🔍

HEROMOTOCO - Hero Motocorp

📊 NSE: HEROMOTOCO 🏢 Automobiles - Motorcycles / Mopeds 📅 Last Updated: 12/13/2025 22:54

📢 Recent Corporate Announcements

Hero MotoCorp Tax Demand Slashed from ₹177.96 Cr to ₹27 Cr via CIT(A) Orders

🟢 POSITIVE ⭐ 6/10

LEGAL 📅 12 Mar 2026, 03:28 PM

Hero MotoCorp has received favorable appeal orders from the Commissioner of Income Tax (Appeals) regarding reassessment for multiple assessment years between 2013-14 and 2019-20. The total tax demand has been significantly reduced from ₹177.96 crore to just ₹27 crore, representing a relief of approximately ₹151 crore. The company intends to contest the remaining ₹27 crore demand before higher appellate authorities. This development reduces potential contingent liabilities and is a positive outcome for the company's financial position.

CIT(A) issued appeal orders for Assessment Years 2013-14 to 2017-18 and 2019-20
Total tax demand reduced by ₹150.96 crore, from an initial ₹177.96 crore to ₹27 crore
Company to file further appeals for the remaining ₹27 crore demand before higher authorities
Orders were received on March 11, 2026, following previous litigation updates in April and May 2024

💡 Investors should view this as a positive resolution of a significant tax uncertainty. No immediate action is required as the company continues to contest the residual amount.

Hero MotoCorp Issues Notice Regarding Withheld Dividends Due to Bank Detail Mismatches

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 10 Mar 2026, 09:41 PM

Hero MotoCorp has issued a specimen letter to shareholders whose dividend payments were rejected by the banking system. Following SEBI amendments effective November 19, 2025, the company has discontinued physical dividend warrants and now mandates electronic-only remittances. Dividends related to the record date of February 11, 2026, are currently withheld for accounts with incorrect bank details. Affected shareholders must update their bank information with their Depository Participant or the RTA, KFin Technologies, to receive their funds.

SEBI regulations effective November 19, 2025, mandate electronic-only dividend payments.
Dividends for the record date of February 11, 2026, were withheld due to bank rejection.
Physical 'payable-at-par' warrants and cheques have been officially discontinued.
Shareholders must update bank details with KFin Technologies or their DP to release withheld amounts.
The company encourages shareholders to convert physical holdings to dematerialized form.

💡 Shareholders who have not received their dividends should immediately verify and update their bank account details with their Depository Participant or RTA. No action is required for investors who have already received their dividend credits electronically.

Hero MotoCorp to Attend Arihant Capital Investor Conference on March 11, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 06 Mar 2026, 12:54 PM

Hero MotoCorp Limited has scheduled a virtual interaction with institutional investors and analysts. The company will be participating in the Arihant Capital Bharat Connect Conference: Rising Stars - 2026. The meeting is slated for March 11, 2026, and will be conducted in a group format. This disclosure is a routine filing under SEBI Listing Obligations and Disclosure Requirements.

Participation in Arihant Capital Bharat Connect Conference: Rising Stars - 2026
Meeting date scheduled for March 11, 2026
The interaction will be a virtual group meeting with investors
Compliance filing under Regulation 30 of SEBI (LODR) Regulations, 2015

💡 No immediate action is required as this is a routine investor meeting; however, investors should monitor for any subsequent investor presentations or transcripts for strategic updates.

Hero MotoCorp to Attend JP Morgan India Forum in Singapore on March 9, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 03 Mar 2026, 04:41 PM

Hero MotoCorp Limited has announced its participation in the JP Morgan India Forum scheduled for March 9, 2026. The event will be held in Singapore and will involve meetings with a group of institutional investors. This disclosure is a routine filing under Regulation 30 of the SEBI (LODR) Regulations, 2015. Such interactions are standard for large-cap companies to maintain engagement with the global investment community.

Participation in the JP Morgan India Forum scheduled for March 9, 2026
The meeting venue is located in Singapore
Nature of the meeting is an Investor Group conference
Compliance filing under SEBI Listing Obligations and Disclosure Requirements

💡 Investors should watch for any investor presentations or transcripts released after the conference for updates on the company's EV strategy and rural demand outlook. No immediate action is required as this is a routine disclosure.

Hero MotoCorp Reports Strong 44% Y-o-Y Dispatch Growth with 5.58 Lakh Units in Feb 2026

🟢 POSITIVE ⭐ 7/10

ROUTINE 📅 01 Mar 2026, 04:16 PM

Hero MotoCorp reported a robust 44% year-on-year growth in total dispatches for February 2026, reaching 5.58 lakh units compared to 3.88 lakh units last year. The performance was bolstered by strong demand in the 100cc-125cc motorcycle segment and a significant surge in scooter volumes. The company's electric vehicle brand, VIDA, saw its market share triple with 12,514 registrations, while global exports grew by 34% to 41,248 units. Overall YTD volumes for FY26 stand at 5.87 million units, reflecting steady growth over the previous fiscal year.

Total dispatches grew 44% Y-o-Y to 558,216 units in February 2026.
Scooter segment volumes increased significantly to 58,460 units from 35,756 units last year.
Global business exports rose 34% Y-o-Y to 41,248 units, driven by the premium portfolio.
VIDA EV brand recorded 12,514 VAHAN registrations, achieving a 3X growth in market share.
Domestic sales reached 516,968 units, up from 357,296 units in the previous year.

💡 Investors should monitor the sustainability of this growth, particularly in the EV and premium segments, which are driving margin expansion. The strong export performance also provides a healthy hedge against domestic market fluctuations.

Hero MotoCorp Schedules Four Investor Meetings and Conferences for February 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 17 Feb 2026, 12:58 PM

Hero MotoCorp has disclosed a schedule of four investor interactions taking place between February 20 and February 25, 2026. The engagements include participation in the Kotak Chasing Growth 2026 conference and IIFL's 17th Enterprising India Global Investors' Conference. Additionally, the company will host a group meeting for a Finnish contingent and a Non-Deal Road Show with Elara Capital. These meetings provide a platform for management to discuss business outlook with institutional investors.

Four investor events scheduled across Delhi and Mumbai from February 20 to February 25, 2026
Participation in IIFL's 17th Enterprising India Global Investors' Conference on February 24
Non-Deal Road Show organized by Elara Capital scheduled for February 25 in Mumbai
Group meeting with a Finland-based contingent organized by Kotak on February 20

💡 Investors should watch for any management commentary or analyst reports following these meetings for updates on growth strategy. No immediate trade is necessitated by this routine disclosure.

Hero MotoCorp Q3 FY26: Record Revenue of ₹12,328 Cr, Normalized PAT Up 20% YoY

🟢 POSITIVE ⭐ 9/10

EARNINGS 📅 12 Feb 2026, 02:50 PM

Hero MotoCorp reported its highest-ever quarterly revenue of INR 12,328 crores for Q3 FY26, marking a 21% year-on-year growth. Normalized PAT rose 20% to INR 1,489 crores, excluding a one-time labor code provision of INR 119 crores. The company demonstrated strong operational efficiency with ICE business EBITDA margins expanding by 100 bps to 17%, while the EV brand VIDA achieved a 10.8% market share. Management highlighted robust growth in global markets and the parts business, which reached record revenues of INR 1,673 crores.

Highest ever quarterly revenue of INR 12,328 crores, up 21% YoY
ICE business EBITDA margins expanded to 17%, driven by pricing and LEAP savings
Global business volumes grew 41% YoY with market share rising to 7.5%
VIDA EV market share expanded to 10.8% with improved unit economics
Maintained dominant 91% market share in the Deluxe 100cc motorcycle segment

💡 Investors should view the margin expansion in the core ICE business and the rapid scaling of the EV and premium portfolios as strong growth catalysts. The company's leadership in the entry segment combined with successful premiumization makes it a solid pick for long-term exposure to the Indian two-wheeler recovery.

Hero MotoCorp Releases Q3 & 9M FY26 Earnings Call Audio Recording

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 06 Feb 2026, 09:13 PM

Hero MotoCorp has officially released the audio recording of its earnings conference call for the quarter and nine months ended December 31, 2025. This disclosure is made in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The recording provides detailed management commentary on the company's financial results and operational performance for the period. Investors can access the full recording through the company's investor relations portal to gain deeper insights into the quarter's performance.

Audio recording for Q3 and 9M FY26 earnings call made available on February 6, 2026.
Complies with SEBI Regulation 30 and Schedule III requirements for transparency.
Covers financial and operational performance for the period ending December 31, 2025.
The recording is accessible via the Hero MotoCorp investor relations website.

💡 Investors should review the call recording for management's outlook on the two-wheeler market and EV segment progress. This is a routine regulatory filing and does not contain new financial data beyond what was previously reported in the earnings release.

Hero MotoCorp Appoints Prabhat Singh as Company Secretary and Compliance Officer

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 05 Feb 2026, 10:07 PM

Hero MotoCorp has announced the appointment of Mr. Prabhat Singh as the Company Secretary and Compliance Officer, effective February 5, 2026. Following this appointment, the company has updated its list of Key Managerial Personnel (KMP) authorized to determine the materiality of events under SEBI Regulation 30. The authorized KMPs now include Mr. Vivek Anand (CFO) and Mr. Prabhat Singh (CS). This is a routine administrative update to ensure regulatory compliance and continuity in corporate governance.

Mr. Prabhat Singh appointed as Company Secretary & Compliance Officer effective February 5, 2026
CFO Vivek Anand and CS Prabhat Singh are jointly authorized to determine materiality of information
The update complies with Regulation 30(5) of SEBI Listing Obligations and Disclosure Requirements
The Company Secretary is now the designated officer for making all material disclosures to stock exchanges

💡 This is a routine management change with no impact on business fundamentals; investors should focus on the upcoming Q3FY26 financial results.

Hero MotoCorp Appoints Prabhat Singh as CS; Updates Materiality Disclosure Team

🟡 NEUTRAL ⭐ 2/10

MANAGEMENT 📅 05 Feb 2026, 09:53 PM

Hero MotoCorp has updated its list of Key Managerial Personnel (KMP) authorized to determine the materiality of events under SEBI Regulation 30. This follows the appointment of Mr. Prabhat Singh as the Company Secretary and Compliance Officer, effective February 5, 2026. Mr. Singh will work jointly with CFO Mr. Vivek Anand to assess and disclose material information to stock exchanges. This is a standard administrative update to ensure regulatory compliance and continuity in corporate governance.

Appointment of Mr. Prabhat Singh as Company Secretary & Compliance Officer effective February 5, 2026
Mr. Vivek Anand (CFO) and Mr. Prabhat Singh (CS) are jointly authorized to determine event materiality
The update is in compliance with Regulation 30(5) of SEBI (LODR) Regulations, 2015
The Company Secretary is specifically authorized to handle all disclosures to the stock exchanges

💡 No action is required as this is a routine administrative update regarding compliance officers. Investors should focus on the company's upcoming quarterly performance and sales volume data.

Hero MotoCorp Declares Rs 110 Dividend and Rs 275 Cr Investment in Euler Motors

🟢 POSITIVE ⭐ 8/10

DIVIDEND 📅 05 Feb 2026, 09:50 PM

Hero MotoCorp has announced a substantial interim dividend of Rs 110 per share for FY 2025-26, representing a 5,500% payout on face value. The company is also deepening its EV sector presence with an additional investment of Rs 275 crore in Euler Motors. Furthermore, the board approved green energy investments totaling approximately Rs 7.92 crore for solar projects at its Haridwar and Neemrana plants. Alongside these financial moves, Mr. Prabhat Singh has been appointed as the new Company Secretary and Compliance Officer.

Declared an interim dividend of Rs 110 per equity share with a record date of February 11, 2026.
Approved an additional investment of Rs 275 crore in Euler Motors Private Limited.
Allocated Rs 7.92 crore for solar power wheeling projects under the Group Captive Mechanism.
Appointed Mr. Prabhat Singh, a Fellow CS with 17 years of experience, as Company Secretary.
Approved standalone and consolidated financial results for the quarter ended December 31, 2025.

💡 Investors should track the February 11 record date to qualify for the significant Rs 110 per share dividend payout. The increased investment in Euler Motors indicates a strong strategic commitment to the electric vehicle ecosystem.

Hero MotoCorp Declares Rs 110 Interim Dividend and Rs 275 Cr Investment in Euler Motors

🟢 POSITIVE ⭐ 9/10

DIVIDEND 📅 05 Feb 2026, 09:46 PM

Hero MotoCorp has announced a substantial interim dividend of Rs 110 per share (5,500%) for FY 2025-26, with the record date set for February 11, 2026. The company is also deepening its commitment to the EV sector with an additional investment of Rs 275 crore in Euler Motors. Furthermore, the board approved nearly Rs 8 crore in solar power projects for its Haridwar and Rajasthan plants under the group captive mechanism. These strategic moves, alongside the Q3 FY26 results, highlight a balance between high shareholder returns and sustainable expansion.

Declared an interim dividend of Rs 110 per equity share with a record date of February 11, 2026.
Approved an additional investment of Rs 275 crore in Euler Motors Private Limited through primary and secondary routes.
Allocated a total of Rs 7.92 crore for Solar Power Wheeling Projects at Haridwar, Neemrana, and Jaipur facilities.
Appointed Mr. Prabhat Singh as the new Company Secretary and Compliance Officer effective February 5, 2026.
Dividend payment to be completed by March 7, 2026, following the record date.

💡 Investors should ensure they hold shares by the February 11 record date to qualify for the Rs 110 dividend. The Euler Motors investment is a positive long-term signal for Hero's electric vehicle ecosystem strategy.

Hero MotoCorp to Invest Rs 275 Cr in Euler Motors and Declares Rs 110 Interim Dividend

🟢 POSITIVE ⭐ 9/10

M&A 📅 05 Feb 2026, 09:41 PM

Hero MotoCorp has approved an additional investment of Rs 275 crore in Euler Motors, an EV manufacturer, which will increase its stake to approximately 36% on a fully diluted basis. Alongside this strategic move, the company declared a substantial interim dividend of Rs 110 per equity share (5,500%) for FY 2025-26. Euler Motors has shown rapid growth, with its turnover increasing from Rs 49 crore in FY23 to Rs 191 crore in FY25. The board also approved green energy investments totaling approximately Rs 7.92 crore for its manufacturing plants.

Additional investment of Rs 275 crore in Euler Motors to increase stake to ~36% by April 30, 2026
Interim dividend of Rs 110 per share announced with a record date of February 11, 2026
Euler Motors turnover grew nearly 4x in two years, reaching Rs 191 crore in FY25
Investment of Rs 7.92 crore in solar power wheeling projects for Haridwar and Neemrana plants
Appointment of Prabhat Singh as the new Company Secretary and Compliance Officer

💡 Investors should benefit from the high dividend payout and the company's aggressive expansion into the high-growth commercial EV segment via Euler Motors. Maintain a positive outlook given the strong cash returns and strategic diversification.

Hero MotoCorp Q3 Revenue Up 21% to ₹12,328 Cr; Declares ₹110 Interim Dividend

🟢 POSITIVE ⭐ 9/10

EARNINGS 📅 05 Feb 2026, 09:35 PM

Hero MotoCorp reported a robust Q3 FY26 with its highest-ever quarterly revenue of ₹12,328 crore, marking a 21% YoY growth. Normalized PAT rose 20% to ₹1,439 crore, while EBITDA margins expanded to 14.7% despite a one-time ₹119 crore charge related to new labor codes. The company rewarded shareholders with a significant interim dividend of ₹110 per share and announced a strategic ₹275 crore investment in Euler Motors to bolster its EV presence.

Revenue from operations grew 21% YoY to ₹12,328 crore with 16% volume growth to 16.97 lakh units.
Normalized PAT increased 20% to ₹1,439 crore; Reported PAT stood at ₹1,349 crore after exceptional items.
Declared an interim dividend of ₹110 per share (5500%) with a record date of February 11, 2026.
EBITDA grew 23% YoY to ₹1,810 crore with margins expanding by 22 bps to 14.7%.
Approved ₹275 crore additional investment in Euler Motors and ₹7.92 crore for solar power projects.

💡 The strong volume growth and margin expansion reflect healthy demand and operational efficiency. Investors should benefit from the high dividend payout and the company's aggressive expansion into the EV and premium segments.

Hero MotoCorp Declares Rs 110 Interim Dividend and Rs 275 Cr Investment in Euler Motors

🟢 POSITIVE ⭐ 9/10

DIVIDEND 📅 05 Feb 2026, 09:33 PM

Hero MotoCorp has announced a substantial interim dividend of Rs 110 per share (5,500%) for the financial year 2025-26, with the record date fixed as February 11, 2026. The company is also increasing its stake in the EV space with an additional investment of Rs 275 crore in Euler Motors Private Limited. Furthermore, the board approved green energy investments totaling approximately Rs 7.92 crore for solar power projects at its Haridwar and Neemrana plants. These announcements reflect strong cash reserves and a strategic focus on electric mobility and sustainability.

Interim dividend of Rs 110 per equity share (5,500%) for FY 2025-26
Record date for dividend fixed as February 11, 2026, with payment by March 7, 2026
Additional investment of Rs 275 crore in Euler Motors via primary and secondary routes
Investment of Rs 7.92 crore in Solar Power Wheeling Projects for Haridwar and Neemrana plants
Appointment of Mr. Prabhat Singh as Company Secretary and Compliance Officer

💡 Investors should note the upcoming record date of February 11 to be eligible for the Rs 110 dividend. The significant investment in Euler Motors reinforces the company's EV strategy and long-term growth potential in the commercial EV segment.

View All HEROMOTOCO Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

The company recorded its highest-ever quarterly revenue of INR 12,126 Cr in Q2 FY26, a 16% YoY growth. The ICE (Internal Combustion Engine) business revenue grew 16% YoY, while the parts, accessories, and merchandise business reported revenue of INR 1,533 Cr, reflecting a growth of 5%+. For H1 FY26, total revenue reached INR 21,705 Cr, up 5.3% YoY.

Geographic Revenue Split

The domestic market remains the primary revenue driver, accounting for approximately 95% of total volume dispatches in FY25. Global business, though a smaller contributor, saw a 77% growth in dispatches in Q2 FY26, with strong performance in Bangladesh, Nepal, Sri Lanka, and Colombia. The company now has a presence in 52 countries, including recent entries into Europe and the U.K.

Profitability Margins

Profitability has shown steady improvement; PAT for Q2 FY26 was INR 1,393 Cr, up 16% YoY. The PAT margin for FY25 stood at 11.1%, an increase from 10.2% in FY24. Operating margins (OPBDIT/OI) improved to 14.6% in FY25 from 14.1% in FY24, driven by price hikes and moderation in commodity costs.

EBITDA Margin

Overall EBITDA margin for Q2 FY26 improved by 54 bps YoY to 15.0%. This includes a significant drag from EV investments; the standalone ICE business EBITDA margin was much higher at 17.7%, up 121 bps YoY. EBITDA for Q2 FY26 reached INR 1,823 Cr, a 20% YoY increase.

Capital Expenditure

The company maintains a yearly capex spend of INR 1,000 Cr to INR 1,200 Cr, primarily for maintenance, greenfield manufacturing units, and portfolio upgrades. Additionally, strategic investments include INR 510 Cr for a 34.1% stake in Euler Motors in Q1 FY26 and over INR 765 Cr invested in Ather Energy across FY24 and Q1 FY25.

Credit Rating & Borrowing

Hero MotoCorp maintains a superior credit profile with an [ICRA]AAA (Stable) and [ICRA]A1+ rating. Borrowing costs are negligible as the company is virtually debt-free (Total Debt/OPBDIT of 0.1x). Interest coverage is exceptionally high at 82.81 times as of FY24, expected to remain above 80 times.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include steel, aluminum, and plastic resins (implied by commodity inflation mentions). Lower material costs were cited as a primary driver for the 121 bps improvement in ICE EBITDA margins in Q2 FY26.

Import Sources

Not disclosed in available documents, though the company operates manufacturing hubs in India, Colombia, and Bangladesh.

Key Suppliers

Not disclosed in available documents; however, the company maintains a robust vendor ecosystem and well-established quality control processes.

Capacity Expansion

Current annual production capacity is approximately 9.5 million units across eight manufacturing facilities (six in India: Dharuhera, Gurgaon, Haridwar, Neemrana, Halol, and Chittoor; two overseas: Colombia and Bangladesh).

Raw Material Costs

Raw material costs are a significant portion of the cost structure; however, the exact % of revenue is not specified. Management noted that 'lower material cost' and 'cost efficiencies' were key to the 17.7% ICE EBITDA margin achieved in Q2 FY26.

Manufacturing Efficiency

Core RoCE improved significantly to 94.3% in FY25 from 79.0% in FY24, driven by higher asset utilization and recovering industry sentiments.

Logistics & Distribution

The company utilizes a strong dealership network and a digital financing platform with 15+ leading financiers to streamline distribution and customer acquisition.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth will be driven by a 'Hero 2.0' and 'Premia' retail strategy, aggressive expansion in the 125cc segment (Glamour X, Xtreme 125R), and scaling the Vida EV brand. The company is also targeting global markets with Euro5+ compliant models and expanding its premium portfolio through the Harley Davidson partnership and the 440cc platform.

Products & Services

Motorcycles (entry, executive, and premium), scooters, electric two-wheelers (e2W), spare parts, accessories, and merchandise.

Brand Portfolio

Splendor, Passion, HF Deluxe, Glamour X, Xtreme 125R, Karizma XMR, Vida (V1, VX2), Destini 125, Xoom, Mavrick 440, and Harley-Davidson X440.

New Products/Services

Recent launches include the Destini 125 and Xoom 125 (capturing 10% of the 125cc scooter segment) and the Vida VX2 Go. The premium segment (Mavrick 440) is expected to increase market share from the current 1.7%.

Market Expansion

Targeting Europe and the U.K. with Euro5+ models; expanding the 'Premia' store network for premium bikes and 'Hero 2.0' for upgraded customer service in India.

Market Share & Ranking

World's largest two-wheeler manufacturer. Domestic motorcycle market share is ~43% (FY25); overall domestic 2W market share is ~29-30%. EV market share reached 11.7% in Q2 FY26.

Strategic Alliances

Partnership with Harley-Davidson Inc. for co-developed premium motorcycles (X440) and a strategic stake in Ather Energy (37.9%) and Zero Motorcycles for EV technology.

🌍 External Factors

Industry Trends

The industry is shifting toward 'premization' (125cc+ and 400cc+ segments) and rapid EV adoption. Hero is positioning itself by launching premium models (Mavrick) and scaling its Vida EV brand to capture a 11.7% market share.

Competitive Landscape

Intense competition from Honda (HMSI), Bajaj Auto, and TVS Motors. The EV space is increasingly crowded with new OEMs, though Hero's Vida brand is now a top 2 player in 56 towns.

Competitive Moat

Hero's moat is built on its massive distribution network, brand equity in the entry-level segment (Splendor), and a conservative capital structure with INR 10,000 Cr in cash. These are sustainable due to the high cost of building a competing pan-India service network.

Macro Economic Sensitivity

Highly sensitive to rural demand and inflationary pressures, as motorcycles account for 93% of volume and the majority of sales are in the domestic entry-level segment.

Consumer Behavior

Shift toward aspirational and executive-level bikes (110cc-150cc), which saw Hero's segment share increase to 16.8% from 14.6%.

Geopolitical Risks

Global uncertainty, trade restrictions, and sanctions are identified as key enterprise risks that could disrupt the supply chain or international sales.

⚖️ Regulatory & Governance

Industry Regulations

Exposed to evolving emission norms (BS-VI/OBD II) and safety regulations, which increase compliance costs and require continuous R&D adaptation.

Environmental Compliance

DJSI score improved to 75 in FY25 from 69 in FY24. The company achieved 455% water positivity and 100% zero waste to landfill.

Taxation Policy Impact

The company benefits from GST reforms which support growth momentum; specific tax rate % not disclosed but standard corporate rates apply.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the pace of the ICE-to-EV transition, which requires heavy investment (INR 252 Cr in Q2 FY26 alone) and could temporarily suppress overall EBITDA margins.