Hero MotoCorp reports Rs 40,756cr revenue and Rs 4,610cr profit in FY25
Hero MotoCorp posts record FY25 profit and revenue, declares ₹165 total dividend. Explore how premium bikes, EVs, and global growth drove performance.
What powered Hero MotoCorp to its best-ever financial performance in FY25?
Hero MotoCorp Limited, the world’s largest two-wheeler manufacturer by volume, reported its highest-ever revenue and net profit for the full fiscal year ending March 31, 2025. The company posted standalone revenue from operations of ₹40,756 crore for FY25, reflecting a year-on-year growth of 9%. Net profit after tax (PAT) surged to ₹4,610 crore, marking a 16% increase over the previous year. This performance was underpinned by a robust product strategy across the commuter, premium, scooter, and electric vehicle (EV) segments, in addition to geographic expansion into global markets and continued focus on cost efficiency and product mix optimisation.
For the fourth quarter (Q4 FY25), Hero MotoCorp reported revenue from operations of ₹9,939 crore, up 4% from the same period last year, and PAT of ₹1,081 crore, registering a 6% growth over Q4 FY24.
The company also declared a final dividend of ₹65 per share (face value ₹2), bringing the total FY25 payout—including the previously declared interim dividend of ₹100 per share—to ₹165 per share. This translates to a dividend payout of 8,250%, reinforcing the company’s commitment to delivering strong shareholder returns.
How did Hero MotoCorp sustain growth across segments and geographies?
Hero MotoCorp’s growth story in FY25 is tied closely to its success in premiumisation, electric mobility, and international market penetration. In terms of volumes, the company sold 58.99 lakh two-wheelers across FY25, including 13.81 lakh units in Q4 FY25. While the core commuter segment continued to contribute significantly, much of the momentum was driven by premium motorcycles and scooters, aided by multiple new launches and refreshes.
In the premium category, Hero introduced the Xtreme 250R, Xpulse 210, and the 2024 edition of Xtreme 160R 2V. Additionally, the brand deepened its collaboration with Harley-Davidson to expand the X440 portfolio and co-develop new products. On the scooter side, the launch of Destini 125, Xoom 125, and Xoom 160 helped diversify offerings and appeal to broader demographics.
EV sales soared nearly 200% over FY24, led by the introduction of the VIDA V2 range, priced under ₹1 lakh to penetrate the mass market. The company also made a strategic investment of ₹510 crore in Euler Motors, signaling a deepening commitment to the EV ecosystem. Hero’s premium scooter and electric line-ups are now witnessing strong retail traction, according to the company’s top leadership.
Geographically, Hero MotoCorp registered 43% growth in global business revenue. FY25 saw the company inaugurating a new assembly facility in Nepal, entering the Philippines, announcing plans to enter the UK and European markets by H2 2025, and setting up a wholly-owned subsidiary in Brazil.
What role did cost management and product mix play in Hero’s FY25 margins?
Hero MotoCorp’s profitability growth in FY25 was bolstered by improved operating leverage, cost-saving initiatives, and a more profitable product mix. The company’s EBITDA for FY25 rose to ₹5,868 crore, up 12% year-on-year. Its full-year EBITDA margin stood at 14.4%, reflecting an improvement of 40 basis points from the previous fiscal. Q4 EBITDA came in at ₹1,416 crore, also showing a 4% uptick over Q4 FY24.
Profit before tax (PBT) for the year increased by 17% to ₹6,128 crore. The rise in margins was attributed by Hero’s finance leadership to a mix of new model introductions in higher-value segments, operational efficiencies, and commodity tailwinds.
Chief Financial Officer Vivek Anand said the company’s strategic execution and fiscal discipline enabled strong earnings expansion despite a volatile economic environment. He also highlighted that macroeconomic trends—including a positive rural demand outlook, repo rate cuts, revised tax slabs, and monsoon forecasts—would continue to support industry growth.
How is Hero MotoCorp positioning itself for the future?
Hero MotoCorp appears to be laying a strong foundation for future growth through sustained investment in brand, innovation, and sustainability. Among the notable achievements in FY25, the company earned recognition from TIME magazine as one of the “1000 Best Companies in the World” and received global design accolades for its Surge S32 electric three-wheeler.
The company’s ESG credentials were also strengthened during the year. Hero MotoCorp ranked No. 1 on the S&P Dow Jones Sustainability Index (DJSI) among Indian two-wheeler firms and fourth globally in the broader automotive segment. Further, the company received the prestigious British Safety Council’s Sword of Honour for its Gurugram plant and won the 11th CII National Award for environmental best practices.
On the CSR and brand engagement front, Hero ramped up its outreach with women’s skilling programs in partnership with the Automotive Skills Development Council, para-sports sponsorships, and youth road safety campaigns. Additionally, its sports marketing strategy gained international visibility through extended title sponsorship of the Hero World Challenge and its five-year partnership with the International Hockey Federation and Hockey India League.
What is the sentiment surrounding Hero MotoCorp stock post-FY25 earnings?
Hero MotoCorp’s consistent financial performance and aggressive dividend payout are likely to bolster investor sentiment, particularly amid a consolidating auto sector. The announcement of a total ₹165 per share dividend offers an effective yield that is attractive for long-term holders, especially when paired with continued margin resilience and volume growth in EVs and exports.
Despite broader market volatility and geopolitical headwinds such as the Pahalgam terror incident referenced by Executive Chairman Dr. Pawan Munjal, Hero MotoCorp’s forward-looking statements strike a tone of cautious optimism. The company’s commentary positions it well for sustained outperformance, particularly with anticipated EV model launches and rural demand tailwinds.
The stock has been consolidating over recent months but may see fresh institutional interest on the back of robust FY25 numbers. Analysts are expected to revise FY26 estimates upward in light of Hero’s improving margin trajectory and widening EV product reach. Buy-side institutions and FIIs may view the current levels as a value entry opportunity, especially given the improving cash flows and dividend yield profile.
What lies ahead for Hero MotoCorp in FY26?
With FY25 setting record benchmarks, Hero MotoCorp enters FY26 with a reinforced position as India’s market leader for the 24th consecutive year. The company is expected to maintain its leadership by doubling down on electric mobility, premiumisation, and overseas expansion. As it eyes entry into European and UK markets and further scales its domestic EV offerings, product innovation and cost efficiency will remain at the core of its strategy.
Upcoming launches in the 125cc and electric categories are expected to provide incremental volume, while international expansion into Brazil and Southeast Asia could serve as new growth engines. Investor focus will now shift to execution in the EV segment, monetisation of recent investments, and demand recovery in rural India—key levers that could shape Hero MotoCorp’s narrative in the upcoming quarters.
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