Hero MotoCorp Ltd

ESG Rating Details

• ESG Score of 70 assigned by Crisil ESG Ratings & Analytics Limited.
• Assessment conducted independently using publicly available data for FY2025-26.
• Company did not commission the ESG rating.
• Notification received on August 21, 2026.
• Issuer: Hero MotoCorp Ltd.

Appointment: Chief Strategy Officer

• Appointment of Mr. Srihari Mulgund as Chief Strategy Officer.
• Effective from 17 August 2026.
• Designated as Senior Management; joins Leadership Team.
• Brings 24+ years in engineering, product, and strategy; ex EY-Parthenon partner.
• Reason: to lead strategic initiatives and House of Strategy.
• Disclosure: No relationships with other directors disclosed.
• Impact on governance: No board changes; Senior Management designation noted.

Meeting Details

• Date of meeting: August 18, 2026
• Venue: Mumbai (physical)
• Type: Investor Conference (group)
• Organizer/Event: Motilal Oswal Global - 22nd Annual Investor Conference
• Purpose: Participation in investor conference

Financial Performance

• Q1 FY27 revenue INR 12,999 crore; EBITDA INR 1,727 crore; PAT INR 1,454 crore.
• Total volume up 23% YoY; ICE up 21%; EV up 151%.
• Revenue grew 36% YoY; mix benefit 8%.
• Gross margin contracted 300 bps QoQ due to approx 4.5% commodity inflation.
• EBITDA margin 13.3%, down 120 bps QoQ.
• ICE EBITDA margin 15.9%, down 90 bps QoQ.
• EV capacity up to 30k/month; target 45k by FY27 end.
• VIDA EV volume 57,000 in Q1; PLI benefit INR 48 crores.
• 60% EV portfolio PLI-certified; 100% PLI by December 2026.

Operating / Segment Update

• ICE volumes up 21% YoY; domestic +18%, global +63%.
• Scooter market share up 230 bps; ICE scooter share near 7%.
• EV wholesale +151% YoY; EV market share up >400 bps in 1 year.
• Global business market share +110 bps; parts & accessories +30% YoY.
• New VIDA products: VIDA VX2 long-range variant with twin removable battery.

Capex & Capacity Expansion

• EV capacity expanded from 15k to 30k per month; target 45k by FY27 end.
• Splendor capacity up by 2,000 per day.
• Destini capacity doubled; Xoom capacity up 50%.
• GPC 2.0 capex of INR 750 crores to boost parts capacity.

Outlook & Guidance

• Midterm EBITDA margin target: 14% to 16%.
• Q2: marginal input-cost inflation; offset by mix, LEAP savings, and cost actions.
• EV profitability: EBITDA loss declined to around INR 40,000 per unit.
• EV PLI accruals to cover 100% of EV portfolio by Dec 2026.

Q&A Highlights

• VIDA channel inventory near nil; 2-3 days; capacity ramp by ~2,500 per day.
• 5% blended price increase since Feb; July marginal ICE price rise; EV pricing higher.
• Exports grew >60% in Q1; opened Germany; VIDA launched in Nepal.
• Upcoming premium models Ubex and VXZ; launches after festive season.
• 4-pillar profitability plan; scale, LEAP cost savings, and price/mix actions.

Meeting Details

• Earnings call for quarter ended June 30, 2026; audio recording available on company's website.

Business Overview

• Core business: manufacturing and sale of motorcycles and scooters; VIDA EV ecosystem expansion.
• Vida expands globally, entering Nepal; strong share gains in ICE and EV scooters.
• Global expansion: Nepal entry marks VIDA's international push.
• Strategic focus on expanding VIDA portfolio into white spaces and price points.
• Capex and capacity expansions to meet rising demand.
• FY26 capacity: 8.63 million units.
• Capex guidance ₹1,500 Cr for FY27.

Key Operational Highlights

• Q1 FY27 total dispatches 1.677 million, up 23% YoY.
• Motorcycles dispatches 1.484 million, up 17% YoY.
• Scooters (ICE+EV) dispatches 193k, up 107% YoY.
• Vida: 62 towns Top-2 position.
• 53 towns >20% market share.
• Nepal entry marks VIDA's global debut.
• DIRT.E K3 launched; size-adaptive electric off-road for youth.
• 60% portfolio eligible for PLI in Q1 FY27; 100% by Dec 2026.
• Expanded VIDA portfolio to target white spaces; increased price point breadth.
• Global Parts Centre 2.0 to be commissioned by end-2027.
• FY27 CAPEX guidance ₹1,500 Cr.
• FY26 capacity: 8.63 million units.
• Expanding distribution and non-vehicle revenue via Genuine Parts.
• Strengthening Splendor portfolio and flex-fuel variants.

Financial Performance

• Total dispatches 1.677 million, +23% YoY.
• ICE+EV scooter dispatches up 107% to 193k.
• Splendor+ retail growth 15% in Q1 FY27.

Strategic Priorities & Outlook

• Scale EV leadership; VIDA VX2 success; differentiated EV ecosystem.
• Expand VIDA portfolio across white spaces and price points.
• Capex plan: ₹1,500 Cr for FY27 to support capacity expansion.
• Global expansion: Nepal entry and 62 towns Top-2 share; 53 towns >20%.
• GPC 2.0 capacity boost; commissioning by end-2027.
• Invest in capacity to meet rising demand across motorcycles, scooters, and parts.

AGM Details

• AGM held on 6 August 2026 at 11:30 IST via VC/OAVM.
• Record date for voting: 29 July 2026.
• Total shareholders on record: 8,92,539.

Resolutions and outcomes

• Resolution 1: Adoption of standalone and consolidated financial statements approved; 99.9775% assent.
• Resolution 2: Interim dividend ₹110 and final dividend ₹75 per share approved; 99.9999% assent.
• Resolution 3: Re-appointment of Suman Kant Munjal as Director; 97.4535% assent.
• Resolution 4: Ratification of remuneration of Cost Auditors for FY 2026-27; 99.9972% assent.
• Resolution 5: Re-appointment of Dr. Pawan Munjal as Whole-time Director; 96.8165% assent.
• Resolution 6: Approval of terms and remuneration for Dr. Pawan Munjal as WTD; 79.6176% assent.

Dividend details

• Interim dividend: ₹110 per equity share; Final dividend: ₹75 per equity share.

Director changes

• Suman Kant Munjal re-appointed; Dr. Pawan Munjal re-appointed as Whole-time Director; terms as specified.

Auditors

• Cost Auditors remuneration ratified for FY 2026-27.

Material related party transactions

• No material related party transactions disclosed or approved.

Q1 FY27 results

• Unaudited standalone and consolidated Q1 FY27 results approved.
• Standalone revenue Rs 12,999 crore; up 36% YoY.
• Standalone PAT Rs 1,454 crore; up 29%.
• Consolidated revenue Rs 13,126 crore; up 35% YoY.
• Consolidated PAT Rs 1,418 crore; prior year Rs 1,706 crore.
• Volume 16.77 lakh units; up 23% YoY.
• PAM revenue Rs 1,689 crore; up 30%.
• EBITDA Rs 1,727 crore; EBITDA margin 13.3%.
• Prior-year PAT included a one-time Rs 722 crore gain from dilution.

CSR entity formation

• Board approved setting up a Section 8 company for CSR initiatives.
• Proposed entity to be wholly owned subsidiary of HMCL.
• Initial subscription of Rs 1 crore by HMCL.
• Proposed name: Hero MotoCorp Foundation - A Santosh Munjal Legacy.
• Regulatory approvals under Companies Act Section 8 required.

Leadership update

• Mr. Sachin Agrawal appointed Chief Technology Officer, effective 21 May 2026.

Strategic and brand highlights

• VIDA growth 151% YoY in Q1 FY27.
• Global Business grew 63% YoY; Harley-Davidson up 105%.
• Harley-Davidson retail network expanded to 21 full-line dealerships.
• Flex-fuel variants of Splendor+ and HF Deluxe launched.
• XOOM brand campaign refreshed; Abhishek Sharma for Xtreme 125R.