Hero MotoCorp reports a trivial Q1 stomach growth despite low sales, beating street estimates

Despite the low sales in the first quarter ended June 30, 2025 on Wednesday, the country’s largest two-wheeler maker MotoCorp defeated the street estimate to report a modest growth in net profit for Rs 1125.70 crore.

The company made a net profit of Rs 1122.63 crore in the relevant period of the last financial year.

Brokerage firm Motilal Oswal expected that the company would decrease net profit 7% in the first quarter ended at weak volumes. Motilal Oswal also expected to report a decrease of high EV mixture and weak snow (internal combustion engine), with Hero MotoCorp 60 bps margin to be 13.8%.

The income of the period under review is Rs. 9578.86 crore, which is a drop of 5.6% from Rs 10143.73 crore in Q1FY25. The earnings before interest, tax, depreciation and or or oral (EBITDA) were Rs 1382 crore in the last quarter. EBITDA margin remained flat at 14.4%.

The company sold 13.67 lakh two-wheelers in the last quarter, down 10.9% over the 15.35 lakh units sold in the year ago.

Vivek Anand, Chief Financial Officer of Hero MotoCorp, said, “Our profitability and margins remain elastic, supported by the strong demand for our entry and deluxe motorcycles and 125cc scooter segment. Reflects the power of the brand.

“With a convenient customer’s spirit, the next festive season and a strong pipeline of the new product launch, we are confident of sustaining and driving growth in the coming quarters,” Anand added.

Hero MotoCorp shares closed at Rs 4,474.50, down 1.49% on BSE. The benchmark index fell 0.21% to 80,543.99. The results were announced after the market hours.