The auto component maker reported consolidated revenue of ₹365 crore, while EBITDA increased 30.3% to ₹42.2 crore.
Highlights
- Consolidated net profit rose 65.1% to ₹18.2 crore.
- Revenue from operations increased 21.3% to ₹365 crore.
- EBITDA climbed 30.3% to ₹42.2 crore.
- EBITDA margin improved to 11.6% from 10.8%.
- Operating margin expanded by 80 basis points year-on-year.
Auto component manufacturer Hero Motors Ltd. reported a 65.1% year-on-year increase in consolidated net profit to ₹18.2 crore for the second quarter of financial year 2026–27, supported by higher revenue and an improvement in operating profitability.
The company had posted a net profit of ₹11 crore in the corresponding quarter of the previous financial year, according to an exchange filing cited by NDTV Profit.
Revenue from operations increased 21.3% to ₹365 crore, compared with ₹301 crore a year earlier. This represented an increase of ₹64 crore, while consolidated net profit rose by ₹7.2 crore over the same period.
Operating earnings outpace revenue growth
Earnings before interest, taxes, depreciation and amortisation, or EBITDA, increased 30.3% to ₹42.2 crore, against ₹32.4 crore in the corresponding quarter last year.
The ₹9.8 crore increase in EBITDA meant that operating earnings grew faster than revenue. Net profit growth was stronger than both revenue and EBITDA growth during the quarter.
The reported figures show an improvement across the company’s key financial measures. However, the supplied results summary did not specify the contribution of individual business segments or explain the factors behind the sharper increase in net profit.
Margin expands by 80 basis points
Hero Motors’ EBITDA margin improved to 11.6% from 10.8%, marking an expansion of 80 basis points, or 0.8 percentage points.
In simple terms, the company generated approximately ₹11.60 in EBITDA for every ₹100 of operating revenue, compared with ₹10.80 a year earlier.
The higher margin indicates that a larger share of revenue translated into operating earnings before interest, taxes, depreciation and amortisation. The available information does not establish whether the improvement came from changes in costs, product mix or other operating factors.
Quarterly performance at a glance
| Metric | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Net profit | ₹18.2 crore | ₹11 crore | +65.1% |
| Revenue | ₹365 crore | ₹301 crore | +21.3% |
| EBITDA | ₹42.2 crore | ₹32.4 crore | +30.3% |
| EBITDA margin | 11.6% | 10.8% | +80 bps |
Overall, the quarter’s results showed higher sales accompanied by stronger operating profitability. Revenue increased by roughly a fifth, while the improvement in EBITDA margin helped operating earnings rise at a faster pace.
The figures are consolidated and compare the second quarter of FY27 with the corresponding quarter of FY26.
