Hero Motocorp (HMCL IN) – Q2FY26 Result Update – Hits accelerator on EVs, exports & entry segment – Accumulate
Published on 18 Nov 2025
HMCL reported its highest-ever quarterly standalone revenue and PAT in Q2FY26, modestly beating street estimates on most P&L line items. It is seeing sustained retail momentum even after the festivities, and with the marriage season on, HMCL expects Scooters to grow strongly and 100cc Bikes to bounce back with aspirational and replacement demand in H2FY26. HMCL is stepping up promotional campaigns and capacities to meet the rise in demand. We tweak volume, realization and margin estimates translating to revenue/EBITDA/PAT CAGR of 9.5%/10.5%/9.9% over FY25-28E and retain ‘Accumulate’ rating with TP of Rs6,190 (previous Rs6,049). We value the core business at 20x P/E Sep’27E and Rs66 for TVS Credit Ltd.
