Hero MotoCorp beats Q4 profit expectations on strong domestic demand

Hero MotoCorp, India's top two-wheeler manufacturer, beat the quarterly profit estimates in the last quarter, driven by strong domestic demand, which accounts for more than 90% of the company's sales, the automaker has revealed. The tax cut on sub-350 cc two-wheelers has helped the brand significantly, as the GST 2.0 regime has pushed the demand in the rural markets up, where Hero MotoCorp has a strong consumer base.

Besides that, Hero MotoCorp claims to have benefited from the capacity expansion and exports as well. Beyond that, the premium motorcycle sales of the OEM also witnessed a significant improvement, claimed the company. Hero MotoCorp stated that its quarterly vehicle sales increased by 24%, with the 125 cc motorcycles such as Xtreme and Glamour driving double-digit growth in the lower engine capacity segment.

Hero MotoCorp's earnings before interest, taxes, depreciation and amortisation margin rose 30 basis points year-on-year (YoY) to 14.7%. The company's CEO, Harshavaradhan Chitale, said that FY26 marked a defining chapter for the company. "This growth was broad-based, driven by a strong premium and EV product portfolio and momentum across both domestic and global markets," he said, while also adding, “We are encouraged by the supportive government policies, positive consumer loyalty and sentiment, and the accelerating shift towards electrification and premiumisation. These factors position us well for FY27, as we continue to lead the industry's transition towards sustainable and innovative mobility solutions."

Growth was driven by core ICE business

The commuter segment has been known as the traditional growth driver for the Indian two-wheeler market. For Hero MotoCorp as well, the 100-125 cc segment remained the key growth driver. In the last quarter, when the OEM posted a 24$ quarterly vehicle sales growth, its 125 cc models like Xtreme and Glamour played crucial roles.

Hero MotoCorp said its performance in FY26 was anchored by consistent gains in the core ICE business, with the company expanding its market share across key segments. "Growth was broad-based across 100cc-125cc, scooters and premium motorcycle segments, powered by a series of well-received product refreshes and the company's highest-ever festive season," it added.

Meanwhile, Hero MotoCorp expanded its global footprint to 52 countries with new market entries in Europe and the UK, it said, adding that the Harley-Davidson business also delivered 26 per cent growth in dispatch volume.

Harley-Davidson X440 drives premium portfolio growth

In the premium motorcycle segment, the Harley-Davidson portfolio posted a 26% year-on-year (Yoy) growth in dispatches, driven by the Harley-Davidson X440 launch, brand campaigns and network expansion, while the company's global business grew 40% in fiscal 2026.

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