Hero Motors shares rise after Q1 profit more than doubles

Hero Motors shares rose over 6% despite a muted broader market on Oct. 14, as the company reported strong quarterly results

Hero Motors shares rose over 6% despite a muted broader market on Oct. 14, as the company reported strong quarterly results

Shares of recently listed Hero Motors jumped as much as 8% to their day's high of Rs 168 on the BSE on Wednesday after the company reported a more than 115% year-on-year (YoY) increase in consolidated net profit to Rs 10.2 crore for the July-September quarter of FY27, compared with Rs 4.74 crore in the year-ago period.Sequentially, however, net profit declined more than 31% from Rs 14.8 crore in the April-June quarter of FY27. Revenue from operations rose around 25% YoY to Rs 319 crore in the quarter under review, compared with Rs 256 crore in the corresponding quarter of FY26.Hero Motors’ total income increased over 22% YoY to Rs 322.64 crore in Q2 FY27, from Rs 263.94 crore reported in the same quarter of FY26. Total expenses meanwhile increased over 19% YoY to Rs 307.06 crore during the quarter under review.Also read | Hero Motors shares rally after lackluster debut. Should you buy, sell or hold?Along with the Q2 results, Hero Motors announced that it will acquire another 39% stake in subsidiary Hewland Engineering, taking its stake to 90%. The UK-based subsidiary designs and manufactures transmission and drivetrain components for performance automotive, motorsport, EV and aerospace industries.Hero Motors share priceHero Motors shares made a muted debut on the stock market late in September, listing at Rs 82 apiece on NSE. This marked more than 2% discount over the IPO price of Rs 84 apiece. After the muted market debut, the stock skyrocketed more than 118% in less than two weeks to hit a 52-week high of Rs 178.84 apiece on October 5.This came after Hero Motors' Rs 1,000 crore IPO saw strong investor interest during its three days of public bidding, being subscribed nearly 7 times its offer size. The non-institutional investor (NII) portion was subscribed 9.86 times, while that of retail investors was booked over 8 times. The portion kept for qualified institutional buyers (QIBs) meanwhile was booked 1.5 times.The initial public offering of the company comprised a fresh issue of 7.14 crore shares worth Rs 600 crore and an offer for sale (OFS) of 4.76 crore shares worth Rs 400 crore by existing shareholders. The IPO was priced in the range of Rs 79 to Rs 84 per share, with a minimum lot size of 178 shares.The shares have fallen around 13% from the record high level to close at Rs 155.19 apiece on Tuesday. The company’s market capitalisation stood at around Rs 7,049 crore.Also read | ICICI Life Q2 net profit rises 25% on better product mixDisclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

Mumbai: Hero Motors Limited reported a 147 percent year-on-year rise in consolidated net profit to Rs 9.57 crore for the quarter ended June 30, 2026 (Q1 FY27), compared with Rs 3.88 crore in the corresponding quarter of the previous financial year.Revenue from operations increased 25 per cent to Rs 319.32 crore from Rs 255.74 crore in Q1 FY26, according to the company's unaudited financial results approved by its board on October 13, 2026.Revenue And Profit PerformanceThe company's consolidated total income rose to Rs 322.64 crore from Rs 263.94 crore a year earlier, while total expenses increased to Rs 307.06 crore from Rs 257.47 crore.Profit before tax surged 141 per cent to Rs 15.59 crore against Rs 6.46 crore in the year-ago quarter. Total tax expenses stood at Rs 6.02 crore, compared with Rs 2.59 crore.Basic earnings per share increased to ₹0.27 from ₹0.13.Sequential PerformanceOn a quarter-on-quarter basis, consolidated net profit declined 32.6 per cent from Rs 14.20 crore in the March 2026 quarter.Revenue from operations slipped 1 per cent from Rs 322.53 crore, while profit before tax fell 27.3 per cent from Rs 21.44 crore.Segment PerformanceThe Powertrain Solutions segment reported revenue of ₹170.53 crore, compared with ₹135.54 crore a year earlier. Its segment result increased to ₹33.50 crore from ₹18.11 crore. Hero Motors Starts Its Market Journey On A Quiet Note, Stock Rebounds Later In The SessionThe Alloy and Metallics segment recorded revenue of ₹165.91 crore against ₹127.89 crore. Its segment loss narrowed to ₹2.55 crore from ₹3.66 crore.Segment revenue figures include inter-segment transactions before elimination.Board Approves UK Subsidiary Stake IncreaseSeparately, the board approved the proposed acquisition of an additional 39 per cent stake in UK-based Hewland Engineering Limited for £0.60 million, which would increase Hero Motors' ownership from 51 per cent to 90 per cent.Hero Motors completed its initial public offering after the June quarter and listed on the BSE and NSE on September 23, 2026.Auditor's ReviewDeloitte Haskins & Sells LLP drew attention to financial information of certain overseas subsidiaries converted to Ind AS by management. The auditor's review conclusion was not modified in respect of this matter.Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.

Hero Motors Ltd reported a strong improvement in its June-quarter performance, with net profit more than doubling year-on-year to Rs 10.2 crore in Q1FY27.