Hero MotoCorp shares hit 52-week high, crosses ₹6,000-mark after a year; here is what’s driving the rally

The stock has been rallying for four sessions and has crossed ₹6,000 per share for the first time since September 2024. At close, Hero MotoCorp shares settled at ₹6,007.50 apiece on NSE, rising 2.23%.

The stock has climbed over 9% in a week, while for a three-month period, it has jumped 17%. On a yearly basis, it has zoomed 26%. Since the beginning of 2025, Hero MotorCorp shares have soared more than 44%. The firm has a market capitalisation of ₹1.21 lakh crore.

Hero MotoCorp's Q2 earnings

The company had reported quarterly revenue of ₹12,126 crore, up 16% from ₹10,463 crore in the previous year. For H1 FY26, revenue stood at ₹21,705 crore, reflecting a 5% year-on-year increase.

The EBITDA margin for the quarter expanded by 55 basis points (bps) to 15.0%, while profit after tax (PAT) came in at ₹1,393 crore, also up 16% year-on-year. On an H1 FY26 basis, the EBITDA margin improved by 33 bps to 14.8%, and PAT rose 8% to ₹2,519 crore.

On a consolidated basis, revenue for the quarter was ₹12,218 crore, and PAT stood at ₹1,321 crore. For H1 FY26, consolidated revenue reached ₹21,946 crore, while PAT came in at ₹3,027 crore, reflecting steady performance across business units.

During the festive season, Hero MotoCorp recorded strong growth in ICE VAHAN registrations, rising 16.2% and outpacing industry growth of 14.7% over the comparable period last year. This performance contributed to a 40-bps market share gain.

Commenting on the earnings, Chief Financial Officer Vivek Anand had said, “The change in the GST regime has fundamentally simplified India's indirect tax structure and demonstrably improved consumer sentiment. The industry witnessed direct benefits of this policy reform, reflected in strong market performance. In Q2FY’26, the auto industry returned to broad‐based growth, further supported by positive festive sentiment. Hero MotoCorp witnessed strong momentum, aided by the success of our new launches, expanding product portfolio, and customer‐centric marketing campaigns. Furthermore, our Emerging Mobility business—VIDA—returned growth ahead of the industry average, and the company outperformed the markets in global business.”

Anand had further said that the company expects the growth momentum to continue, driven by gains from GST reforms, healthy macroeconomic indicators, and a strong product portfolio.

Analysts' view on Hero MotoCorp

Following the earnings, various analysts have shared their positive outlook for the two-three-wheeler maker.

They added that traction in the electric two-wheeler (E2W) segment is improving, while margins remain resilient despite the ramp-up in the 2W business. ICE margins, in particular, continue to outperform expectations. Key catalysts, according to the analysts, include further market share gains in ICE two-wheelers, accelerating E2W volumes, and consistent margin performance.

Macquarie also highlighted that the Street’s increasing willingness to assign a higher valuation multiple could act as an additional tailwind for the company.

JP Morgan analysts said the outlook for Hero MotoCorp has strengthened, supported by a combination of successful new launches and prudent inventory management. They noted that the recent GST cuts appear to have revived demand in the lower end of the two-wheeler market—a segment where Hero MotoCorp has a strong foothold. The analysts also pointed out that the company’s improving EV market share, historically a weak spot, adds further confidence to the growth trajectory.