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• Revenue: INR40,756 crores, up 9% year-on-year.

• EBITDA: INR5,868 crores, up 12% year-on-year.

• EBITDA Margin: 14.2% for the quarter; 14.4% for the full year, improved by 40 basis points.

• ICE EBITDA Margin: 16.2%, improved by 90 basis points.

• Profit After Tax (PAT): INR4,610 crores, a growth of 16% year-on-year.

• Dividend: Total dividend for the year INR165 per equity share, representing a payout of 8,250%.

• Vehicle Sales: 5.9 million vehicles sold in the financial year '24/'25.

• Market Share: Highest ever quarterly market share in global business; dispatches grew by 43% year-on-year.

• Investment in EV Business: INR630 crores for the year.

• Stake Acquisition: Acquired 34.1% stake in Euler Motors for INR510 crores.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:500182.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hero MotoCorp Ltd (BOM:500182) achieved the highest ever revenue from operations and PAT for the full year '25, with revenue up 9% and PAT up 16%.

• The company declared a final dividend of INR65 per equity share, bringing the total dividend for the financial year '24/'25 to INR165 per equity share, representing a payout of 8,250%.

• Hero MotoCorp Ltd (BOM:500182) maintained market leadership with sales of 5.9 million vehicles and gained market share in the 125cc segment, driven by the success of Xtreme 125R.

• The company's global business reported its highest ever quarterly market share, with dispatches growing by 43% year-on-year.

• Hero MotoCorp Ltd (BOM:500182) acquired a 34.1% stake in Euler Motors, marking its entry into the fast-growing EV three-wheeler category.

Negative Points

• The company implemented a temporary production halt at several facilities to align the supply chain and conduct maintenance, which could have impacted production schedules.

• There were concerns raised about vehicle quality post-BS VI transition, with feedback indicating some degradation in quality and increased warranty claims.

• Despite strong performance in some segments, Hero MotoCorp Ltd (BOM:500182) underperformed the industry in retail growth last year, growing by only 1% compared to the industry's 8%.

• The EV business is currently operating at a negative EBITDA margin of 95%, although it has improved from the previous year's negative 155%.

• There is uncertainty regarding the timeline for the EV business to reach breakeven, with expectations set for a couple of years away.

Q & A Highlights

Q: How does Hero MotoCorp plan to capitalize on its strong base and gain market share in the 125cc segment over the next 5 to 10 years? A: Vivek Anand, Chief Financial Officer, explained that Hero MotoCorp has gained 250 basis points in market share in the 125cc category this year. The Xtreme 125R has been successful, selling close to 300,000 units. The company plans to launch exciting new products in this category to strengthen its market position further.