NEW DELHI: Hero MotoCorp expects growth momentum to continue in the remaining months of FY27 after reporting robust sales in the first quarter (Q1FY27). The country’s largest two-wheeler manufacturer expects the industry to clock double-digit growth in FY27 despite the high base of FY26.
“Total industry, ICE plus EV put together, grew about 14% in quarter one. We see similar trajectory for quarter two, looking at how July has started. H2 does have a base effect of a big jump that happened in sales in H2 last year because GST. Hence, from a base perspective, the year-on-year growth will be lower, but the way momentum is, we expect still a positive growth in H2,” said Chief Executive Officer Harshavardhan Chitale in the post-results conference call with analysts on Friday.
He added that growth in Q1 was broad-based, supported by improved affordability post GST rate cuts, as well as healthy urban and rural demand and continued acceleration in EV adoption. “It’s heartening to see that this strong demand momentum has continued in quarter two, and quarter two also saw a strong year-on-year retail growth in July of 28%. Both ICE and EV again registered similar kind of strong momentum as we saw in quarter one,” said Chitale.
Hero MotorCorp also said that it plans to launch its first set of electric motorcycles in 2027 and ramp up its electric vehicle production to 45,000 units per month. Hero’s share in the EV market has grown from 6.9% in Q1FY26 to 10.9% in Q1FY27. Under its VIDA brand, EV sales stood at 57.058 units in the reported quarter.
“When it comes to EVs, you would recollect that we had ended last year with a monthly capacity of 15,000 per month. As we stand today, in the first week of August, it has already increased to close to 30,000 per month, and you should see us go to close to 45,000 per month before end of this financial year. As we had committed, we are tripling our capacity of EVs within this financial year,” said Chitale.
Hero on Friday reported a 16.86% decline in consolidated profit after tax to Rs 1,417.93 crore in Q1FY27 as against Rs 1,705.65 crore profit in the corresponding period of the previous fiscal. The previous year PAT included a one-time gain of ₹722 crore on account of dilution of the company's share of investment in associates consequent to public issue and private placement.
Consolidated revenue from operations in the first quarter stood at Rs 13,126.35 crore as against Rs 9,727.75 crore in the year-ago period. During the quarter, the company sold 16.77 lakh motorcycles and scooters, registering a 23% year-on-year growth over the corresponding quarter of the previous year, Hero MotoCorp said.