Hero MotoCorp, based in India, defies anticipations of a decrease in quarterly profits due to an increase in export sales.
In the first quarter of 2025-26 (April-June), Hero MotoCorp, the leading two-wheeler manufacturer in India by sales, experienced a significant shift in its sales figures. While domestic sales dropped by about 12%, exports grew by a record 26%, propelling the company's overall performance.
The export growth was driven by strong demand in Africa, Latin America, and Asia. However, the MENA region was subdued due to geopolitical issues. Despite the domestic sales decrease, Hero MotoCorp managed to post a flat standalone net profit growth at ₹1,126 crore, slightly above the ₹1,123 crore in Q1 of the previous fiscal year.
The profit resilience was attributed to the higher export revenue and other income sources. To summarise the performance comparison in Q1 2025:
- Exports grew 26%, reaching record revenues and driving profitability.
- Domestic sales fell by approximately 12%, causing an overall sales volume decline of 11%.
- Standalone net profit remained flat (₹1,126 crore vs ₹1,123 crore YoY).
- Export markets contributing strongly included Africa, Latin America, and Asia.
Recent monthly data from July 2025 showed a promising sign of recovery for Hero MotoCorp. Domestic sales improved by 21% year-over-year, while exports continued to rise.
Looking ahead, Hero MotoCorp plans to further boost exports by over 40% this year, aiming for 10% revenue from global business. The company expects demand to remain healthy in the coming quarters due to the upcoming festive season and a robust line-up of new products.
Interestingly, the company's quarterly performance mirrored the broader Indian two-wheeler industry, which reported a 6% drop in domestic sales and a 23% surge in exports. Other players in the industry, such as Bajaj Auto and TVS Motor Co, also reported better-than-expected profits on the back of strong local and overseas demand.
The quarterly revenue for Hero MotoCorp decreased by 5.6% to 95.79 billion rupees. However, the profit for the three months to June end was 11.26 billion rupees, up from 11.23 billion rupees a year ago. The company's global business operations outperformed industry trends, as stated in a company statement.
It's worth noting that Hero MotoCorp has been expanding its overseas shipments to include larger parts of traditional export markets like South America and continental Africa. The company has also been partnering with distributors in Europe to strengthen its global footprint.
In other news, China's Alibaba is reportedly exiting India's Eternal via a block deal, according to CNBC-Awaaz reports. This development, however, does not seem to have impacted Hero MotoCorp's strong performance in Q1 2025.
- The strong performance of Hero MotoCorp in Q1 2025, with a 26% growth in exports and flat standalone net profit, outperformed industry trends in the Indian two-wheeler market.
- In an effort to further enhance its global business, Hero MotoCorp aims to boost exports by over 40% this year, with a target of generating 10% revenue from international markets, thereby following global financial and business trends.
