Hero Motors Shares Rise After Quarterly Profit More Than Doubles to ₹10.2 Crore

Hero Motors shares gained in trading after the automotive components manufacturer reported a sharp improvement in its financial performance for the July–September quarter of FY2026-27. The company’s net profit more than doubled year-on-year to ₹10.2 crore, supported by stronger revenue and a substantial increase in operating earnings.

Hero Motors reported a net profit of ₹10.2 crore for the second quarter, compared with approximately ₹4.73 crore in the corresponding period a year earlier. The increase of more than 115% highlighted an improvement in the company’s quarterly performance and helped attract market attention following the results announcement.

The company’s revenue also recorded healthy growth, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose considerably faster than sales. The results indicate improved operating performance, although the sustainability of this growth will depend on business conditions and performance in subsequent quarters.

Revenue Increases Nearly 25% Year-on-Year

Hero Motors recorded revenue of ₹319.3 crore in the September quarter, up 24.9% from ₹255.7 crore in the same quarter last year.

The increase of nearly ₹64 crore reflects stronger revenue generation during the period. Revenue growth is an important indicator for automotive component manufacturers, whose performance depends on demand from vehicle producers, product mix and orders across their target markets.

Hero Motors develops and manufactures powertrain and other technology solutions for automotive applications. Its business serves customers across multiple markets, including India, Europe, the United States and Southeast Asia.

The company’s product portfolio covers applications ranging from two-wheelers and electric bicycles to electric and hybrid vehicles and other specialised automotive segments. Demand across these categories can influence its revenue and profitability.

EBITDA Nearly Doubles as Margins Improve

The company’s operating performance strengthened alongside revenue growth. EBITDA increased to ₹35.9 crore in the second quarter, compared with ₹18.7 crore in the corresponding quarter of the previous financial year, representing growth of approximately 92%.

EBITDA measures earnings before interest, taxes, depreciation and amortisation and is commonly used to assess a company’s operating performance before financing and certain accounting expenses.

Hero Motors’ EBITDA margin rose to around 11.3%, compared with 7.3% a year earlier. The improvement suggests that the company generated more operating earnings from each rupee of revenue during the quarter.

However, investors will need to monitor whether the improved margin can be maintained as production costs, demand conditions and the company’s product mix change.

Proposed Expansion of UK Subsidiary

Hero Motors has also proposed increasing its ownership in UK-based Hewland Engineering Limited, a business specialising in high-performance transmission and drivetrain components.

The proposed transaction involves purchasing an additional 39% stake from existing shareholders William Hewland and Siobhan Hewland for approximately £0.60 million. If completed as planned, Hero Motors’ ownership would rise from 51% to 90%.

Hewland Engineering operates in areas including performance automotive, motorsport, electric vehicles and aerospace-related engineering. Its specialised capabilities could complement Hero Motors’ broader automotive technology business.

The proposed acquisition is expected to take approximately six months to complete, based on the announced transaction details.

What Investors Will Watch Next

The latest results provide three important indicators for investors: stronger revenue, rapid growth in operating earnings and an improvement in EBITDA margin. The proposed increase in ownership of Hewland Engineering also signals a potential expansion of Hero Motors’ control over its UK subsidiary.

Nevertheless, a single quarter does not establish a long-term trend. Investors are likely to watch future revenue growth, margin performance, cash generation and the progress of the proposed acquisition.

Hero Motors’ latest financial results have strengthened its quarterly earnings profile. Whether the improvement translates into sustained business growth will depend on execution, market demand and the company’s ability to maintain operating efficiency in the coming quarters.