Hero MotoCorp, India’s largest two-wheeler manufacturer, is expected to report modest revenue growth for the fourth quarter of FY25, driven by higher average selling prices (ASPs) and an increased share of premium models. Despite weak volume performance, the company’s profit after tax (PAT) is projected to rise by 8% year-on-year (YoY), supported by a favorable product mix.
Key Financial Expectations
- Revenue Growth: Estimated at 2–3% YoY, driven by premium motorcycles and 125cc variants.
- PAT Increase: Expected to rise 8% YoY, despite subdued demand in the two-wheeler segment.
- ASP Improvement: A 2–3% YoY increase in ASPs due to a richer product mix.
Market Trends & Challenges
Hero MotoCorp’s volume growth remained weak, with two-wheeler demand lagging expectations. However, the company’s premium and 125cc models have shown resilience, helping offset the decline in lower-cc motorcycles.
Analyst Insights
Brokerages expect EBITDA margins to contract due to higher marketing spends, including expenses related to the Auto Expo and new product launches. Analysts will closely monitor the demand outlook and the timeline for upcoming launches.
As Hero MotoCorp prepares to announce its Q4FY25 results, investors will be keenly watching for updates on future growth strategies and market recovery trends.
