Synopsis: Hero MotoCorp shares jumped over 5% on Tuesday after the company outlined its FY26 strategy. Key plans include expanding into major European markets, launching more premium bikes with Harley-Davidson, and scaling up its EV business. Strong overseas growth and steady retail demand are seen as key drivers.
The Shares of a top two-wheeler maker jumped up to 5% on Tuesday after unveiling its FY26 growth roadmap. The company plans to expand globally with entries into key European markets. Strong overseas momentum and retail focus are seen as key drivers.
With a market capitalisation of Rs 88,831 Crores, the share price of Hero Moto Corp jumped over 5% on Tuesday to hit an intraday high of Rs 4448.70 per share from the previous day’s closing price of Rs 4249.30 per share.
What’s the News
In its FY25 annual report, Hero MotoCorp shared its strategic focus areas for FY26. These include scaling global operations, boosting premium products, and deepening its electric vehicle play.
1. Strategic Entry into Europe
Hero MotoCorp’s planned foray into major European markets Germany, France, Spain, and the UK in Q2 FY26 marks a pivotal step in its internationalisation strategy. This move is expected to open up high-value, premium-focused markets and diversify the company’s revenue mix beyond traditional strongholds like South Asia and Latin America.
2. Momentum in Overseas Business
After posting 43% year-on-year growth in international business in FY25, Hero is well-placed to capitalise on rising demand for affordable two-wheelers in global markets. The company’s strong positioning in emerging regions provides a solid foundation to expand further and build long-term scale abroad.
3. Making Premium Bikes with Harley-Davidson
Hero continues to strengthen its presence in the premium motorcycle segment through its deepening partnership with Harley-Davidson. The success of existing models and upcoming new platforms under this collaboration are expected to enhance brand value, improve margins, and attract aspirational buyers in India and overseas.
4. Accelerated EV Push
The company is doubling down on electric mobility with a Rs 510 crore investment in Euler Motors, expanding its play into the fast-growing electric three-wheeler segment. Simultaneously, it is scaling its Vida electric two-wheeler range, targeting urban and younger customers seeking sustainable and smart mobility options.
5. Retail Market Strength and Financial Access
Domestically, Hero is benefiting from a recovery in rural demand, better product availability, and effective marketing. With 65% retail finance penetration and well-managed inventory levels, the company is well-positioned to sustain retail momentum and avoid the pitfalls of overstocking, ensuring steady sales performance.
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About the Company
Hero MotoCorp, earlier known as Hero Honda, is one of India’s oldest and most trusted motorcycle manufacturers. The company began in 1984 through a technology partnership with Honda, Japan. Before entering the two-wheeler space, the Hero Group was well-known for selling bicycles under the Hero Cycles brand.
Today, Hero MotoCorp is the world’s largest two-wheeler manufacturer, offering innovative, affordable, and sustainable mobility solutions. With over 124 million happy customers across 48 countries, Hero continues to make a strong global impact.LINK
The company reported a revenue of Rs 40,923 crore in FY25, up by 8.3 percent from its FY24 revenue of Rs 37,789 crore. Coming to its profitability, the company reported a net profit rise of 16.9 percent to Rs 4,376 crore in FY25 from Rs 3,742 crore in FY24. The stock delivered an ROE and ROCE of 23.7 percent and 31.2 percent, respectively.
Written By Rohan Pandey
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