Hero Motocorp Q4 results: Estimated with PAT of Rs 1,081 crore; Total dividend for fiscal 25 is Rs 165 per share
Hero Motocorp, the country’s largest two-wheeler manufacturer, reported that in the March quarter earnings on May 13, this was driven by improved product portfolio and achieving growth. The company's consolidated net profit rose 6.4% to Rs 1081 crore in fiscal 4, compared with the ZEE business estimated at Rs 10.16 crore. The revenue from operations also reached Rs 9939 crore, beating the estimated Rs 972 crore.
EBITDA online, but profit margins show elasticity when spending rises
EBITDA's operating performance remained stable in the quarter at Rs 14.16 crore, up 4.2% from Rs 135.9 crore. This is before the expected limit is Rs 1363 crore. But, as expected, EBITDA's profit margins show slight sequential pressure due to higher brand spending and new promotions around the launch.
Batch growth soft, but achieves saving a day
Hero sold 13.81 million two-wheelers in the fourth quarter of FY25, slightly lower than last year's 1.392 million units. Despite the flat number, achievement-led growth supports top performance, consistent with the forecasts from Zee Business Research that highlight premiums as key leverages.
FY25 revenue, record profit high; dividend Bonanza announced
For the full year of fiscal 25, Hero Motocorp recorded its highest income revenues of Rs 40,756 crore and recorded Rs 46.1 crore records. The company announced a final dividend of Rs 65 per share. Includes an interim dividend of Rs 100 per share, with a total revenue of Rs 165 per share of Rs 165 per share, with a dividend of up to 8,250%.
Zee Business Estimation and Actual: Heroes Beat in Key Measures
| Metric system | Zee estimates | Actual (Q4FY25) | beat? |
|---|---|---|---|
| income | Rs 9,720 | 9,939 rupees Cr | ✅ |
| Net Profit (PAT) | Rs 1,016 | 1,081 rupees Cr | ✅ |
| EBITDA | 1,363 rupees Cr | Rs 1,416 | ✅ |
| Two-wheeler sales | 13.8 million | 13.81 million | ✅ |
Despite the high income, what is the stock response? What's next?
Despite the rhythmic figures, Hero Motocorp shares have been underperforming in recent weeks. As input costs rise, the planned active electric vehicles and premium launches planned for FY26, as well as the rural revival is approaching, all will comment at the upcoming annual general meeting and investor meetings.
The key triggers to be viewed in FY26:
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Rural demand and monsoon related emotions
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Premium and electric vehicle strategy
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High profit margin trajectory for marketing spending
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Export market expansion
Hero Motocorp offers solid Q4 and record 25-year performance, comfortably beating Zee's business estimates. With generous dividends and encouraging comments, the stock may see new investor interests, especially as rural demand and electric vehicle push begin to play.
