Hero MotoCorp shares decline 3% as PAT misses estimates; key factors to know from Q2 FY27 earnings

The two-three-wheeler maker’s standalone net profit increased 5% to ₹1,456 crore for the quarter ended September 30, 2026 (Q2 FY27), as compared to ₹1,392 crore in the corresponding quarter of the previous fiscal year.

The Gurugram-based company’s revenue from operations jumped 21% to ₹14,687 crore in the reporting quarter as against ₹12,126 crore seen in the year-ago period.

On the operational level, Hero MotoCorp’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at ₹1,967 crore in contrast to ₹1,823 crore year-on-year (YoY), marking a growth of 8%.

The EBITDA margin, however, contracted to 13.39% as against 15.03% YoY.

On a consolidated basis, Hero MotoCorp’s revenue and profit after tax (PAT) were ₹14,971 crore and ₹1861 crore, respectively.

The firm said that the results for the quarter and half-year include a ₹397 crore gain from the equity consolidation of an associate company, following its capital raise via a qualified institutional placement (QIP) and private placement.

Along with the earnings, Hero MotoCorp said that it will invest up to ₹300 crore in its wholly owned subsidiary, HMCL Netherlands B.V., in one or more tranches to further invest in its subsidiaries, HMCL Colombia S.A.S. and Hero MotoCorp Do Brasil Ltda.

The manufacturer of motorcycles and scooters said for the Q2 and half-year (April–September 2026) of FY27, it delivered a strong performance across all its segments, including premium, scooter, electric mobility, global business and commuter.

On a standalone basis, the company witnessed volume growth of 10% in Q2 FY27 and a sequential growth of 11% over Q1 FY27.

Missed PAT estimates

However, the analysts said that the firm’s profit after tax (PAT) was under their estimates. Analysts at Jefferies said Hero MotoCorp’s EBITDA rose 8% annually in Q2 FY27, in line with estimates, as volumes grew 11%. Net profit increased 5% year-on-year but missed estimates by 4% due to lower financial income.

Further, JP Morgan analysts said Hero MotoCorp’s revenue and EBITDA beat their estimates. The EBITDA margin stood at 13.4%, and adjusted net profit increased 5% but missed estimates. Better gross margins supported earnings, while commodity costs and the growth outlook remained key monitorables.

Management commentary

“We delivered a strong performance this quarter, with scooters emerging as a key growth contributor, supported by healthy momentum across both, ICE and VIDA electric portfolio. This reflects the strength of our product offerings and our ability to respond to evolving customer aspirations across segments,” said Harshavardhan Chitale, Chief Executive Officer, Hero MotoCorp.

Chitale said the 100cc motorcycle segment continued to contribute to overall growth, highlighting the resilience of the company’s portfolio. He added that the company would focus on sustaining this momentum, driving profitable growth and building a more diversified and future-ready business.

At 11:54 AM, shares of Hero MotoCorp were trading at ₹5,197 apiece on the National Stock Exchange, falling 2.36%.

According to NSE data, as of October 29, 2026, Hero MotoCorp has a total market capitalisation of ₹1.04 lakh crore.