Hero MotoCorp Q2 FY25 Results: Robust 14.2% profit growth, ₹10,463.21 crore revenue
Hero MotoCorp delivered a robust performance in Q2 FY25, marking significant growth across key financial metrics. Consolidated net profit rose by 14.2% to ₹1,203.54 crore, supported by a 10.8% increase in revenue from operations, which reached ₹10,463.21 crore. The results underscore the company’s strong position in the two-wheeler industry.
Profit and Revenue Highlights
Profit before tax (PBT) for the quarter stood at ₹1,600.27 crore, reflecting a year-on-year (YoY) increase of 14.6%. The EBITDA figure climbed to ₹1,516 crore, showing a 14% growth compared to the same quarter last year. The EBITDA margin expanded by 40 basis points to 14.5%, indicating operational efficiency and strong cost management.
The company also achieved its highest-ever quarterly revenue of ₹1,456 crore from Parts, Accessories, and Merchandising. This milestone highlights the growing demand for Hero MotoCorp’s offerings beyond its core two-wheeler products.
Impressive Sales Volume
Hero MotoCorp sold 15.20 lakh units of motorcycles and scooters during the quarter, a notable increase from the 14.16 lakh units sold in Q2 FY24. This growth was bolstered by higher rural demand, especially during the festive season. The recently concluded festive period saw Hero MotoCorp clock its highest-ever retail sales at 16 lakh units.
Strategic Focus on Premium Segment
The company is accelerating its expansion in the premium motorcycle segment. Three new models—Xpulse 210, Xtreme 250R, and Karizma XMR 250—will be introduced over the next six months. These models aim to strengthen Hero MotoCorp’s presence in the premium category and attract a broader customer base.
Premia stores, dedicated to premium models, are also set to grow. The company plans to cross 100 stores by the end of the fiscal year. These efforts align with the company’s strategy to capture a larger share of the premium two-wheeler market.
Innovation in Scooter Segment
Hero MotoCorp is planning new launches in the scooter segment, including both internal combustion engine (ICE) and electric vehicle (EV) models. By March 2025, three ICE scooters with innovative and best-in-class features will hit the market. The VIDA electric scooter portfolio is also expanding to cover all price segments, ensuring a strong foothold in the growing EV space.
Strong Festive Season Performance
The festive season proved to be a catalyst for sales, with rural demand playing a pivotal role. A strong monsoon contributed to this momentum, boosting consumer confidence in rural markets. Hero MotoCorp expects this trend to continue, supported by favorable economic conditions and robust fundamentals in the two-wheeler industry.
Financial Position and Brand Investment
The company emphasized its focus on strong cash flow management, which has further solidified its financial position. This stability enables aggressive investment in brand building and marketing efforts. Hero MotoCorp remains committed to enhancing its market presence and delivering value through innovative products.
CEO Insights
Niranjan Gupta, CEO of Hero MotoCorp, highlighted the company’s exceptional performance in both revenue and profit. He emphasized the importance of building a strong portfolio in the premium segment while maintaining dominance in the entry and deluxe categories. Gupta also pointed to the company’s plans for aggressive expansion in both ICE and EV scooter segments.
Stock Market Performance
Hero MotoCorp’s stock rose by 1.84% on Thursday, closing at ₹4,604.30. This reflects investor confidence in the company’s growth trajectory and strategic initiatives. The stock market remains closed today due to Guru Nanak Jayanti.
Market Leadership and Future Outlook
Hero MotoCorp continues to lead the two-wheeler industry in India, supported by a dominant domestic market presence. The company’s focus on innovation, rural demand, and premium segment growth positions it well for sustained success.
The outlook for the Indian economy and two-wheeler industry remains optimistic. Favorable monsoon conditions and rising rural demand are expected to drive growth further. Hero MotoCorp is well-poised to capitalize on these trends, strengthening its leadership in the sector.
Hero MotoCorp’s strong Q2 FY25 performance demonstrates its ability to adapt and innovate in a competitive market. Strategic expansions in premium motorcycles, scooters, and EVs underscore its commitment to growth and leadership. With robust financials and a clear vision for the future, Hero MotoCorp remains a key player shaping the two-wheeler industry’s trajectory.
