Hero MotoCorp Consolidated Net Profit Dips 17% To ₹1,418 Crore In Q1 FY27

Mumbai: Hero MotoCorp on Thursday reported a consolidated net profit of Rs 1,418 crore for the quarter ended June 30, 2026, a 17 percent decrease compared to Rs 1,706 crore in the same period last year. The profit in the previous year included a one-time gain from the dilution of its share in associates.

Revenue and Expenses

Consolidated revenue from operations for Q1 FY27 rose 35 percent to Rs 13,126.35 crore, up from Rs 9,727.75 crore in Q1 FY26. Total consolidated income for the quarter was Rs 13,586.09 crore, an increase from Rs 10,037.69 crore in the corresponding period last year.

Total consolidated expenses for the quarter increased to Rs 11,621.48 crore, compared to Rs 8,541.12 crore in Q1 FY26. This includes the cost of raw materials consumed, which stood at Rs 9,314.79 crore.

Earnings Per Share

Basic consolidated earnings per share for Q1 FY27 was Rs 70.59, down from Rs 85.26 in Q1 FY26. Diluted consolidated earnings per share also decreased to Rs 70.53 from Rs 85.17.

Associate Performance

The group reported a share in net loss from associates of Rs 43.89 crore in Q1 FY27, compared to a profit of Rs 629.44 crore in Q1 FY26. This contributed to the decline in overall profitability.

Dividend and Share Allotment

On May 5, 2026, the Board approved a final dividend of Rs 75 per equity share for FY26, bringing the total dividend for the year to Rs 185 per equity share. During Q1 FY27, 3,161 equity shares with a face value of Rs 2 each were issued under the Employee Incentive Scheme - 2014.

New CSR Initiative

Hero MotoCorp plans to incorporate a new Section 8 company, "Hero MotoCorp Foundation - A Santosh Munjal Legacy," for corporate social responsibility initiatives. The company will infuse an initial subscription money of Rs 1 crore, making it a wholly-owned subsidiary.

Regulatory Updates

The Ministry of Environment, Forest and Climate Change issued new End-of-Life Vehicles (ELV) Rules, 2025, effective April 1, 2025, imposing Extended Producer Responsibility (EPR) obligations. However, the pricing and measurement framework for financial obligations are not yet available.

The group also noted the Battery Waste Management Rules, 2022, issued on February 24, 2025. Sufficient guidance on waste collection mechanisms and associated costs is not yet available, making it difficult to reliably estimate financial implications.

Labour Codes Impact

In the year ended March 31, 2026, the company made an additional provision of Rs 119 crore due to the notification of four Labour codes by the Government of India. This was presented as an exceptional item.

Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.