Hero MotoCorp rides on Ather IPO to log 65% surge in Q1 net profit

On a standalone basis, the net profit of India's largest two-wheeler maker remained flat at Rs 1,125.7 crore in the first quarter of the current financial year

The consolidated net profit of Hero MotoCorp increased by 65.2 per cent year-on-year (Y-o-Y) to ₹1,705.6 crore in the first quarter of 2025-26 (Q1FY26), driven by the listing of its associate company Ather Energy, which led Hero to a one-time gain of ₹722.18 crore.

 

On a standalone basis, the net profit of India’s largest two-wheeler maker remained flat at ₹1,125.7 crore in Q1FY26. The standalone net profit was ₹1,122.6 crore in Q1FY25.

 

“During the quarter, associate ... company Ather Energy Limited (formerly known as Ather Energy Private Limited), successfully completed its initial public offering (IPO) of equity shares,” Hero said in a release.

 

“Following the IPO, the equity shares were listed on the National Stock Exchange (NSE) and BSE. During the quarter, share in net profit/(loss) of associates includes gain of ₹722.18 crore on dilution of the company’s share of investment in associates on account of public issue and private placement,” it added.

According to the latest filing of electric two-wheeler maker Ather Energy, Hero MotoCorp’s share in that company stands at about 29.6 per cent. 

 

Hero’s standalone profit remained flat in the first quarter amid a drop in sales of its two-wheelers. Hero sold 1.535 million units in the first quarter of last financial year. The company sold just 1.367 million units in the first quarter of the current financial year.

 

In a statement, Vivek Anand, Chief Financial Officer, Hero MotoCorp, said, “Our profitability and margins remained resilient, supported by strong demand for our entry & deluxe motorcycles and 125cc scooter segments. We are witnessing good traction in our electric mobility business (VIDA), and global operations also remained ahead of industry, reflecting the strength of our brand in international markets.” 

 

“With favourable customer sentiment, upcoming festive season and a robust pipeline of new product launches, we are confident of sustaining and driving growth in the coming quarters,” he added.