Company Overview
Hero MotoCorp Limited (NSE: HEROMOTOCO, BSE: 500182) reported exceptional financial and operational performance for FY 2025-26, maintaining its position as the world's largest two-wheeler manufacturer for 25 consecutive years.
Financial Performance
Standalone Results:
- Revenue from Operations: ₹46,830.14 crore (14.90% YoY growth from ₹40,756.37 crore)
- Profit After Tax: ₹5,268.21 crore (14.28% YoY growth from ₹4,609.95 crore)
- EBITDA: ₹6,870.76 crore (17.10% YoY growth)
- EPS: ₹263.34 (basic) and ₹263.07 (diluted)
Consolidated Results:
- Revenue: ₹47,411.24 crore
- Profit After Tax Attributable to Owners: ₹5,741.73 crore
Dividend Declaration
The Board recommended a final dividend of ₹75 per share, following an interim dividend of ₹110 per share paid in February 2026, resulting in a total dividend payout of ₹185 per share (9,250%) for FY26. The record date for the final dividend is July 24, 2026, with payment to be made by September 4, 2026.
AGM Details
The 43rd Annual General Meeting will be held on August 5, 2026, at 11:30 AM via video conference. Key agenda items include adoption of financial statements, dividend declaration, and re-appointment of Dr. Pawan Munjal as Executive Chairman for a five-year term with a revised remuneration structure that includes a voluntary 15% salary reduction. Remote e-voting will be available from July 31 to August 4, 2026, through the NSDL platform.
Operational Highlights
- Production Volume: 64.69 lakh units (vs. 58.99 lakh units in FY25)
- Record Exports: 402,786 units with 40.13% YoY growth
- Key Growth Markets: Colombia (103.62% retail growth), Bangladesh (16.73% retail growth)
- New Market Entries: Europe (UK, Italy, France, Spain), Ecuador, Sri Lanka re-entry
- Cost Optimization: Achieved savings of ₹534 crore through LEAP program
- R&D Investment: ₹1,128.97 crore with 168 patent applications filed
ESG Performance & Sustainability
Hero MotoCorp demonstrated strong environmental commitment with:
- Carbon Neutrality: 45% achieved (target: 100% by 2030)
- Water Positivity: 500% achieved
- Zero Waste to Landfill: 100% operations
- Renewable Energy: 32% share achieved
- Emissions: Scope 1: 21,290 tCO2e, Scope 2: 69,467 tCO2e (externally assured by Bureau Veritas)
- CSR Spending: ₹97.30 crore (exceeding 2% requirement), benefiting over 5.28 lakh people
Investments & Subsidiaries
The company made significant strategic investments including:
- ₹510 crore in Euler Motors Private Limited (34.12% stake)
- ₹330 crore in Zero Motorcycles
- Investments in Ather Energy Limited (30.07% stake, carrying amount: ₹1,093.39 crore)
- Hero FinCorp Limited (40.45% stake, carrying amount: ₹2,407.02 crore, DRHP filed for IPO)
Subsidiaries include HMCL Colombia S.A.S. (58.79% ownership), HMCL Netherlands B.V., Hero Tech Center Germany GmbH, and newly incorporated Hero MotoCorp Do Brasil Ltda for future market entry.
Corporate Governance & Leadership
The Board proposed re-appointment of Dr. Pawan Munjal as Executive Chairman from October 1, 2026, to September 30, 2031, recognizing his leadership achievements including 12.2% PAT CAGR and 8.7% Revenue CAGR from 2021-2026. The company maintained strong governance standards with unmodified auditor reports and no penalties from regulatory authorities.
Market Position & Recognition
Hero MotoCorp maintained market leadership with 130+ million cumulative customers worldwide and presence in 52 countries. The company received numerous awards including Dow Jones Sustainability Index inclusion (#1 two-wheeler company globally), "Manufacturer of the Year 2025," and TIME100 Climate recognition for Dr. Pawan Munjal.
Outlook
The company continues to focus on premiumization, electric vehicle expansion through VIDA brand (~7% market share), global market penetration, and sustainability initiatives while maintaining cost discipline through the LEAP program.