StrengthTalking point
Profit outpacing revenue
Profit grew 32.0% while revenue grew 15.9%, so the company kept more of each rupee of revenue as profit.
Importance 64 / 95 · growth
Hero MotoCorp Limited · Research view
Hero MotoCorp Limited
NSE: HEROMOTOCOBSE: 500182ISIN INE158A01026Face value ₹2consolidated
₹5,173
−1.22% · 2026-10-01 · 52-wk ₹4,776–₹6,351
Financials to FY2026 · 8 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
StrengthTalking point
Returns at a multi-year high
ROE of 28.0% is the highest in 7 years (prior range 14.8% to 26.3%).
Importance 55 / 95 · profitability
Context
Lower P/E than peers
Trades at 18.86× earnings — 34% below the 2 3 wheelers median of 28.69×.
Importance 49 / 95 · valuation
Section 03 · The company
Who is this company?
Classified by the exchange under Consumer Discretionary › Automobile and Auto Components › Automobiles › 2/3 Wheelers.
- Market cap
- ₹1.04 L cr
- FY2026 revenue
- ₹47,411 cr
- FY2026 net profit
- ₹5,776 cr
- Net worth
- ₹21,811 cr
- Total debt
- ₹499 cr
- EPS (basic)
- ₹287.01
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 4 2/3 wheelers.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Strength
Profit grew 32.0% while revenue grew 15.9%, so the company kept more of each rupee of revenue as profit.
Rule PROFIT_FASTER_THAN_REVENUE
- Revenue growth per year
- +4.9%over 7 years
- Revenue growth
- +15.9%vs last year
- Net profit growth
- +32.0%vs last year
- Change in net profit since FY19
- +67%
Net profit grew 32.0% year on year (FY2025 → FY2026).
Revenue has compounded at 4.9% a year over 7 years (₹33,972 → ₹47,411) — steady rather than rapid.
Revenue grew 15.9% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 revenue was ₹13,126 cr, up 34.9% from ₹9,728 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Watch
Q1 FY27 net profit declined 16.9% while revenue grew 34.9% vs the same quarter last year — a gap of 51.8 percentage points.
Rule QTR_PROFIT_VS_REVENUE_GROWTH
Concern
Q1 FY27 net profit was ₹1,418 cr, down 16.9% from ₹1,706 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 10,483 | — | 1,066 | — | 10.2% |
| Q3 FY25 | 10,260 | +4.8% | 1,108 | +1.6% | 10.8% |
| Q4 FY25 | 9,970 | +3.7% | 1,169 | +23.9% | 11.7% |
| Q1 FY26 | 9,728 | −4.7% | 1,706 | +65.2% | 17.5% |
| Q2 FY26 | 12,218 | +16.6% | 1,321 | +23.9% | 10.8% |
| Q3 FY26 | 12,487 | +21.7% | 1,275 | +15.0% | 10.2% |
| Q4 FY26 | 12,978 | +30.2% | 1,474 | +26.1% | 11.4% |
| Q1 FY27 | 13,126 | +34.9% | 1,418 | −16.9% | 10.8% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹50,810 crTTM
- EBITDA
- ₹8,586 crTTM
- EBIT
- ₹7,717 crTTM
- PBT
- ₹7,519 crTTM
- Net profit
- ₹5,488 crTTM
C. Corporate actions
24 Jul 2026DividendFinal Dividend - Rs. - 75.0000 — ₹75.00/share
11 Feb 2026DividendInterim Dividend - Rs. - 110.0000 — ₹110.00/share
24 Jul 2025DividendFinal Dividend - Rs. - 65.0000 — ₹65.00/share
12 Feb 2025DividendInterim Dividend - Rs. - 100.0000 — ₹100.00/share
1 Aug 2024DividendFinal Dividend - Rs. - 40.0000 — ₹40.00/share
21 Feb 2024DividendInterim Dividend - Rs. - 75.0000 — ₹75.00/share
21 Feb 2024DividendSpecial Dividend - Rs. - 25.0000 — ₹25.00/share
27 Jul 2023DividendFinal Dividend - Rs. - 35.0000 — ₹35.00/share
17 Feb 2023DividendInterim Dividend - Rs. - 65.0000 — ₹65.00/share
27 Jul 2022DividendFinal Dividend - Rs. - 35.0000 — ₹35.00/share
21 Feb 2022DividendInterim Dividend - Rs. - 60.0000 — ₹60.00/share
22 Jul 2021DividendFinal Dividend - Rs. - 25.0000 — ₹25.00/share
22 Jul 2021DividendSpecial Dividend - Rs. - 10.0000 — ₹10.00/share
15 Feb 2021DividendSpecial Dividend - Rs. - 5.0000 — ₹5.00/share
15 Feb 2021DividendInterim Dividend - Rs. - 65.0000 — ₹65.00/share
30 Jul 2020DividendFinal Dividend - Rs. - 25.0000 — ₹25.00/share
17 Feb 2020DividendInterim Dividend - Rs. - 65.0000 — ₹65.00/share
16 Jul 2019DividendFinal Dividend - Rs. - 32.0000 — ₹32.00/share
11 Feb 2019DividendInterim Dividend - Rs. - 55.0000 — ₹55.00/share
11 Jul 2018DividendFinal Dividend - Rs. - 40.0000 — ₹40.00/share
15 Feb 2018DividendInterim Dividend - Rs. - 55.0000 — ₹55.00/share
30 Jun 2017DividendFinal Dividend - Rs. - 30.0000 — ₹30.00/share
16 Mar 2017DividendInterim Dividend - Rs. - 55.0000 — ₹55.00/share
15 Sept 2016DividendFinal Dividend - Rs. - 32.0000 — ₹32.00/share
21 Mar 2016DividendInterim Dividend - Rs. - 40.0000 — ₹40.00/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Strength
ROE of 28.0% is the highest in 7 years (prior range 14.8% to 26.3%).
Rule ROE_AT_MULTI_YEAR_HIGH
- EBITDA margin now
- 17.1%
- 8-year range
- 13.5–17.1%
- ROE FY2026
- 28.0%
- ROCE FY2026
- 34.4%
ROE improved from 23.5% to 28.0% year on year.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Strength
Free cash flow has been positive in 6 of the last 6 years.
Rule FCF_CONSISTENTLY_POSITIVE
Operating cash flowNet profit
- Total debt
- ₹499 cr
- Operating cash flow ÷ net profit
- 1.44×FY2026
- Free cash flow
- ₹7,227 cr
- Current ratio
- 1.91×
Section 08 · Relative position
How does it compare with peers?
Ranked against 4 2/3 wheelers (FY2026, consolidated).
Revenue growth
HEROMOTOCO · 4th of 4 · set median 23.7%
EBITDA margin
HEROMOTOCO · 3rd of 4 · set median 20.7%
Return on equity
HEROMOTOCO · 3rd of 4 · set median 28.0%
P/E ratio
HEROMOTOCO · 1st of 4 · set median 28.7×
Context
Trades at 18.86× earnings — 34% below the 2 3 wheelers median of 28.69×.
Rule PE_BELOW_PEERS
- P / E
- 18.9×TTM to Jun 26
- P / B
- 4.7×latest book
- P / S
- 2.0×TTM sales
- Earnings yield
- 5.3%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 17.9× · P/S 2.1× · ROE 28.0%.
Section 09 · The stock
How has the stock performed?
Context
Over 5 years profit (14.5% a year) and the stock (12.7% a year) compounded at roughly the same rate.
Rule STOCK_TRACKED_EARNINGS
- 1-year return
- −4.8%
- 3-year return
- +69.2%
- 5-year return
- +81.6%
- From 52-wk high
- −18.5%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹5,446
- vs 200-day avg
- Below₹5,347
- RSI (14)
- 41.8neutral
- MACD histogram
- -9.6
- From 52-wk high
- −18.5%
- From 52-wk low
- +8.3%
- 30-day volatility
- 26.8%ann.
- 6-month return
- +2.2%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
Nothing is flagged for review for this company.
- Cash-flow-statement facts are unavailable for FY2019, FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 33,972 | 29,255 | 30,959 | 29,551 | 34,158 | 37,789 | 40,923 | 47,411 |
| Total income | 34,659 | 29,986 | 31,517 | 30,106 | 34,727 | 38,643 | 41,968 | 48,469 |
| EBITDA | 5,705 | 4,791 | 4,657 | 4,000 | 4,663 | 6,204 | 6,990 | 8,103 |
| Profit before tax | 5,044 | 4,576 | 3,896 | 3,257 | 3,861 | 5,210 | 6,095 | 7,051 |
| Net profit | 3,466 | 3,659 | 2,936 | 2,329 | 2,800 | 3,742 | 4,376 | 5,776 |
| EPS (₹) | 172.4 | 182.2 | 146.1 | 116.0 | 140.6 | 187.4 | 219.0 | 287.0 |
| Net worth | 13,237 | 14,547 | 15,560 | 15,995 | 16,781 | 17,835 | 19,404 | 21,811 |
| Total debt | 309 | 210 | 330 | 353 | 313 | 363 | 457 | 499 |
| Operating cash flow | — | — | 4,110 | 2,104 | 2,614 | 4,923 | 4,297 | 8,315 |
| Free cash flow | — | — | 3,529 | 1,545 | 2,052 | 4,146 | 3,463 | 7,227 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | -13.9 | 5.8 | -4.5 | 15.6 | 10.6 | 8.3 | 15.9 |
| Profit growth YoY | — | 5.6 | -19.8 | -20.7 | 20.2 | 33.7 | 16.9 | 32.0 |
| Profitability | ||||||||
| EBITDA margin % | 16.8 | 16.4 | 15.0 | 13.5 | 13.7 | 16.4 | 17.1 | 17.1 |
| Net margin % | 10.0 | 12.2 | 9.3 | 7.7 | 8.1 | 9.7 | 10.4 | 11.9 |
| Return on equity % | 26.2 | 26.3 | 19.5 | 14.8 | 17.1 | 21.6 | 23.5 | 28.0 |
| Return on capital % | 37.5 | 27.9 | 25.7 | 20.5 | 23.7 | 30.9 | 32.4 | 34.4 |
| Leverage & cash | ||||||||
| Debt to equity | 0.02 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Cash flow ÷ profit | — | — | 1.40 | 0.90 | 0.93 | 1.32 | 0.98 | 1.44 |
| Current ratio | 1.91 | 2.02 | 1.75 | 1.92 | 1.57 | 1.46 | 1.80 | 1.91 |