Hero MotoCorp shifts focus to EVs, premium bikes and global markets after record FY26
At its AGM, Hero MotoCorp reported FY26 revenue of ₹46,830 crore and PAT of ₹5,268 crore, while outlining a growth agenda centred on VIDA electric vehicles, premium motorcycles, connected technology and international expansion.
What happened
Hero MotoCorp is prioritising EVs, premium motorcycles, connected technology and international expansion. At its AGM, the company reported record FY26 earnings,
Key facts
- FY26 revenue from operations: ₹46,830 crore
- FY26 EBITDA: ₹6,871 crore
- FY26 profit after tax: ₹5,268 crore
- Nearly 65 lakh motorcycles and scooters sold
- Return on capital employed: over 31%
- VIDA retail growth: 190% year-on-year
- International operations growth: 40% in FY26
- Final dividend: ₹75 per share
- Pawan Munjal reappointed for five years
Why this matters
Hero’s shift toward EVs, connected technology and international markets makes partnerships or acquisitions in battery ecosystems, software, charging, premium distribution and overseas market access strategically relevant.
What to watch
- Quarterly VIDA registrations, market share, dealer throughput and evidence that growth persists after incentives.
- EV gross-margin commentary, warranty provisions, battery-cost trends and the pace of operating-loss reduction.
- Premium motorcycle launch cadence, booking levels, average selling prices and segment share versus Royal Enfield, Bajaj, TVS and Honda.
- International revenue growth by region, export realization, new assembly announcements and foreign-exchange impact.
- Dealer-network expansion, inventory days and retail-versus-wholesale sales divergence.
- Policy changes affecting EV subsidies, battery localization, charging infrastructure and import tariffs.
- Core 100cc-125cc motorcycle demand, rural financing availability and any share loss that could weaken funding for the new strategy.
- Accelerate VIDA dealership additions, test-ride coverage, battery warranty offerings and retail financing partnerships.
- Launch premium motorcycles and upgraded commuter models with connected features to defend share and raise realization per vehicle.
- Increase localized international assembly, distribution alliances and country-specific product configurations.
- Expand software, telematics, roadside assistance and accessory bundles to create recurring revenue and increase customer retention.
- Use targeted incentives rather than broad discounting to preserve EV residual values and dealer economics.
- Deploy capital toward battery sourcing, charging partnerships and selective technology investments while protecting the core business cash flow.