Hero Motocorp Ltd sold about a quarter of motorcycles and scooters in the country, reporting huge gains in the fiscal year 2024-25, receiving higher exports and strong demand for new premium motorcycles.
The Delhi-based company’s operating revenue grew by 9% ₹The fiscal year ended March 31 was 407.56 million. Earnings from interest, taxes, depreciation and amortization or EBITDA increased by 40 basis points to 14.4% this year due to higher sales of premium motorcycles. Its net profit jumped to 16% in the year ₹46.1 billion.
“Our success over the year is supported by strong growth in the premium, scooter and EV sectors, which is driven by the launch of new products,” said Vikram S. Kasbekar, executive director and acting CEO of Hero Motocorp, in a statement.
The country’s largest two-wheeler manufacturer records ₹Revenues of 99.39 million from January to March, a year-on-year increase of 4%. Net profit increased by 6% ₹10.81 million.
Kasbekar added: “Export batches exceed industry trends and we have further expanded our premium retail footprint in India while entering new global markets.”
The company’s exports soared 44% in fiscal 25 to 289,668 units, becoming a key growth driver.
Hero Motocorp sold 5.9 million scooters and motorcycles in fiscal 25, up 5% from last year. However, this growth rate is much lower than the 18% increase in its previous partners, Honda Motorcycles and Scooter India Pvt Ltd, which helped it sell 5.3 million pairs of sales.
FY25 proved significant for the hero’s electric vehicle ambitions, as Vader scooter sales soared 175% to 48,674 units. As a result, their market share doubled from 1.8% to 4.2%, indicating catching up with TV Auto and EV competitors like Bajaj Auto.
The company’s focus on international markets will deepen as it attempts to enter the EU and UK markets in the second half of 2025.
“Looking forward, we remain optimistic about the outlook near maturity. Key macroeconomic indicators, including revised income tax tablets, cutbacks in repurchase tax rates, strengthening rural economies and favorable monsoon forecasts, are expected to support industry growth,” Vivek Anand, chief financial officer of Hero Motocorp, Vivek Anand.
Analysts are cautious
However, analysts are cautious about the company’s growth prospects.
“While the heroes maintain dominance in the 125-160cc space, the lack of appeal in premium ice bikes and evolving EV dynamics could lead to lower industry growth in FY26 than industry growth,” said Sanket Kelaskar, analytical agency at Ashika Group.
Kelaskar explained that despite the company’s efforts on electric vehicles, the heroes struggled to surpass the 200cc+ segment in amid fierce competition from Royal Enfield and Triumph.
Hero’s growth lags behind rival TV Automobile, with its full-year profits rising by more than 30% ₹Rs 27.1 crore while revenues rose 14% ₹363.09 million.
In FY25, the company launched five premium motorcycles from the Xtreme250R to the Xpulse 210. In the electric vehicle space, it will try to expand the tricycle space by gaining a majority stake in Euler Motors. The hero currently exists only in the two-wheel group.
In the last fiscal year, the two-wheeler maker saw senior exports, including CEO Niranjan Gupta and Chief Commercial Officer Ranjivjit Singh.
Shares of Hero Motocorp rose 1.8% ₹Tuesday was 4,055.50 on BSE, respectively. The Nifty Auto Index fell 1%.
