Hero Motors Q1-FY27 Consolidated PAT Up 146% YoY

Key Financial Figures - Consolidated Basis (Q1-FY27 vs Q1-FY26)

• Revenue from Operations: ₹3,193 Mn, up 24.9% YoY (from ₹2,557 Mn).
• EBITDA: ₹393 Mn, up 45.9% YoY (from ₹269 Mn).
• EBITDA Margin: 12.17%, an expansion of 197 basis points (from 10.20%).
• Profit Before Tax (PBT): ₹156 Mn, up 140.0% YoY (from ₹65 Mn).
• Profit After Tax (PAT): ₹96 Mn, up 146.2% YoY (from ₹39 Mn).
• PAT Margin: 2.97%, an expansion of 150 basis points (from 1.47%).
• Diluted EPS: ₹0.27, up 115.1% YoY (from ₹0.12).

Key Financial Figures - Standalone Basis (Q1-FY27 vs Q1-FY26)

• Revenue from Operations: ₹2,819 Mn, up 28.3% YoY (from ₹2,197 Mn).
• EBITDA: ₹454 Mn, up 88.4% YoY (from ₹241 Mn).
• EBITDA Margin: 16.11%, an expansion of 515 basis points (from 10.96%).
• Profit Before Tax (PBT): ₹312 Mn, up 170.9% YoY (from ₹115 Mn).
• Profit After Tax (PAT): ₹234 Mn, up 168.8% YoY (from ₹87 Mn).
• PAT Margin: 8.30%, an expansion of 434 basis points (from 3.96%).
• Diluted EPS: ₹0.61, up 165.2% YoY (from ₹0.23).

Business Segments and Product Portfolio

The company operates as an integrated powertrain solutions provider with a diversified portfolio:

• Gears & Transmissions (G&T): Products include gears, shafts, gearsets, and gearbox assemblies & EDUs. Applications span two-wheelers, three-wheelers, passenger cars, commercial vehicles, off-road/specialty vehicles, aerospace, and marine.
• Bike Powertrain (BPT): Caters exclusively to the EV market. Products include CVT systems and Motors & E-Drive Units for micromobility.
• Alloys & Metallics (A&M): Provides alloy and metallic solutions for e-bikes, bikes, and two-wheelers.

The G&T and A&M segments are powertrain neutral.

Strategic Initiatives and Partnerships

The presentation outlines several key strategic partnerships and joint ventures:

• Joint Venture with STP Group: Formation of Munjal STP Industries Private Limited (incorporated July 22, 2025) for precision forgings. Hero Motors holds a 51% stake, and STP Group holds 49%.
• Joint Venture with Yamaha: Focused on the co-development of hub motors.
• Technology Partnerships: Includes a DCT technology license and co-development of CVTs with global players.

Key Strategies

Management's stated strategies for growth include:

1. Leveraging Hewland's expertise for design-to-cost product and service solutions.

2. Providing complete systems and powertrain solutions for the e-mobility segment.

3. Expanding into other market segments (e.g., aerospace, marine) and geographies (e.g., ASEAN).

4. Strengthening partnerships with global players for technology.

5. Pursuing inorganic growth opportunities via acquisitions and JVs.

Research & Development and Capabilities

The company highlights its advanced design, prototyping, and validation capabilities, covering the full value chain in transmission systems. It has undertaken projects for sectors including aerospace (e.g., reducers for electric VTOL aircraft, transmissions for hydrogen fuel cell aircraft), marine (e.g., reducers for hydro-foiling electric boats), and automotive.

Board of Directors and Management

The document provides detailed profiles of the board and senior management, emphasizing extensive experience.

• Chairman: Pankaj Munjal (45+ years experience, associated since 1998).
• Managing Director & CEO: Amit Gupta (Advanced Management program from Harvard Business School, associated with Hero group since 2004).
• Whole Time Director: Abhishek Munjal (9+ years experience).
• Other Directors: Andrew Charles Palmer, Sridhar Narayan, Ashok Kumar Taneja, Kulbir Singh, Pratibha Goyal.
• Senior Management: Includes Chandra Shekhar Mittal (COO – Gear & Transmission), Anil Rathi (COO - Bike Powertrain), Utkarsh Sanghi (CFO), Ajay Sood (COO – Alloys & Metallics), among others. The majority have been associated with the company for over five years.

Regulatory and Compliance Information

The presentation was filed in compliance with Regulation 30 and Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It has been hosted on the company's website at www.heromotors.com.

Disclaimer

The document contains standard forward-looking statements disclaimer, noting that the information is not current after the date of the presentation and that actual results may differ materially from projected results due to various risks and uncertainties. An additional disclaimer is provided by Valorem Advisors, the company's Investor Relations firm.