India’s top two-wheeler manufacturer is all set to report it’s earnings today. Hero MotoCorp is expected to post a steady set of numbers for the fourth quarter of FY25, with modest revenue growth and a year-on-year jump in net profit, despite pressure on operating margins. The company will declare its Q4 and full-year results on Monday, May 13.
Revenue likely to rise 2% YoY; higher realisation a key driver
As per Zee Business Research, Hero MotoCorp’s consolidated revenue for the March quarter is projected at Rs 9,720 crore, registering a 2 per cent rise over Rs 9,519 crore in the same period last year. The growth is expected to be led by higher realisation per unit, even as total volumes remained largely unchanged on a yearly basis.
The better mix of premium and mid-range products, along with incremental pricing actions, supported revenue growth in a seasonally weak quarter.
PAT may jump 9% despite flat EBITDA
Hero MotoCorp’s adjusted profit after tax (PAT) is estimated to come in at Rs 1,108 crore, up 9 per cent YoY from Rs 1,015 crore in Q4 FY24. The bottom-line improvement is likely to stem from cost optimisation efforts and lower input costs, partially offset by higher expenses on marketing and advertising.
EBITDA for the quarter is expected to remain flat at Rs 1,363 crore compared to Rs 1,359 crore last year. While operational performance has held firm, margin pressures may emerge due to spending on the Auto Expo and a flurry of product launches in the pipeline.
Margins under pressure amid rising spends
EBITDA margin is expected to contract slightly on a sequential basis, given the company’s elevated investments in brand campaigns and new models aimed at rejuvenating its portfolio. Analysts expect a sharper focus on the premium and electric segments in FY26.
Key monitorables for Q4 earnings
Commentary around demand trends in rural markets, timelines for upcoming launches including EV models and margin outlook for FY26 will be crucial. Investors will also track Hero’s export strategy and its progress in gaining share in the growing premium segment.
The stock has seen muted performance in the past few weeks, underperforming the Nifty Auto index.
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