Hero MotoCorp Sees Double-Digit Revenue Growth in FY25, FY26

Despite market share challenges, India's largest two-wheeler maker, Hero MotoCorp Ltd, projects double-digit revenue growth in the current financial year 2025 and anticipates a similar trajectory in the next financial year.

“This year, the guidance we have given is for double-digit revenue growth. Looking at our first nine months' performance and how this quarter has started, we believe it is going to be double-digit revenue growth next year as well,” the company’s management told investors on Friday.

For the first nine months of the current financial year, Hero MotoCorp posted a 10% year-on-year increase in its topline to Rs 30,818 crore. This growth was driven by a robust increase in volume as well as a favourable product mix. In the previous financial year 2024, the automaker posted Rs 37,456 crore, representing an 11% growth.

The management noted that rural demand saw a slight increase in the third quarter of the current financial year, with its contribution rising by nearly 3% during the festive season. The company anticipates this trend to continue into the next financial year, expecting to benefit from various government initiatives aimed at boosting rural sentiment.

According to SIAM data, two-wheeler sales in the domestic market in the first nine months of this financial year rose by around 14.5% year-on-year to 1.95 crore units, while exports improved by 22.6% to 39.77 lakh units.

However, Hero MotoCorp’s share in domestic market dispatches declined to 28.8% during the April-December period from 30.4% in the previous year. Data shared by the Federation of Automobile Dealers Associations also reflects market share pressure, with a decline to 29% in the calendar year 2024 from 31.3% in 2023.

“We are positive about the growth prospects of the two-wheeler industry. With the continuity of demand and recovery in the broader two-wheeler market, for us in both rural and urban areas, the ramp-up of our 125cc portfolio, new product launches, and strong investments in building power brands, we expect to grow ahead of the industry,” CFO Vivek Anand said.

Outgoing CEO Niranjan Gupta noted: “We are consistently delivering over Rs 10,000 crore in revenue quarterly… 95% of our portfolio has started recovering market share. Our retail shares are higher than our dispatch market share. With multiple launches across segments, the portfolio has been enhanced and is in much better shape for future growth.”

“We have started executing our strategic pillars in terms of growing the entry category. In the 125cc segment, we have gained remarkably well, from a 13% share in Q4 of the last fiscal year. We are now comfortably above 20%, and the journey will continue. In the premium business, our portfolio is stronger, and we have a framework to start scaling up. In the EV segment, we have expanded our portfolio below the Rs 1 lakh segment and are geographically expanding with more stores.”

Hero MotoCorp, which has a mid-single-digit market share in the electric vehicle segment, is intensifying its efforts to gain a larger share of the market. With the recent launch of Vida Z, the automaker expanded its Vida portfolio below the Rs 1 lakh category.

The company also plans to expand its operations to the UK and Europe with the Vida brand in the second half of 2025. Vida Z will be the first model that Hero MotoCorp will sell in the UK and Europe.

Hero MotoCorp sees significant potential in global business and electric mobility despite fluctuations in the global economy and considers it a key revenue driver for the future.

Unlike many of its traditional competitors, Hero MotoCorp's share of exports in its total revenue remains in the low single digits. The company has a presence in 48 countries, and exports accounted for 3.9% of its Rs 37,456 crore revenue in the financial year 2024.

In February, the automaker moved its electric vehicle and Emerging Mobility Business Unit (EMBU) into a fully independent unit to create more synergy as it looks to accelerate its focus on electric vehicle product development and innovation.

Meanwhile, Hero MotoCorp's CEO, Niranjan Gupta, and Chief Business Officer of India business, Ranjivjit Singh, are set to step down from the company on April 30. Swadesh Srivastava is currently the Chief Business Officer for EMBU.

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