Hero MotoCorp Approves Rs 170 Crore Investment for Global Parts Centre at Tirupati, Reports 16% Profit Growth in Q2

Hero MotoCorp has approved an investment of up to Rs 170 crore towards setting up Global Parts Centre (GPC) 2.0 at Tirupati in Andhra Pradesh. The board of directors made this decision during a meeting held on 13 November 2025. Commercial operations at the facility are expected to commence during the financial year 2027-28.

The investment in the Global Parts Centre at Tirupati represents part of Hero MotoCorp's ongoing expansion strategy. This follows the company's earlier strategic investments in the electric vehicle sector, including Rs 525 crore in Euler Motors for a 32.5 per cent stake in March 2025. The investment provided Hero MotoCorp entry into the electric three-wheeler market.

The company reported its financial results for the quarter and half year ended 30 September 2025 at the same board meeting. The two-wheeler manufacturer posted a net profit of Rs 1,393 crore for the second quarter, marking a growth of 15.7 per cent compared to Rs 1,204 crore in the corresponding period of the previous fiscal year. Revenue from operations rose 15.9 per cent to Rs 12,126 crore from Rs 10,463 crore in the year-ago quarter.

The company sold 16.91 lakh units of motorcycles and scooters during the quarter, an increase of 11.25 per cent from 15.20 lakh units in the same period last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 20 per cent to Rs 1,823 crore, with the EBITDA margin expanding by 55 basis points to 15 per cent. 

During the festive season, the company's internal combustion engine vehicle registrations grew 16.2 per cent, exceeding the industry growth rate of 14.7 per cent. This resulted in a market share gain of 40 basis points, driven by performance in the entry, deluxe and scooter segments. 

Hero MotoCorp's electric mobility business, VIDA, achieved its highest market share of 11.7 per cent in the electric vehicle segment. The company's global business recorded dispatch growth of 77 per cent during the quarter, three times the industry average. The growth was led by markets including Bangladesh, Nepal, Sri Lanka and Colombia. 

For the first half of the financial year 2025-26, the company reported revenue of Rs 21,705 crore and profit after tax of Rs 2,519 crore. The company sold 30.58 lakh units of motorcycles and scooters during this period. 

Vivek Anand, chief financial officer of Hero MotoCorp, attributed the performance to the simplified GST regime, which has improved consumer sentiment. He stated that the company expects growth momentum to continue, supported by GST reforms, macroeconomic parameters and the product portfolio. 

In October 2025, Hero MotoCorp invested Rs 124 crore to increase its shareholding in electric scooter manufacturer Ather Energy by 2.2 per cent. With this transaction, Hero MotoCorp holds over 40 per cent of Ather Energy's total shareholding. The company has made multiple investments in Ather Energy since 2023, including Rs 550 crore in a rights issue approved in September 2023. 

Hero MotoCorp operates six manufacturing facilities in India with a combined capacity, along with facilities in Colombia and Bangladesh. The company announced entry into European markets including Germany, France, Spain and the United Kingdom during the second quarter of the financial year 2025-26. 

The company's investments in manufacturing infrastructure, electric vehicle partnerships and global expansion reflect its strategy to strengthen its position in the two-wheeler market. Hero MotoCorp has maintained its focus on technology investments, product innovation and international market development.