Shares of automobile and auto parts companies Hero Motors, SML Mahindra, and Wheels India were locked at the 10% lower circuit on the BSE during Wednesday's intraday trading session. According to reports from Business Standard, the overall weakness in the equity market contributed to the decline, with the BSE Sensex down 0.76% at 73,293.54 at 02:28 PM. The lockout occurred as part of the exchange's circuit breaker mechanism designed to prevent excessive volatility in individual stocks.
Hero Motors was locked at the 10% lower circuit at ₹122.70 on the BSE, with a combined 21.56 million shares changing hands during the session. As reported by Business Standard, there were pending sell orders for 2.5 million shares on both the NSE and BSE. With Wednesday's decline, the stock's market price dropped 31% from its post-listing high of ₹179 on October 5, 2026. The stock had hit a 52-week low of ₹80.50 on listing day, September 23, 2026, but currently trades 46% higher over its issue price of ₹84 per share. Hero Motors manufactures and supplies auto components including gearboxes, continuous variable transmission and other components for the two-wheeler and electric bicycles segments. According to Crisil Ratings, the company's revenue is expected to grow steadily over the medium-term, supported by mid-teen growth in the powertrain segment and steady performance of the alloy & metal (A&M) business.
Hero Motors delivered exceptional Q2 results for the quarter ended September 2026, with net profit surging 115.6% year-on-year to ₹10.2 crore compared with ₹4.73 crore in the corresponding quarter last year. Revenue from operations increased 24.9% to ₹319.3 crore from ₹255.7 crore, while operating performance strengthened significantly. EBITDA jumped 92% year-on-year to ₹35.9 crore from ₹18.7 crore, with the EBITDA margin expanding to 11.3% from 7.3% a year earlier, marking an improvement of around 400 basis points. Technical analysts are expressing caution about the stock's near-term prospects, with SAHI's Gaurav Arora noting that the stock has corrected sharply from its October highs and is now approaching a crucial ₹112 support level. A break below this level could trigger further downside, while the stock's ability to hold this support will be crucial for determining whether it stabilises or extends its decline.
Alongside its quarterly results, Hero Motors announced plans to acquire an additional 39% stake in its UK-based subsidiary, Hewland Engineering Ltd (HEL) for approximately £0.60 million in cash. The proposed transaction involves the purchase of 8,039 equity shares from existing shareholders William Hewland and Siobhan Hewland, with Hero Motors' stake in the company increasing from 51% to 90%. The transaction is expected to be completed within approximately six months and does not require government or regulatory approvals. Hero Motors specialises in designing, developing and manufacturing powertrain solutions for automotive original equipment manufacturers (OEMs), with its product portfolio serving two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles across India, Europe, the US and ASEAN markets.
Hero Motors made its stock market debut on September 23, 2026, with shares listing at a discount to the IPO price before staging a sharp recovery. On the BSE, the stock opened at ₹82.10, down 2.26% from the issue price of ₹84, but subsequently rebounded to close at ₹98.51, up 17.27% over the IPO price. The company's ₹1,000-crore initial public offering (IPO) was subscribed 6.66 times on the final day of bidding, comprising a fresh share sale worth ₹600 crore and an offer for sale of ₹400 crore. Of the fresh issue proceeds, ₹190 crore was earmarked for repaying outstanding borrowings, while ₹200 crore was allocated towards purchasing equipment for capacity expansion at its facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining proceeds were intended for potential acquisitions, strategic initiatives and general corporate purposes.
