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Hero MotoCorp, the country’s largest two-wheeler maker, reported better-than-expected earnings for the March quarter on May 13, driven by improved product mix and realisation gains. The company’s consolidated net profit rose 6.4 per cent YoY to Rs 1,081 crore in Q4 FY25, ahead of Zee Business estimates of Rs 1,016 crore. Revenue from operations also came in strong at Rs 9,939 crore, beating the projected Rs 9,720 crore.

Operating performance remained stable as EBITDA for the quarter stood at Rs 1,416 crore, rising 4.2 per cent YoY from Rs 1,359 crore. This was marginally ahead of expectations pegged at Rs 1,363 crore. However, as anticipated, the EBITDA margin showed slight sequential pressure due to higher brand spends and promotional activity around new launches.

Hero sold 13.81 lakh two-wheelers during Q4 FY25, slightly down from 13.92 lakh units last year. While volumes were flat, realisation-led growth supported top-line performance, consistent with the forecast from Zee Business Research that highlighted premiumisation as a key lever.

For the full year FY25, Hero MotoCorp clocked its highest-ever revenue at Rs 40,756 crore and record PAT of Rs 4,610 crore. The company announced a final dividend of Rs 65 per share. Including the interim dividend of Rs 100/share, the total FY25 payout stands at Rs 165 per share — a whopping 8,250 per cent dividend.

Despite the upbeat numbers, Hero MotoCorp stock has underperformed the Nifty Auto index in recent weeks. With rising input costs, aggressive EV and premium launches planned for FY26, and a rural revival on the horizon, all eyes will be on management’s commentary in the upcoming AGM and investor meets.

Rural demand and monsoon-linked sentiment

Premiumisation and EV strategy

Margin trajectory amid high marketing outlay

Export market expansion

Hero MotoCorp has delivered a solid Q4 and record FY25 performance, comfortably beating Zee Business estimates. With a generous dividend and encouraging commentary, the stock may see renewed investor interest—especially as rural demand and EV push start to play out.

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