 "Hero MotoCorp shares gain 3% as dispatches rise 40% in December")
Shares of Hero MotoCorp Ltd. rose over 3 per cent on Friday after the company reported a dispatch growth of 40 per cent in December 2025, along with a volume growth.
The company's stock rose as much as 3.2 per cent during the day to ₹6,029.5 per share, the biggest intraday rise since November 17 last year. The stock pared gains to trade 2 per cent higher at ₹5,956.5 apiece, compared to a 0.42 per cent advance in Nifty 50 as of 10:45 AM.
Shares of the company rose for the fourth straight session and currently trade at 1.8 times the average 30-day trading volume, according to Bloomberg. The counter has risen 38 per cent this year, compared to a 10.5 per cent advance in the benchmark Nifty 50. Hero MotoCorp has a total market capitalisation of ₹1.19 trillion.
Hero MotoCorp December auto sales
Hero MotoCorp reported a dispatch growth of 40 per cent in December 2025, with volumes at 456,479 units, compared with 324,906 units in the same month last year, according to an exchange filing.
The company also recorded 291,732 VAHAN registrations during the month, reflecting demand driven by festive momentum, new product launches, and strong performance across its internal combustion engine (ICE) and electric vehicle (EV) scooter portfolios. The company said its global business also witnessed strong traction, contributing to growth across key markets.
Building on its highest-ever festive season, Hero MotoCorp reported a strong performance in the third quarter of FY26, posting year-on-year (Y-o-Y) growth in both motorcycles and scooters. The quarter’s performance was led by new model launches across portfolios, the company said.
The ICE scooter segment recorded a sharp 45 per cent growth during the quarter, driven by models such as Destini 110, Destini 125, Xoom 125, and Xoom 160. During the quarter, the company sustained positive momentum in its international operations, with exports rising 41 per cent Y-o-Y, supported by new market entries and portfolio expansion, the company said.
Analysts on December auto sales
The April-August 2025 period marked a phase when the auto sector was weighed down by a high cost structure, according to Antique Stock Broking. The brokerage expects a 5-7 quarter demand upcycle following the GST rationalisation on September 22, with strong Y-o-Y industry volume growth sustaining through calendar year 2026 before normalising over calendar years 2027-28.
Antique noted that while auto stocks have seen a recent uptick, its preferred medium-term picks, given a favourable risk-reward profile, are Maruti Suzuki India and Bajaj Auto.
Following the GST rationalization, demand has picked up across segments and seems to have remained intact even after the festive season, Motilal Oswal said in a report. "A notable trend is that entry-level vehicles, both 2Ws and PVs, are seeing a marked pickup in demand."
The brokerage has a 'Buy' rating on the stock with a target price of ₹6,827 per share, an upside of 16 per cent from previous close. =======
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