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Key Conference Call Highlights
Domestic 2Ws – Industry update:
* FY26 performance remained strong with the highest-ever revenue of ~INR 468.3 Bn, up ~15% YoY and PAT of ~INR 52.7 Bn up, ~14% YoY while maintaining global leadership for 25 consecutive years
* Market share gains achieved across 100–110cc motorcycles, scooters, EVs and premium segments supported by 9 launches and multiple refreshes
* Scooter segment outperformed with ~48% YoY growth in FY26, driven by Destini and Xoom portfolio alongside capacity ramp-up
* Premium motorcycle portfolio, including Harley-Davidson range, grew ~26% YoY in FY26, reflecting improving traction in higher cc segment
* Retail growth outpaced dispatches, leading to a reduction in dealer inventory to ~5 weeks, indicating improved channel health
* ASP increased ~3% QoQ in Q4FY26, supported by a better mix and pricing actions
* Industry outlook remains positive with high single-digit growth expected in FY27E, with scooters growing faster than motorcycles
Update on EVs:
* VIDA EV volumes grew ~2.5x YoY, reflecting strong scale-up in the segment
* EV business remains in the investment phase with ~INR 2.2 Bn EBITDA investment in Q4FY26
* Capacity expansion underway with ~50% increase in the near term, followed by further doubling within FY27E
* Current run-rate at ~60k units with the ambition to scale-up towards ~100k units over time
* EBITDA loss per unit improving sequentially, supported by scale and cost efficiency
* PLI coverage achieved for ~60% of the portfolio, targeted to increase to ~90%, translating to ~15% revenue benefit
Update on exports:
* Global volumes grew ~41% YoY with FY26 volumes at ~4.02 lakh units
* Export revenue stood at ~INR 35 Bn, reflecting a strong traction in overseas markets
* Presence expanded to ~52 countries with a focus on Latin America, Africa and South Asia
* Bangladesh remains a key market, while Sri Lanka and Africa are emerging as high-growth regions
* Premium products contributing meaningfully to export mix improvement
* Near-term risks from logistics inflation and fuel price increases are partly mitigated through pricing
Capacity and investments
* Capex plan of ~INR 15 Bn for FY27E focused on scooters EVs and parts ecosystem.
* Destini scooter capacity increased by ~50%, while Xoom capacity is being doubled in Q1FY27E
* EV capacity ramping up from ~15k to ~25k per month with further doubling planned within FY27E
* Investment of ~INR 7 Bn planned for the second global parts centre to double parts handling capacity
Other highlights
* Commodity inflation of ~INR 2,000–2,100 per unit in Q4FY26 largely offset in absolute terms but led to ~100 bps gross margin pressure
* ~2% price hike taken on April 26, while cost inflation remains in high single digit, creating near-term margin headwinds
* Management reiterated medium-term EBITDA margin guidance of 14–16%
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