Earnings
Home›Earnings›Results›Hero MotoCorp revenue jumps as EVs and premium models…
Hero MotoCorp revenue jumps as EVs and premium models drive mix
In the June quarter, revenue rose 36% year-on-year to ₹13,000 crore, helped by 23% volume growth to 1.68 million units and an 8% positive mix benefit.
Hero MotoCorp reported a June quarter earnings beat, sending its shares up about 6% over the past two trading sessions to ₹5,890, according to LiveMint Markets. The company said revenues rose 36% year-on-year to ₹13,000 crore, supported by 23% volume growth to 1.68 million units.
The results highlighted a shift in mix toward EVs, scooters and premium variants, which contributed an 8% positive mix benefit. However, gross margin contracted, with standalone gross margin falling 475 basis points year-on-year and 297 basis points sequentially to 28.5%.
Management pointed to inflation pressures tied to the war in West Asia, which lifted costs across oil and gas, freight, foreign exchange, and core raw materials including steel, aluminium and precious metals. To manage the impact, Hero implemented cumulative blended price hikes of about 4.5% across its internal combustion engine portfolio since late February, along with early double-digit increases for EV variants.
Hero also cited accelerated cost savings under its internal Leap program and operating leverage, which helped limit the EBITDA margin decline to 114 basis points on-year and 122 basis points sequentially to 13.3%. The company said EV inventory is 2-3 days, and plans to raise EV capacity to 45,000 units per month by end-FY27 from 30,000 units per month currently, while its VIDA EV brand expanded market share to 10.9%.