Hero MotoCorp posts highest-ever quarterly revenue as GST cuts spur demand

India’s largest two-wheeler maker Hero MotoCorp on Thursday said its profits rose 15% year-on-year. ₹1,275 crore in the third quarter of fiscal 2026 (FY26), with revenue up 21% ₹12,784 crore.

Record quarterly revenue was driven by a 16% increase in sales to 1.69 million units as GST cuts at the end of September came into full force in the October-December period.

Commenting on the quarterly results, Vivek Anand, chief financial officer of Hero MotoCorp, said, “The helpful macroeconomic factors and positive GST 2.0 tailwind helped revive rural demand, further boosting consumer interest in motorcycles and growth of the economy.” he said.

Except for one-time effect ₹New Delhi-based company posts net profit of ₹ 119 crore from new labor laws ₹1,439 crore, the highest in the last quarter.

TVS and Bajaj Auto are also eyeing all-time highs

Hero’s figures are in line with TVS and Bajaj, which recorded their highest-ever quarterly revenues and profits in the October-December period. Consolidated net profit of Hosur-based TVS reached a record, increasing by 46% on an annual basis ₹891 crore in the October-December quarter, while Pune-based Bajaj Auto reported a 25% increase in consolidated net profit. ₹2,749 crore.

TVS’s revenue increased by 33% YoY ₹Bajaj Auto’s revenue increased 23% to Rs 14,745 crore ₹16,640 crore.

Shares of Hero, TVS and Bajaj Auto have risen 6%, 7% and 12% respectively since the start of the festive season in October, outpacing the Nifty Auto index which has risen 3% in the same period.

Outlook for increase in export and demand momentum

Investors’ bullish expectations confirm that all three companies recorded strong growth in exports in the October-December quarter. While Hero saw a 41% increase in volumes, TVS saw a 35% increase in exports, while Bajaj Auto also recorded a 14% growth.

All three two-wheeler manufacturers offered a bullish outlook, betting that the demand momentum will continue in the coming months.

Industry trends for January show sales momentum has only strengthened in the past few months, analysts said.

“Retail trends continued to remain strong across most segments, indicating sustained momentum post the festive season. The export segment continued to see strong traction in CV, tractor and 2W segments. Most OEMs (original equipment manufacturers) reported numbers beyond our expectations,” analysts at Kotak Institutional Equities wrote in a note dated February 2.

Sector growth beyond festivals

Two-wheeler sales rose 17% to 5.7 million units in the October-December period as festivals and GST cuts boosted demand, according to data from the Society of Indian Automobile Manufacturers (Siam). It was the highest figure so far this quarter.

KN Radhakrishnan, director and CEO of TVS Motor, had said during the earnings call on January 28, “We have grown ahead of the industry and we are extremely confident that this momentum will continue both on the industry side and outperform industry growth in the fourth quarter.”

Agreeing with comments about rising demand, Rakesh Sharma, managing director of Bajaj Auto, said on January 30 that the quality of growth improved as customers looked to upgrade their products during the quarter.

“The motorcycle industry has gone from being in tight negative territory to double-digit positive growth; it’s also the quality of the growth; the upper segments are outperforming the lower segments and that’s performing very well for us because our portfolio is based on the premise of trying to persuade customers to upgrade,” Sharma told reporters.

Sharma added that the momentum in the sector will continue as long as inflation rates remain under control.