to outperform the sector. Margin guidance continues to remain steady at 14-16% for the year.
