Hero MotoCorp Posts Record ₹40,756 crore Revenue In FY25, But Market Share Erodes

While Hero MotoCorp might have lost its leadership position to its erstwhile partner, Honda, in April, 2025, its financial results in the fourth quarter of FY 24-25 are quite positive. For starters, the company reported its highest ever revenue from operations and Profit After Tax (PAT) for the year, amounting to ₹40,756 crore and ₹4,610 crore respectively. During the January 2025-March 2025 quarter Hero’s operational revenue stood at ₹9,939 crore, which is a 4 per cent increase compared to the same period last year. This revenue growth was accompanied by an even stronger rise in profitability, with net profits climbing 6 per cent to reach ₹1,081 crore. It also declared a dividend of ₹65 per equity share, including the interim dividend of ₹100 per share, after which the total dividend for FY 2024–25 amounts to ₹165 per equity share, representing a payout of 8,250%. 

The positive financial outcomes were supported by encouraging sales volume figures. Hero MotoCorp delivered 58.99 lakh units of motorcycles and scooters in the last FY. But sales of its commuter motorcycles have dropped and Honda has caught up in this regard quite aggressively. Last month, Hero MotoCorp dropped to fourth position for the first time ever in monthly sales as it was overtaken by Honda, TVS and Bajaj Auto. 

(Also Read: Auto Sales April 2025: Honda, TVS And Bajaj Overtake Hero MotoCorp In Monthly Sales)

Products like the Hero Destini 125, or the Hero XPulse 200 Dakar Edition, and the Xtreme 160R 2V 2024 Edition have helped garner interest and raked in more sales in FY25. But the main concern for the brand is that apart from the Hero Splendor, its other commuter bike sales have been falling resulting in Honda eating into its market share with the CB Shine 125 and the Unicorn 150. 

Hero hasn’t been sitting quiet though as it entered the premium category with the likes of the Hero Xoom 160, Xtreme 250R, and the Hero XPulse 210 – however, since deliveries are yet to commence, we are yet to ascertain how well these products will be received by the masses. The other big problem segment for the brand has been the scooter segment, which has witnessed robust growth, while Hero scooters have failed to make a lasting impression. Honda Activa sales have been going strong and the new TVS Jupiter 110 has been a runaway success. For Hero MotoCorp to regain its lost market share, its commuter motorcycle portfolio and the new range of scooters will need to fire. Even in the EV space, the Vida range of electric scooters haven’t been able to make the desired impact and it’s been trailing Bajaj and TVS with a huge gap.    

“Our success during the year was underpinned by robust growth across the premium, scooter, and EV segments, fueled by several new product launches. Export volumes outpaced industry trends, and we further expanded our premium retail footprint across India while entering new global markets. We are observing strong retail traction, especially in our new premium and scooter offerings. Continued consolidation in the core segment, growth in the 125cc category, and the upcoming EV launch position us well for sustained momentum,” noted Vikram S Kasbekar, Executive Director & Acting Chief Executive Officer

Hero MotoCorp also highlighted progress in diversifying its business portfolio, particularly noting advancements in its electric vehicle segment. The brand recently finalised a strategic investment of ₹510 crore to acquire a significant stake in Euler. Moving forward, the brand will also work on expanding the Harley-Davidson X440 with newer variants. The company has also increased production capacity for its Vida electric scooter line and expanded its market reach through additional dealership locations across the country.