Analysts believe the country’s largest two-wheeler maker benefited from improved consumer sentiment, restocking by dealers ahead of the festive season, and the positive impact of the recent GST cuts. However, they will closely watch for commentary on the demand outlook and the progress of Hero’s electric vehicle (EV) strategy.
Kotak Equities
Kotak expects Hero MotoCorp’s revenue to rise 15% YoY in Q2FY26, driven by an 11% YoY increase in volumes amid strong channel filling before the festive season and a 3–3.5% increase in average selling prices (ASPs) due to a richer product mix and higher export and scooter contribution.
“EBITDA margin is likely to increase by 20 basis points YoY to 14.7%, reflecting better operating leverage and cost control,” the brokerage said. Kotak also expects a pick-up in retail momentum post the festive season to sustain into H2FY26.
Nuvama
Nuvama forecasts volume growth of 11% YoY, supported by better mix realisation and a lower share of sub-110cc models. The brokerage said EBITDA margins are likely to expand YoY on better scale benefits.
“Key things to watch out for will be the demand outlook for the rural segment and the timeline for Hero’s new 125cc motorcycle launch, which could help strengthen its product portfolio,” Nuvama said.
YES Securities
YES Securities projects revenue growth of 12.1% YoY and PAT growth of 14.3% YoY, led by volume growth of 11.3% and steady realisations. The brokerage estimates total sales of 1.69 million units during the quarter, translating into ASPs of around Rs 69,400 per unit.
It expects EBITDA margin expansion of 10 bps YoY (and 20 bps QoQ) to 14.6%, aided by operating leverage and better product mix. The brokerage pegs adjusted PAT at Rs 1,380 crore, up 14.3% YoY and 22% sequentially.
Motilal Oswal
Motilal Oswal expects Hero MotoCorp to deliver a strong Q2 performance, with 11% YoY and 24% QoQ volume growth. The brokerage highlighted that Hero’s EV mix improved to 2.3% of total volumes, up from 1.1% last year, while its export mix rose to 7.7% from 4.2% YoY, reflecting early traction in new markets and electric products.
“Given healthy volumes and stable input costs, we expect margins to improve 70 basis points YoY to 15.2%. On the back of healthy volume growth and margin expansion, PAT is expected to grow 20% YoY in Q2,” Motilal Oswal said.
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Overall outlook
Brokerages remain broadly positive on Hero MotoCorp’s near-term prospects, citing stable raw material prices, improving festive momentum, and early signs of rural recovery. The company’s entry into premium motorcycles and EVs, coupled with its focus on exports, is expected to support volume growth beyond FY26.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)