India's Hero MotoCorp beats Q4 profit expectations on strong domestic demand (updated)

Hero Motocorp

05/05/2026 16:19

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May 5 (Reuters) - Hero MotoCorp HROM.NS, India's top two-wheeler maker, beat quarterly profit estimates on Tuesday, driven by strong domestic demand, which accounts for more than 90% of its sales.

The Splendor motorcycle maker benefited from a tax cut on motorcycles with engines up to 350cc — the bulk of its sales — as well as capacity expansion, exports and rising premium motorcycle sales amid improving rural demand.

Quarterly vehicle unit sales rose 24%, with its 125cc Glamour and Xtreme models driving double-digit growth in the lower-engine-capacity segment.

Analysts, however, expect industry growth to slow once the boost from the tax cuts fades after April-September.

On the premium end, its Harley-Davidson portfolio posted 26% year-on-year growth in dispatches, driven by the X440 launch, brand campaigns and network expansion, while the company's global business grew 40% in fiscal 2026.

The company posted a near 30% rise in fourth-quarter profit to 14.01 billion rupees ($147.04 million), topping analysts' estimates of 13.35 billion rupees, according to data compiled by LSEG.

Revenue rose about 29% to 127.96 billion rupees, also beating analysts' expectations of 124 billion rupees, while its total expenses increased about 28%.

Hero's earnings before interest, taxes, depreciation and amortisation margin rose 30 basis points year-on-year to 14.7%.

Rivals Bajaj Auto BAJA.NS and TVS Motor TVSM.NS are yet to report their results.

($1 = 95.2800 Indian rupees)

 (Reporting by Urvi Dugar in Bengaluru; Editing by Vijay Kishore)

 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))