Premiumisation, EV drive Hero MotoCorp’s revenue in FY25 despite declining market share

Hero MotoCorp, the country’s largest two-wheeler manufacturer, reported the highest-ever revenue from operations and profit after tax (PAT) for FY25, amounting to Rs. 40,756 crore and Rs. 4,610 crore, respectively, according to the company’s exchange filing.
 
The revenue growth was driven by premiumisation and the EV segment, says Vikram S Kasbekar, Executive Director and Acting CEO at Hero MotoCorp.
 
“Our success during the year was underpinned by robust growth across the premium, scooter, and EV segments, fuelled by several new product launches. Export volumes outpaced industry trends, and we further expanded our premium retail footprint across India while entering new global markets,” says Kasbekar.
 
For the January-March quarter, the company reported a 4% increase in revenue from operations to Rs 9,939 crore as against Rs 9,519 crore in the same period last year. The company’s net profit for the quarter stood at Rs 1,081 crore, up 6% from Rs 1,016 crore in the corresponding quarter of the previous year.
 
For FY25, the EBITDA margin stood at 14.4%, reflecting an improvement of 40 bps compared to the previous year, driven by a favourable product mix, enhanced cost efficiencies and commodity costs. 
 
“We are observing strong retail traction, especially in our new premium and scooter offerings. Continued consolidation in the core segment, growth in the 125cc category, and the upcoming EV launch position us well for sustained momentum,” says Kasbekar. 
 
The company reported a 200% year-on-year increase in EV sales during the year, per the company. As per Vahan data, the company sold 36,518 units of electric two-wheelers in FY25. Between the April to March period of FY25, the company sold 5,609,820 units.
 
Notably, the development comes at a time when the company is witnessing a decline in market share over the past year. Hero MotoCorp’s market share has declined from 30.79% in FY24 to 28.84% in FY25, as per FADA.
 
Despite this, Hero MotoCorp is optimistic for growth in the near-to-mid-term. “Looking ahead, we remain optimistic about the near-to-mid-term outlook; key macroeconomic indicators, including revised income tax slabs, repo rate cuts, a strengthening rural economy, and a favourable monsoon forecast, are expected to support industry growth,” says Vivek Anand, Chief Financial Officer at Hero MotoCorp.