Analysts consider the nation’s largest two-wheeler maker benefited from improved shopper sentiment, restocking by sellers forward of the festive season, and the constructive influence of the current GST cuts. Nonetheless, they’ll carefully look ahead to commentary on the demand outlook and the progress of Hero’s electrical automobile (EV) technique.
Kotak Equities
Kotak expects Hero MotoCorp’s income to rise 15% YoY in Q2FY26, pushed by an 11% YoY enhance in volumes amid robust channel filling earlier than the festive season and a 3–3.5% enhance in common promoting costs (ASPs) on account of a richer product combine and better export and scooter contribution.
“EBITDA margin is prone to enhance by 20 foundation factors YoY to 14.7%, reflecting higher working leverage and price management,” the brokerage mentioned. Kotak additionally expects a pick-up in retail momentum submit the festive season to maintain into H2FY26.
Nuvama
Nuvama forecasts quantity development of 11% YoY, supported by higher combine realisation and a decrease share of sub-110cc fashions. The brokerage mentioned EBITDA margins are prone to increase YoY on higher scale advantages.
“Key issues to be careful for would be the demand outlook for the agricultural phase and the timeline for Hero’s new 125cc bike launch, which might assist strengthen its product portfolio,” Nuvama mentioned.
YES Securities
YES Securities initiatives income development of 12.1% YoY and PAT development of 14.3% YoY, led by quantity development of 11.3% and regular realisations. The brokerage estimates complete gross sales of 1.69 million items throughout the quarter, translating into ASPs of round Rs 69,400 per unit.
It expects EBITDA margin growth of 10 bps YoY (and 20 bps QoQ) to 14.6%, aided by working leverage and higher product combine. 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 ship a powerful Q2 efficiency, with 11% YoY and 24% QoQ quantity development. The brokerage highlighted that Hero’s EV combine improved to 2.3% of complete volumes, up from 1.1% final 12 months, whereas its export combine rose to 7.7% from 4.2% YoY, reflecting early traction in new markets and electrical merchandise.
“Given wholesome volumes and steady enter prices, we anticipate margins to enhance 70 foundation factors YoY to fifteen.2%. On the again of wholesome quantity development and margin growth, PAT is anticipated to develop 20% YoY in Q2,” Motilal Oswal mentioned.
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Total outlook
Brokerages stay broadly constructive on Hero MotoCorp’s near-term prospects, citing steady uncooked materials costs, bettering festive momentum, and early indicators of rural restoration. The corporate’s entry into premium bikes and EVs, coupled with its deal with exports, is anticipated to assist quantity development past FY26.
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)
