Hero MotoCorp Shares Rise Over 2% on Strong Q4, Rural Demand, and EV Ambitions

Market Performance

Hero MotoCorp shares climbed over 2% in early trade on May 15, reflecting investor confidence in the company’s growth trajectory for FY26. This uptick comes amid a positive outlook driven by robust rural demand and plans to strengthen its electric vehicle (EV) lineup.

Main News

India's largest two-wheeler manufacturer is aiming to outpace the industry's projected 6–7% growth in FY26. The company is optimistic due to:

• Recovery in the entry-level segment
• Renewed demand in rural areas
• Momentum in the 125cc motorcycle category

Hero MotoCorp sold 5.9 million units in FY25, up from 5.62 million in FY24, marking a 5% year-on-year increase.

In the March quarter alone, the company gained:

• 600 basis points in the entry-level segment
• 250 basis points in the 125cc segment

These gains underline the company’s strong presence in rural markets and growing appeal in premium categories.

Company Details

During its recent earnings call, Hero MotoCorp reaffirmed its strategy to expand its retail market share, especially in the entry and mid-level motorcycle segments.

Management attributed growth to:

• Product updates
• Operational efficiencies
• Higher traction during the recent marriage season

EV Segment: A Key Growth Driver

Hero MotoCorp is set to strengthen its position in the EV space with two new affordable Vida-brand electric scooters, expected to launch in July. The current Vida range includes:

• V2 Pro
• V2 Plus
• V2 Lite

Price Range: ₹74,000 to ₹1.15 lakh (ex-showroom)

EV Sales Target:

• FY25 sales: 58,503 units
• Future monthly target: 25,000–30,000 units

The company has also applied for PLI approval for the Vida Pro, with clearance anticipated by July.

Financial Performance

Revenue from Spare Parts

• Q4 FY25: ₹1,553 crore
• YoY Growth: 15%

Net Profits

• Q4 FY25: ₹1,081 crore
• Q4 FY24: ₹1,016 crore
• YoY Growth: 6%

Summary

Hero MotoCorp shares are on an upward trend, buoyed by strong quarterly performance, rising rural demand, and aggressive electric vehicle plans. With strategic market focus and new product launches in the pipeline, the company is well-positioned to surpass industry growth projections in FY26.