business · 2026-10-14

Hero Motors profit doubles, stock jumps 8%

Hero Motors profit doubles, stock jumps 8%

Photo: via The Economic Times

Hero Motors' quarterly profit more than doubled to Rs 10.2 crore, sending its stock up 8%. But investors are wondering if the profit is big enough for a company valued at about Rs 7,049 crore.

Is Hero Motors the same as Hero MotoCorp?

No. Hero Motors and Hero MotoCorp share the Hero name and the Munjal family history, but they are separate companies with separate owners and balance sheets. In 2010, the family split its empire among four branches. Hero MotoCorp became one branch's two-wheeler business, while Pankaj Munjal's branch took Hero Motors, which makes auto parts. Hero MotoCorp is one of Hero Motors' top ten customers.

Did Hero Motors just list on the stock market?

Yes, Hero Motors listed on the stock market in late September 2026, just before these results. Its IPO was priced at ₹84 per share, but it debuted lower at ₹82. Since then, the stock has soared over 118% to a high of ₹178.84 before falling back.

Is Hero Motors trying to move up the value chain?

Yes. Hero Motors is moving from making basic metal parts toward owning design and technology. Its deeper purchase of UK firm Hewland Engineering, which designs transmissions for motorsport and EVs, shows this. By combining Hewland's design skills with Hero Motors' low-cost Indian manufacturing, it aims for better margins.

What is the catch behind the 8% jump?

The catch is the comparison. Year-on-year, net profit more than doubled to ₹10.2 crore. But from the previous quarter, profit fell over 31%, from ₹14.8 crore. So the headline growth masks a quarterly decline, leaving investors to judge if the jump is a real trend or a one-time lift.

Can Hero Motors sustain its profit growth?

Not yet, based on one quarter. Net profit doubled year-on-year to ₹10.2 crore, but fell over 31% from the previous quarter. The 25% revenue growth and wider margin look promising, yet just this first result since listing is too little to call the trend sustainable.

What is the UK company Hero Motors is buying more of?

Hero Motors is buying another 39% of Hewland Engineering, a UK company that designs transmissions for motorsport, performance cars, EVs and aerospace. That will take its stake from 51% to 90%. Hero first bought into Hewland in 2022.

I recall it split from Honda long back, how it it doing?

Hero Motors is the auto-parts arm of the Munjal family empire, split from the motorcycle maker Hero MotoCorp in 2010 when the family divided its businesses among four branches. It makes sheet-metal components and powertrain systems, with Hero MotoCorp among its top ten customers but under separate ownership.

What made Hero Motors shares jump 8%?

Hero Motors shares jumped after it reported a more than 115% year-on-year rise in quarterly net profit, to ₹10.2 crore for July-September. Revenue also grew about 25% to ₹319 crore. Investors pushed the stock up 8% on that strong result.

Where is Hero Motors stock now after its highs?

Hero Motors shares have fallen about 13% from their peak. They hit a 52-week high of ₹178.84 in early October, but closed at ₹155.19 on Tuesday, with a market capitalisation of around ₹7,049 crore. That is still well above the IPO price of ₹84.

Which matters more, year-on-year doubling or quarter-on-quarter decline?

For Hero Motors, the year-on-year doubling matters more because it compares with the same season last year. The quarter-on-quarter decline compares with the previous three months, but one quarter is thin evidence. Investors want to know if the growth is a real trend or a one-time lift.

Why buy a British motorsport transmission firm?

Hewland designs high-performance transmissions used in motorsport, a field with strict standards. Hero Motors is strong at cheap, high-volume manufacturing in India. Combining the two lets Hero take Hewland's designs and mass-produce them cheaply for carmakers, especially as electric vehicles change what parts are needed.

Source: economictimes.indiatimes.com

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