Hero Motors shares soar 8% as Q2 net profit more than doubles to Rs 10 crore
Sequentially, however, net profit declined more than 31% from Rs 14.8 crore in the April-June quarter of FY27. Revenue from operations rose around 25% YoY to Rs 319 crore in the quarter under review, compared with Rs 256 crore in the corresponding quarter of FY26.
Hero Motors’ total income increased over 22% YoY to Rs 322.64 crore in Q2 FY27, from Rs 263.94 crore reported in the same quarter of FY26. Total expenses meanwhile increased over 19% YoY to Rs 307.06 crore during the quarter under review.
Also read | Hero Motors shares rally after lackluster debut. Should you buy, sell or hold?
Along with the Q2 results, Hero Motors announced that it will acquire another 39% stake in subsidiary Hewland Engineering, taking its stake to 90%. The UK-based subsidiary designs and manufactures transmission and drivetrain components for performance automotive, motorsport, EV and aerospace industries.
Hero Motors share price
Hero Motors shares made a muted debut on the stock market late in September, listing at Rs 82 apiece on NSE. This marked more than 2% discount over the IPO price of Rs 84 apiece. After the muted market debut, the stock skyrocketed more than 118% in less than two weeks to hit a 52-week high of Rs 178.84 apiece on October 5.
This came after Hero Motors’ Rs 1,000 crore IPO saw strong investor interest during its three days of public bidding, being subscribed nearly 7 times its offer size. The non-institutional investor (NII) portion was subscribed 9.86 times, while that of retail investors was booked over 8 times. The portion kept for qualified institutional buyers (QIBs) meanwhile was booked 1.5 times.The initial public offering of the company comprised a fresh issue of 7.14 crore shares worth Rs 600 crore and an offer for sale (OFS) of 4.76 crore shares worth Rs 400 crore by existing shareholders. The IPO was priced in the range of Rs 79 to Rs 84 per share, with a minimum lot size of 178 shares.
The shares have fallen around 13% from the record high level to close at Rs 155.19 apiece on Tuesday. The company’s market capitalisation stood at around Rs 7,049 crore.
Also read | ICICI Life Q2 net profit rises 25% on better product mix
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
