Hero MotoCorp posts highest-ever quarterly income as GST cuts spur demand – Company Technique & Outlook

Hero MotoCorp, India’s largest two-wheeler maker, on Thursday mentioned its revenue rose 15% year-on-year to ₹1,275 crore within the third quarter of economic yr 2026 (FY26), whereas income climbed 21% to ₹12,784 crore.

The document quarterly income was pushed by a 16% rise in gross sales to 1.69 million models, because the late-September GST cuts got here into full impact throughout October–December.

“Conducive macroeconomic elements and beneficial GST 2.0 tailwind helped in revival of rural demand, which additional drove client traction for bikes, and development for the economic system,” Vivek Anand, chief monetary officer at Hero MotoCorp, mentioned in a press release on the quarterly outcomes.

Excluding a one-time impression of ₹119 crore from the brand new labour codes, the New Delhi-based firm posted a web revenue of ₹1,439 crore, its highest-ever for 1 / 4.

TVS, Bajaj Auto additionally clock all-time highs

Hero’s numbers are according to TVS and Bajaj, which recorded their very own highest-ever quarterly income and earnings through the October-December interval. Hosur-based TVS noticed its consolidated web revenue soar 46% year-on-year to a document ₹891 crore through the October to December quarter, whereas Pune-based Bajaj Auto posted a 25% enhance in consolidated web revenue to ₹2,749 crore.

TVS’ income grew 33% year-on-year to ₹14,745 crore whereas Bajaj Auto’s income rose 23% to ₹16,640 crore.

Shares of Hero, TVS and Bajaj Auto have risen 6%, 7% and 12%, respectively, for the reason that begin of the festive season in October, outperforming the Nifty Auto index, which is up 3% over the identical interval.

Exports, demand momentum raise outlook

Investor bullishness additionally acknowledges the truth that all of the three corporations have seen a powerful development in exports within the October-December quarter. Whereas Hero noticed a 41% rise in volumes, TVS noticed a 35% soar in exports, whereas Bajaj Auto noticed a 14% development.

All of the three two-wheeler makers have offered a bullish outlook, betting that the demand momentum will proceed within the coming months.

Analysts have famous that the business tendencies for January recommend that momentum in gross sales has solely strengthened prior to now few months.

“Retail tendencies remained sturdy throughout most segments, suggesting sustained momentum after the festive season. The export section continued to witness sturdy traction throughout the CV, tractor and 2W segments. Most OEMs (unique gear producers) reported numbers forward of our expectations,” analysts at Kotak Institutional Equities wrote in a 2 February observe.

Business development past festivals

Based on information from the Society of Indian Vehicle Producers (Siam), two-wheeler gross sales rose 17% to five.7 million models throughout October-December, the highest-ever for the quarter, as festivals and GST cuts lifted demand.

“We have now grown forward of the business, and we’re very assured that this momentum will proceed each on the business aspect, and we are going to prone to do higher than the business development in This fall,” Okay.N. Radhakrishnan, director and chief govt at TVS Motor, had mentioned through the earnings name on 28 January.

Becoming a member of the bullish commentary on demand, Bajaj Auto’s govt director Rakesh Sharma mentioned on 30 January that the standard of development has improved, as clients sought to improve their merchandise through the quarter.

“The motorbike business moved from a good destructive zone into double-digit constructive development, additionally it is the standard of development, with the higher segments outperforming the decrease segments and which performs very properly for us as a result of our portfolio pivots on the proposition of attempting to steer the purchasers to improve,” Sharma advised reporters.

Sharma added that the momentum within the business will proceed so long as inflation charges stay underneath management.