Hero Motors Shares Surge Over 6.5% as Q2 Net Profit Jumps 115% to ₹10.2 Crore

Shares of newly listed auto components manufacturer Hero Motors Ltd surged over 6.5% during Wednesday's trading session, tracking robust financial results for the second quarter ended September 30.

The stock opened at ₹161 on the National Stock Exchange (NSE), up from Tuesday’s close of ₹155.19, and touched an intraday high of ₹167.39. On the BSE, the counter advanced as much as 8% to hit a high of ₹168.

Stellar Operational Performance in Q2

Hero Motors reported a standout performance for the July–September period, driven by strong volumes and expanded operational efficiencies:

• Net Profit: Consolidated net profit surged 115% year-on-year to ₹10.2 crore, compared to ₹4.73 crore reported in the corresponding quarter of the previous fiscal year.
• Revenue from Operations: Revenue grew 24.9% year-on-year to ₹319.3 crore, up from ₹255.7 crore in the same period last year. Total income for the quarter stood at ₹322.64 crore.
• Operating EBITDA: Earnings before interest, tax, depreciation, and amortisation (EBITDA) leaped 92% year-on-year to ₹35.9 crore against ₹18.7 crore in the prior-year quarter.
• Operating Margin: EBITDA margin widened significantly by 400 basis points to 11.3%, compared to 7.3% in the corresponding period of the previous year.

Sequentially, net profit declined 31% from the preceding quarter, while total expenses for the period increased 19% year-on-year to ₹307.06 crore.

Strategic UK Acquisition to Boost Drivetrain Footprint

Alongside its quarterly earnings, Hero Motors announced that it has agreed to acquire an additional 39% stake in its subsidiary, Hewland Engineering Ltd (HEL).

The acquisition involves purchasing 8,039 equity shares with a face value of £1 each from existing shareholders William Hewland and Siobhan Hewland for an all-cash consideration of approximately £0.60 million. Once completed, the deal will raise Hero Motors’ shareholding in HEL from 51% to 90%.

Based in the United Kingdom, Hewland Engineering designs and manufactures high-performance transmission and drivetrain solutions for performance automotive, motorsport, electric vehicle (EV), and aerospace applications. The transaction does not require regulatory or governmental clearances and is expected to close within six months.

Share Performance Since Listing

Hero Motors made its debut on the Indian bourses on September 23 at ₹82 per share against an issue price band of ₹79 to ₹84. Despite a modest debut, the counter has witnessed sustained buying momentum, surging to an all-time high of ₹178.84 in early October. With Wednesday’s gains, the stock has rallied more than 67% on a year-to-date basis, taking the company's market capitalisation to around ₹7,050 crore.

Tags: Hero Motors NSE BSE Auto Components Hewland Engineering