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Hero MotoCorp Q4 Results: At Rs 1,401 crore, PAT beats Street estimates; revenue up 29%
Hero MotoCorp Q4 FY26 Results: Hero MotoCorp has staged a strong financial performance for the final three months of FY26 and declared a 3,750 per cent dividend. Read on to learn about the motorcycle maker's latest earnings.
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Citi maintained a 'buy' call on Hero MotoCorp with a target of Rs 6,900 after the earnings announcement. The target suggests an upside of 35 per cent from the previous close.
Written By: ZeeBiz WebTeam
Updated: Wed, May 06, 2026
09:09 AM IST
09:09 AM IST
New Delhi, ZeeBiz WebDesk
Hero MotoCorp Q4 FY26 Results: New Delhi-headquartered auto giant Hero MotoCorp on Tuesday reported a consolidated net profit of Rs 1,401 crore for the quarter ended March 31, marking a year-on-year jump of 29.6 per cent that beat analysts' expectations. For the corresponding period a year ago, the company had registered a net profit of Rs 1,081 crore.
Hero MotoCorp's March-quarter revenue grew 28.8 per cent to Rs 12,797 crore, according to a regulatory filing. The company's revenue had stood at Rs 9,939 crore a year ago.
Hero MotoCorp Q4 FY26 Earnings: Headline numbers vs estimates
Both top and bottom lines exceeded Street estimates.
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According to Zee Business research, the auto major was estimated to register a net profit of Rs 1,388 crore with revenue of Rs 12,410 crore.
Sales volumes
The company recorded 24 per cent growth in volumes to 17.14 lakh motorcycles and scooters in Q4.
Operational performance
The auto major registered March-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) -- a key measure of operating income -- of Rs 1,856 crore, a 31 per cent rise over the year-ago period, according to the filing.
Its quarterly margin improved by 30 basis points (bps) to 14.5 per cent, 50 bps short of what analysts had expected.
According to Zee Business research, Hero MotoCorp's fourth-quarter EBITDA was pegged at Rs 1,802 crore and margin at 15 per cent.
FY26 results
For the year ended March 31, the auto maker reported a net profit of Rs 5,268 crore, up 14 per cent over the previous year.
Its profit before tax (PBT) before exceptional items rose 16 per cent to Rs 7,091 crore, acccording to a company statement.
Revenue for the year rose 15 per cent to Rs 46,830 crore, as sales volumes grew 10 per cent to 64.69 lakh motorcycles and scooters.
The company's FY26 EBITDA rose 17 per cent to Rs 6,871 crore, while its margin expanded by 30 bps to 14.7 per cent.
Management commentary
Describing FY26 as a "defining chapter for Hero MotoCorp", CEO Harshavaradhan Chitale said: "Our record performance reflects not only our sustained leadership as the world’s largest manufacturer of motorcycles and scooters for 25 consecutive years, but also our commitment to defining the future of mobility. This growth was broad-based, driven by a strong premium and EV product portfolio and momentum across both, domestic and global markets."
"As we look ahead, we are encouraged by the supportive government policies, positive consumer loyalty and sentiment, and the accelerating shift towards electrification and premiumisation. These factors position us well for FY’27, as we continue to lead the industry’s transition towards sustainable and innovative mobility solutions," he added.
Hero MotoCorp dividend
The auto maker declared a dividend of Rs 75 per equity share -- a payout of 3,750 per cent given the face value of Re 2 per equity share. Read more on Hero dividend
Hero MotoCorp shares vs Nifty 50 vs Nifty Auto
Earlier in the day, the Hero MotoCorp stock rose 0.9 per cent to close at Rs 5,112.9 apiece on BSE.
At this level, the auto stock is down 12.2 per cent for the year, worse than the Nifty 50 and Nifty Auto indices' declines of 8.1 per cent and 7.1 per cent, respectively.
Should you buy, sell or hold Hero shares post-results?
| Brokerage | Rating | Target Price (Rs) | Upside vs May 5 close (%) |
| Morgan Stanley | Overweight | 6,537 | 27.86 |
| JPMorgan | Overweight | 6,385 | 24.87 |
| Citi | Buy | 6,900 | 34.96 |
After the earnings were announced, Morgan Stanley maintained its 'overweight' rating on Hero MotoCorp with a target price of Rs 6,537 per share. At Tuesday's closing price, the target indicates an upside of 27.9 per cent in the stock.
Stating that the results were in line with its estimates, the brokerage noted that Hero's average selling prices (ASPs) grew 2.7 per cent, its gross margin declined by 110 bps and its EBITDA margin declined by 20 bps sequantially.
Citi maintains 'buy' on Hero, target Rs 6,900
Citi retained its 'buy' rating on Hero MotoCorp with a target of Rs 6,900 -- indicating an upside of 35 per cent.
According to the brokerage, the auto maker's Q4 EBITDA was slightly ahead of its estimates and PAT with in line with expectations on account of lower other income.
The company has witnessed robust demand post-GST 2.0 cuts, and its efforts in boosting its market share in scooters and EVs are gradually fructifying, according to Citi.
Hero's cost-reduction initiatives are supporting its margins, noted the brokerage. It also noted that a possible inflationary macroenvironment and any adverse rural income trend could be potential headwinds going forward.
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