Hero MotoCorp Q4 FY26 Earnings Call Transcript Released

Hero MotoCorp Limited has released the transcript of its earnings conference call held on May 6, 2026, for the quarter and financial year ended March 31, 2026.

During the call, the management highlighted strong performance in FY26, achieving the highest-ever topline and bottom line, while maintaining its position as the world's largest 2-wheeler manufacturer for 25 consecutive years. Key growth areas included a 48% year-on-year growth in scooters, a 2.5x expansion in EV scooter volumes, and a 41% growth in the global business. The premium motorcycle segment, including the Harley-Davidson range, also saw a 26% year-on-year increase.

The company announced significant capex plans, committing over ₹1,500 crores for FY27 to expand capacity, particularly in scooters and EVs. Investments are also being made in building a global parts center (₹700 crores) and in brand building, with a 22% increase in advertising and promotion spend in the previous year. New product launches are a priority, with plans for exciting launches in the VIDA brand, premium ranges, and scooters in the current year. Technology investments are focused on low-emission powertrains, connected vehicles, and leveraging Gen AI.

Financially, Q4 FY26 revenue reached an all-time high of ₹12,797 crores (up 29% YoY), with EBITDA at ₹1,856 crores (up 31% YoY) and PAT at ₹1,401 crores (up 30% YoY). For the full fiscal year 2026, revenue stood at ₹46,830 crores (up 15% YoY), EBITDA at ₹6,871 crores (up 17% YoY), and PAT at ₹5,268 crores (up 14% YoY). The Board declared a final dividend of ₹75 per share, bringing the total for FY26 to ₹185 per share.

The management acknowledged commodity headwinds starting in March and potential short-term margin impacts, which are being mitigated through calibrated price increases and accelerated cost-saving programs. The medium-term margin guidance remains at 14% to 16%. The company anticipates high single-digit growth for the 2-wheeler industry in the current fiscal year and expects to grow ahead of the industry.

Regarding EV business, the company is in a build-out phase with significant R&D and capacity expansion. They are focusing on scaling up the business, securing PLI benefits for a larger portion of their portfolio, and driving BOM cost reductions to improve profitability. The appointment of Mr. Sachin Agrawal as the new CTO was also highlighted, expected to accelerate R&D transformation.