Hero MotoCorp Q3 Preview: Net profit may climb up to Rs 1,130 crore YoY

Hero MotoCorp Q3 Preview: Motorcycle and scooter maker Hero MotoCorp will announce its December quarter of financial year 2025 (Q3FY25) results on February 6, 2025.

 

Hero MotoCorp is expected to report a steady performance for Q3FY25, with revenue growth driven by higher average selling prices (ASPs) rather than volume growth, analysts said. 

 

They also predict a slight increase in revenues across various forecasts, ranging from 3 per cent to 5 per cent year-on-year (Y-o-Y), supported by a richer product mix and the ramp-up of 125cc motorcycles. 

 

Margins are likely to see a modest decline or slight improvement, with Ebitda and net profit growing by around 4 per cent to 5 per cent. 

 

Key factors to watch will include demand trends, new product launches, and the performance of different motorcycle segments, particularly the 125cc and premium offerings. 

 

On the bourses, at 1:50 PM, Hero MotoCorp share price was trading 1.13 per cent lower at Rs 4,237.70. In comparison, BSE Sensex was trading 1.53 per cent higher at 78,366.85 levels.

 

Given this, here’s what top brokerages expect from Hero MotoCorp in Q3 results:

 

Nomura 

 

Nomura analysts estimate a 5 per cent Y-o-Y increase in revenue for Hero MotoCorp, with volumes remaining flat and a 5 per cent Y-o-Y rise in average selling prices (ASP). Margins are expected to decline by approximately 50bps Q-o-Q to 14 per cent. Thus, analysts predict a revenue of Rs 10,246.6 crore (up 5 per cent Y-o-Y), an Ebitda of Rs 1,434 crore (up 5 per cent Y-o-Y), and a net profit of Rs 1,117 crore (up 4 per cent Y-o-Y).

 

Kotak Institutional Equities 

 

Kotak Institutional Equities expects a 3 per cent Y-o-Y revenue growth in 3QFY25, supported by stable volumes and a 2-3 per cent increase in ASPs due to a richer product mix, including higher sales of premium motorcycles and the Xtreme 125. Ebitda margin is projected to improve by 20bps Y-o-Y to 14.2 per cent. 

 

Thus, analysts predict a revenue of Rs 9,977.7 crore (up 2.6 per cent Y-o-Y); adjusted net profit at Rs 1,099.7 crore (up 2.5 per cent Y-o-Y), and Ebitda at Rs 1417.7 crore (up 4.1 per cent Y-o-Y).  ALSO READ: Britannia's Q3 PAT likely to slip 5% YoY; margins may contract: Analysts

 

Nuvama 

 

Analysts at Nuvama expect revenue growth to be driven by higher realizations, with Ebitda margin staying flat. They highlight that demand trends and the timeline for new launches will be key factors to monitor. 

 

Nuvama forecasts a revenue of Rs 10,160.3 crore (up 4 per cent Y-o-Y), an Ebitda of Rs 1,421.6 crore (up 4 per cent Y-o-Y), and a PAT of Rs 1,129.5 crore (up 5 per cent Y-o-Y).