Hero MotoCorp Ltd. reported a 16.86% year-on-year decline in consolidated profit after tax (PAT) to ₹1,417.93 crore for the first quarter of FY27, mainly due to a high base effect from the previous year.
The two-wheeler manufacturer had reported a consolidated net profit of ₹1,705.65 crore in the corresponding quarter of the previous financial year.
The company clarified that the year-ago profit included a one-time gain of ₹722 crore following the dilution of its investment in associates through a public issue and private placement. Excluding the impact of this exceptional gain, the underlying performance was stronger.
Revenue Rises 35%
Despite the decline in reported profit, Hero MotoCorp recorded strong growth in revenue during the quarter.
Consolidated revenue from operations increased to ₹13,126.35 crore, compared with ₹9,727.75 crore in the same period last year.
This represents a year-on-year increase of around 35%, supported by higher vehicle sales and growth across the company’s business segments.
Two-Wheeler Sales Jump 23%
Hero MotoCorp sold 16.77 lakh motorcycles and scooters during the April-June quarter, marking a 23% year-on-year increase.
The company attributed the growth to broad-based demand across its portfolio, including commuter motorcycles, premium products and electric mobility.
The strong sales performance comes as India’s two-wheeler market continues to benefit from improving consumer demand and rural economic conditions.
Expenses Also Increase
Total expenses during the quarter increased to ₹11,621.48 crore, compared with ₹8,541.12 crore a year earlier.
The increase reflects the company’s higher sales volumes as well as increased costs associated with its expanding operations and product portfolio.
Despite higher expenses, the company maintained strong operational momentum and delivered growth across several key business segments.
Premium and Electric Segments Gain Momentum
Hero MotoCorp CEO Harshavardhan Chitale said the company began FY27 with strong momentum, with growth across its premium, electric mobility, commuter and international businesses.
The company has been working to diversify beyond its traditional commuter motorcycle segment by expanding its premium product portfolio and strengthening its electric mobility business.
The strategy is aimed at capturing demand from customers moving towards higher-value motorcycles as well as the rapidly developing electric two-wheeler market.
Parts and Accessories Business Grows 30%
Hero MotoCorp’s Parts, Accessories and Merchandising (PAM) business also recorded strong growth during the quarter.
Revenue from the segment reached ₹1,689 crore, representing a 30% increase compared with the previous year.
The growth provides an additional revenue stream for the company beyond vehicle sales and reflects the expanding installed base of Hero motorcycles and scooters.
Strong Start to FY27 Despite Profit Decline
Hero MotoCorp’s Q1 results present a mixed picture, with reported PAT declining because of the previous year’s one-time gain, while its core operating indicators showed strong growth.
Vehicle volumes increased by 23%, revenue rose by around 35%, and the PAM business grew by 30%.
The company is also continuing to invest in premium motorcycles, electric mobility and international markets as it seeks to strengthen its position across India’s evolving two-wheeler market.
With higher sales volumes and a broader product portfolio, Hero MotoCorp is entering FY27 with a focus on maintaining growth while expanding beyond its traditional commuter-bike dominance.
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