Hero MotoCorp Q1 FY27: Volume Growth & Premium Mix Drive Strong Performance

$HEROMOTOCO reported a 35.7% YoY increase in revenue for Q1 FY27. This growth was fueled by a 22.7% rise in total sales volume alongside a 10.6% gain in realisations per unit, reflecting steady demand across its portfolio. Commodity Costs Pressure Margins: EBITDA margins contracted by 114 basis points YoY due to an approximately 4.7% rise in input costs, driven by higher freight rates, elevated oil prices, metal costs, and foreign exchange fluctuations. These cost pressures were partially offset by stringent expense management and internal cost-saving initiatives. Market Share Gains in Motorcycles & Scooters: Core 100cc motorcycle volumes grew 11.5% YoY, pushing market share to 85.8%. The 125cc premium-commuter segment performed exceptionally well with a 45.4% YoY volume jump, while ICE scooter volumes leaped 84% YoY, lifting its domestic scooter market share to 6.9%. Rapid Expansion in EVs: Wholesale volumes for the VIDA electric two-wheeler range surged 151% YoY to roughly 57,000 units, increasing EV market share to 10.9%. Per-unit EBITDA losses in the EV segment narrowed to around Rs 40,000, supported by improved operating leverage. Strong Export Momentum: Overseas shipments rose 63% YoY to approximately 105,000 units, expanding export market share to 6.8%. Growth was supported by entry into new international markets such as Germany, the launch of VIDA in Nepal, and broader expansion across Latin America, Africa, and South Asia. Capex and Capacity Build-Up: The company planned a capex of around Rs 1,500 crore for FY27 to scale manufacturing capacity for EVs, scooters, and motorcycles. Additionally, a Rs 750 crore investment in a second global parts center in Tirupati will double parts-handling capacity upon its late 2027 completion.