Auto components maker Hero Motors Ltd delivered impressive financial results for the first quarter of FY27, with consolidated net profit more than doubling to ₹10.2 crore compared to ₹4.73 crore in the corresponding quarter last year. According to CNBC TV18, revenue from operations grew 24.9% year-on-year to ₹319.3 crore from ₹255.7 crore in the year-ago period. The company's total income increased over 22% YoY to ₹322.52 crore in Q1 FY27, from ₹263.94 crore reported in the same quarter of FY26. However, on a sequential basis, the profit dipped nearly 33% from ₹14.8 crore in the previous quarter, while total expenses increased 19% YoY to ₹307.06 crore during the quarter under review. The EBITDA increased by 92% to ₹35.9 crore from ₹18.7 crore in the second quarter of the previous fiscal, with EBITDA margin expanding to 11.3% from 7.3%, demonstrating a 400 basis points improvement from the year-ago period.
The company's operational efficiency showed significant improvement with EBITDA jumping 93% year-on-year to ₹35.9 crore from ₹18.6 crore, as reported by Mint. The EBITDA margin expanded to 11.2% in the quarter from 7.3% a year earlier, demonstrating the company's ability to enhance profitability despite revenue growth. This margin expansion indicates improved operational leverage and cost management, suggesting the company is effectively scaling its operations while maintaining strong profitability metrics. The EBITDA margin expanded by approximately 390 basis points to 11.2% from 7.3% in the year-ago quarter, indicating a substantial improvement in operating profitability and that operating earnings grew faster than revenue during the period.
The segment breakdown reveals that Hero Motors' powertrain operations are the primary growth driver, with revenue from Powertrain Solutions increasing 25% year-on-year to ₹170.5 crore from ₹135.5 crore year-on-year. According to The Economic Times, the segment's segment result rose to ₹33.50 crore from ₹18.11 crore, making it the primary profit contributor. The Alloy and Metallics business also recorded strong growth, reaching ₹165.91 crore compared with ₹127.89 crore in the year-ago quarter, with 29% YoY growth to ₹165.9 crore for Q1FY27. This performance difference highlights the company's strategic focus on higher-margin powertrain solutions while maintaining exposure to the broader automotive supply chain.
Hero Motors shares gained 7.9% to hit an intraday high of ₹167.39 apiece on Wednesday, October 14, reacting to the strong quarterly results. As reported by CNBC TV18, the stock is up 99.3% from its issue price of ₹84 and 104% up from its listing price of ₹82. The stock listed on the exchanges on September 23, 2026, at a 2.4% discount to its issue price. The shares were among the most actively traded equities on the NSE, with nearly 21 million shares changing hands in the first 45 minutes of trade and total transaction value at ₹371.8 crore. This quarterly result marked the company's first quarterly earnings announcement since its market debut on September 23, 2026.
Hero Motors has announced plans to acquire an additional 39% stake in its subsidiary Hewland Engineering Ltd (HEL) for approximately £0.60 million in cash. As reported by The Economic Times, the acquisition involves 8,039 equity shares of £1 each and will increase Hero Motors' shareholding in HEL from 51% to 90%. The proposed transaction involves the purchase of shares from existing shareholders William Hewland and Siobhan Hewland. The UK-based subsidiary designs and manufactures transmission and drivetrain components for performance automotive, motorsport, EV and aerospace industries. The transaction is expected to be completed within approximately six months, with no governmental or regulatory approvals required.
