Hero MotoCorp Limited Q4FY25 Result Analysis

Hero MotoCorp Limited primarily engages in the manufacture and sale of motorized two-wheelers across India, Asia, Central and Latin America, Africa, and the Middle East. The company offers a wide range of motorcycles, scooters, and electric scooters, along with engines, parts, accessories, and related services. Formerly known as Hero Honda Motors Ltd., it was renamed Hero MotoCorp Limited in July 2011.

Result Analysis:  Hero MotoCorp Limited  (CMP: Rs. 4,051)

Result Update: Q4FY25

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Financial Performance:

Shareholding Pattern:

Particulars (In %)	Q4FY25	Q4FY24
Promoter	34.74	34.76
FIIs	27.80	29.27
DIIs	27.91	27.76
Public & Other	9.56	8.21

Management Commentary:

• Hero MotoCorp expects the two-wheeler industry to grow at a mid-to-high single-digit rate in FY26 (6%-7%). The company has recorded consistent month-on-month market share gains in FY25 and is witnessing a recovery in demand for commuter motorcycles.
• It has announced dividend of Rs 65 per share, total dividend of Rs 165 per share.
• The company remains optimistic about the near-to-mid-term outlook, with key macroeconomic indicators—such as revised income tax slabs, potential repo rate cuts, a strengthening rural economy, and a favorable monsoon forecast—expected to support industry growth.

Outlook:

Hero MotoCorp remains optimistic about its growth prospects in FY26, supported by favorable macroeconomic indicators such as revised income tax slabs, potential repo rate cuts, a strengthening rural economy, and a positive monsoon forecast. The company expects the two-wheeler industry to grow at a mid-to-high single-digit rate and anticipates continued recovery in commuter motorcycle demand. Strategic investments in electric mobility, including stakes in Ather Energy and Euler Motors, are expected to enhance its EV portfolio. With consistent gains in market share and improved operational performance. It has posted an EPS of Rs 218.69 in FY25. The stock currently trading at a P/E of 18.52x and P/B of 4.2x.

Results:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	YoY%
Sales	9969.81	9616.68	10259.89	3.7	-2.8	40923.42	37788.62	8.3
Other Income	345.23	177.33	306.42	94.7	12.7	1044.08	854.54	22.2
Total Income	10315.04	9794.01	10566.31	5.3	-2.4	41967.5	38643.16	8.6
Total Expenditure	8529.06	8297.68	8843.91	2.8	-3.6	35138.7	32719.23	7.4
EBIDT	1785.98	1496.33	1722.4	19.4	3.7	6828.8	5923.93	15.3
Interest	16.93	7.64	16.55	121.6	2.3	70.65	76.37	-7.5
EBDT	1769.05	1488.69	1705.85	18.8	3.7	6758.15	5847.56	15.6
Depreciation	204.14	196.61	208.91	3.8	-2.3	824.59	757.36	8.9
EBT	1564.91	1292.08	1496.94	21.1	4.5	5933.56	5090.2	16.6
Tax	369.87	331.03	363.64	11.7	1.7	1448.02	1264.18	14.5
Deferred Tax	26.29	17.59	24.92	49.5	5.5	109.73	83.86	30.8
PAT	1168.75	943.46	1108.38	23.9	5.4	4375.81	3742.16	16.9

Source: Company website, EWL Research

 

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