Hero MotoCorp

“Backed by these measures, we expect margins in quarter 3 to remain stable.”

“And therefore, we expect to achieve our target range in the next few quarters as commodity cycle stabilizes and raw material inflation returns to normalized levels.”

“In fact, our expectation is to double-digit growth back in Q3 and Q4.”

“We are advancing the Phase II expansion of our Global Parts Center 2.0 at Tirupati and expect the GPC 2.0 to be fully operational by end of next calendar year.”

“In fact, as we had shared earlier, we are also setting up a manufacturing facility in Brazil.”

“Going forward, our journey of investment behind growth will continue both in terms of capacity expansion and brand building to support our premium, scooter, EV and global business portfolio.”

“On Xoom specifically, we are further planning to expand capacity because we've also taken that model now in our overseas market and it's seeing great traction in the markets outside India as well.”

“We've also expanded the dedicated premium assembly line at our Neemrana facility.”

“Within that, Xoom 160, which is the Maxi scooter, let's say, the SUV of the scooter portfolio, so to speak, actually is doing exceptionally well. There, our channel stock has been hovering around single days. So we are, again, further defining and boosting our capacity there.”

“Retail in our VIDA grew by 105% year-on-year and now we've gained 170 basis point market share in H1 of FY27.”

“right now, October month-to-date, actually, our market share is hovering to close to 13.5%, 14%.”

“However, we are enthused by the fact our retails have grown by 19% during this period.”

“Our Parts business recorded a revenue growth of 27% year-on-year during the quarter.”

“So we have Colombia specifically close to 25% of our exports business, so very high exposure, and so is in Bangladesh.”

“Our dealer inventory continues to be low we are working with a dealer stock of just about 1 day, which shows that actually, we are still capacity constrained”

“With the festive season underway, we do see demand fundamentals continue to hold up, and we expect the industry as a whole to deliver mid to high single-digit growth during the festival period”

“As we see today and our planning for the H2, we are looking at still mid to high single digit in H2. Even ICE will be in growth with low single digit and EV will then take it to high single digits for the industry.”

“Q2 was another strong quarter for the 2-wheeler industry, with VAHAN retail growing by over 27%.”

“Hence, looking into this broader period gives us a good indication, and we've seen a 24% growth on this broader definition of festival. And there, we have not seen any share erosion.”

“This outperformance reflects portfolio premiumization led by an increasing share of ICE and EV scooters and premium variants contributing a 5% positive mix impact, equally supported by calibrated pricing.”

“At an aggregate level, while gross margin compressed by 30 basis points quarter-on-quarter, strict overhead control and operating leverage drove a 10 basis point quarter-on-quarter expansion in EBITDA margins to 13.4%.”

“and I'm happy to report that our VIDA business turned gross margin positive in the quarter. This was achieved ahead of our earlier guidance.”

“That's almost INR168 crores in quarter 2, which is down from INR232 crores in quarter 1.”

“This led to INR70 crores optimization of spends over the previous quarter.”

“Moving on to cash flow from operations in the quarter stood at INR2,159 crores, nearby doubling over the prior comparable period, driven by optimization of working capital.”

“Under the new organizational setup, we've recently launched 2 key product refreshes in October, Xtreme 160R and Xtreme 250R, and both of these motorcycles are the fastest in their respective segments”

“Earlier this fiscal, we had launched new variants of our VIDA, the VX2 Go 3.1 kilowatt and VX2 Plus 4.4 kilowatt and both of these products are bringing new set of customers in our dealerships.”

“With respect to Ather right now on the product front, we have not explored because as we had explained last time, market is still in a rapid expansion mode”

“From the date we launched or started shipping it being a little over 2 months, and we have done close to 15,000 dispatches of flex-fuel vehicles.”

“We have just launched a new variant with ABS that has been very well accepted across markets. Xtreme, there are new variants as well that we are just about to start, hopefully should be in line for Diwali”

“As you all know, we carved out a premium business unit in quarter 2, and we announced a new Chief Business Officer for this business unit”

“Thank you, Amit, and it's an absolute pleasure to be hosting my first earnings call for Hero.”

“Results for the quarter include INR397 crores onetime gain from the equity consolidation of an associate company following its capital raise via a QIP and private placement.”

“Looking ahead to quarter 3 financial year '27, due to extended West Asia conflict and sustained commodity price inflation, we expect input cost inflation pressure to persist.”

“We have a very high exposure to one of the Latin American country, which unfortunately faced a devastating earthquake this quarter. And we did have issues in dispatches and custom clearance in that market.”

“We also saw a demand slowdown in Bangladesh with sharp increase in fuel price due to the Gulf War that's ongoing.”

“We ended H1 FY27 with a strong revenue growth of 28% and profit after tax growth of 16%”

“Our headline number for quarter 2 reflects strong top line performance with revenue from operations at INR14,687 crores, up 21% year-on-year.”

“EBITDA grew 8% year-on-year to INR1,968 crores, while profit after tax stood at INR1,456 crores, up 5% year-on-year.”

“Total wholesale volume expanded by 10.5% year-on-year, driven by an 8.4% growth in our ICE business and a robust 98% growth in EV business.”

“Revenue for the quarter increased by 23% year-on-year to INR14,971 crores, and PAT grew by 41% year-on-year to INR1,861 crores.”