Hero Motors Q1 FY27 Results: Consolidated Net Profit ₹9.57 Crore on Total Income of ₹322.64 Crore

Summary

Figures are in ₹ crore; YoY compares with Q1 FY26 and QoQ with Q4 FY26. Click Total income or Net profit to see the rows behind them.

Net profit more than doubled, from a small base: ₹9.57 crore against ₹3.88 crore, with a net margin of 2.97% against 1.47%. Profit before tax rose 141.2% to ₹15.59 crore from ₹6.46 crore while revenue from operations rose 24.9%, so profit grew far faster than sales. Tax took 38.6% of profit before tax, against 24.9% standalone: current tax of ₹7.72 crore less a deferred tax credit of ₹1.71 crore.

Finance costs (₹11.17 crore, +17.1%) and depreciation (₹12.51 crore, +14.7%) grew more slowly than revenue, and other income fell to ₹3.32 crore from ₹8.19 crore. Of the net profit, ₹10.20 crore belongs to the owners of the parent; minority holders had a loss of ₹0.63 crore.

Against Q4 FY26 total income was down 1.9% and net profit down 32.6% from ₹14.20 crore, with other income almost halved (₹3.32 crore from ₹6.23 crore). Treat the comparisons with care: these are the first results Hero Motors has prepared under the SEBI listing regulations, so the Q1 FY26 and Q4 FY26 figures were not reviewed by the auditors, and Q4 FY26 is the balancing figure between the audited full year and the unaudited nine months.

Figures are in ₹ crore; YoY compares with Q1 FY26 and QoQ with Q4 FY26. Click Total income or Net profit to see the rows behind them.

The listed company earns more than the group. Standalone net profit is ₹23.40 crore against ₹9.57 crore consolidated, on total income of ₹281.93 crore (+28.2%) with profit up 168.8%, and tax takes 24.9% of profit before tax against 38.6% for the group. The ₹13.83 crore gap is the subsidiaries: the six whose results other auditors reviewed made a combined net loss after tax of ₹11.78 crore on revenues of ₹58.24 crore in the quarter.

The interim dividend exceeded the quarter's group profit. The board declared ₹0.32 a share, ₹12.14 crore in total, on 1 May 2026 and it has been paid; that is about 127% of the quarter's consolidated net profit and about 52% of the standalone profit (derived).

Figures are in ₹ crore; the change is against Q1 FY26. Segment revenue is before inter-segment eliminations.

Powertrain Solutions carries the group. Its revenue rose 25.8% to ₹170.53 crore and its segment profit to ₹33.50 crore, 19.6% of segment revenue against 13.4% a year earlier. Alloy and Metallics grew faster, 29.7% to ₹165.91 crore, but is still loss-making at segment level, with a ₹2.55 crore loss against ₹3.66 crore. Unallocated items swung from income of ₹1.55 crore to a net expense of ₹4.19 crore, and ₹17.12 crore of inter-segment sales is eliminated.

After the quarter ended the company listed. The IPO was priced at ₹84 a share: a fresh issue of 7,14,28,571 shares aggregating ₹600 crore and an offer for sale of ₹400 crore (4,70,23,809 shares by OP Munjal Holdings and 5,95,238 by Hero Cycles Limited). The shares listed on NSE and BSE on 23 Sep 2026, and 2,09,71,941 compulsorily convertible preference shares were converted into equity shares. None of the ₹600 crore is in these results, against finance costs of ₹11.17 crore a quarter, and the filing does not say how it will be used.

The board also approved buying 8,039 shares of GBP 1.00 each in Hewland Engineering Limited, a UK subsidiary, from its existing shareholders William Hewland and Siobhan Hewland, for cash of up to GBP 0.60 million. That takes the company's stake from 51% to 90%, and Hewland stays a subsidiary. Hewland makes transmission and drivetrain components for performance automotive, motorsport, EV and aerospace customers; its turnover was ₹134.92 crore in FY26 (₹160.49 crore in FY25, ₹148.11 crore in FY24), about 11% of the group's FY26 revenue from operations (derived), with a loss after tax of ₹3.74 crore. The purchase is not a related party transaction, needs no regulatory approval and should take about six months. Deloitte Haskins & Sells LLP did not modify its conclusion on the consolidated results; for six subsidiaries it relied on other auditors.

Inference

Profit is rising fast but from a small base, and the group figure is held down by loss-making subsidiaries and an alloys segment that has not yet turned. The comparison periods were not reviewed by the auditors, so the year-on-year changes rest on less assurance than the current quarter.

For shareholders, the filing does not say how the ₹600 crore of fresh capital will be used or what the larger stake in a loss-making Hewland is expected to change in group earnings.

Reference: Original filing (PDF)