Hero Motocorp Q1 FY27 Results (NSE: HEROMOTOCO)
Signal: Growth reaccelerated
The read
The operating trajectory improved sharply: consolidated revenue grew 35% YoY to ₹13126.35 crore and the authoritative EBITDA margin was 16.8%, versus the recent Q2FY26-Q4FY26 OPM plateau around 14%; however, PAT of ₹1412.36 crore fell 17.2% because Q1FY26 contained a ₹722 crore one-time associate dilution gain, so the earnings headline understates the underlying operating momentum.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹13,126.35 Cr | +35% | +1.1% |
| EBIT | ₹1,986.02 Cr | N/A | |
| Net profit | ₹1,412.36 Cr | -17.2% | |
| EPS | ₹70.59 | -17.2% | |
| EBIT margin | 16.8% |
P&L walk
Consolidated revenue reached ₹13126.35 crore, +35% YoY and +1.1% QoQ, with EBITDA margin at 16.8%; PAT declined 17.2% YoY to ₹1412.36 crore because the prior-year period included a ₹722 crore one-time associate dilution gain.
Segments
No formal segment-results table was supplied, but VIDA growth of 151%, Global Business growth of 63% and Harley-Davidson Business growth of 105% were materially faster than consolidated revenue growth of 35%, while scooter dispatches more than doubled to 1,93,058 units.
Key positives
- Consolidated revenue rose 35% YoY to ₹13126.35 crore while volumes grew 23% to 16.77 lakh units, indicating that revenue growth exceeded unit growth.
- EBITDA margin was 16.8%, an improvement from the approximately 14% OPM plateau in Q2FY26-Q4FY26, suggesting an operating-margin inflection.
- VIDA grew 151% YoY, Global Business grew 63% and Harley-Davidson Business grew 105%, providing faster-growing premium, electric and international adjacencies.
- Scooter dispatches more than doubled to 1,93,058 units and the Premia network expanded to 132 outlets after 70 new touchpoints were added.
Key concerns
- Consolidated PAT declined 17.2% YoY to ₹1412.36 crore despite 35% revenue growth because the prior-year comparison included a ₹722 crore one-time associate dilution gain.
- The supplied filing contains conflicting EBITDA disclosures: authoritative XBRL reports ₹2205.85 crore and 16.8% margin, while the press release reports consolidated EBITDA of ₹1746 crore; this requires reconciliation before using the margin as a clean trend series.
- Consolidated PAT of ₹1412.36 crore was ₹42.12 crore below standalone PAT of ₹1454.48 crore, indicating modest dilution from subsidiaries and associates.
Earnings quality: includes non-operating other income
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