Hero MotoCorp gains 3%, nears 52-week high as 2W stock bucks trend

Hero MotoCorp stock in demand; Low inflation, coupled with significant Reserve Bank of India rate cuts and favorable monsoon should expected to lift demand sentiment as the year progresses.

Share price Hero MotoCorp today

 

Shares of Hero MotoCorp gained 3 per cent to ₹5,582 on the BSE in Friday’s intra-day, after the world’s largest manufacturer of motorcycles and scooters, recorded a robust start to the festive season, dispatching 687,220 units in September 2025, supported by rural recovery.

 

The stock price of the two-wheeler (2W) company was quoting close to its 52-week high level of ₹5,749.55. It had hit a record high level of ₹6,245 on September 24, 2024.

 

At 01:45 PM; Hero MotoCorp was trading 2 per cent higher at ₹5,537.80 on the BSE. In comparison, the BSE Sensex was up 0.07 per cent, while the BSE Auto index was down 0.18 per cent. Eicher Motors and TVS Motor Company from 2W space were trading lower by up to 1 per cent.

 

 

Hero MotoCorp's September sales

 

The world's largest two-wheeler manufacturer reported an 8 per cent year-on-year (Y-o-Y) increase in sales at 687,220 units in September 2025, compared with 637,050 units in September 2024, according to an exchange filing.

 

In the domestic market, sales increased 5 per cent to 647,582 units from 616,706 units in the year-ago period. The company's exports almost doubled to 39,638 units, up 94.8 per cent from 20,344 units last year.

 

Hero MotoCorp became the first Indian company to surpass the 125 million cumulative two-wheeler production mark. The strong monthly dispatches contributed to a steady growth of 11.3 per cent through Q2 FY26 compared to previous year, driven by the strategic diversification of the product portfolio into newer segments since the beginning of the financial year.

 

The combination of the festive spirit and the new GST benefits has led to a sharp rise in bookings and enquiries. Showroom and dealership footfalls have more-than-doubled compared to the festive season last year, with significant traction observed in the high-volume commuter segment, Hero MotoCorp said in an exchange filing.

 

Hero MotoCorp further said the company is fully geared with its extensive portfolio, including 12 new or refreshed products this year, and an expanded retail network to capitalize on the sustained positive consumer sentiment throughout the rest of the festive season.

 

Brokerages view on Hero MotoCorp/2W sector

 

In September 2025, OEMs in the 2W segment recorded strong growth, supported by robust export performance and domestic recovery driven by the festive demand and GST rate cuts. The domestic market saw improvement, with dealers stocking up for the festive season, aided by the GST changes. 

 

Multi-year low inflation recorded in June, coupled with significant Reserve Bank of India (RBI) rate cuts and favorable monsoon should help in demand sentiment as the year progresses. Riding on this positive optimism, Hero MotoCorp’s management expects two-wheeler demand to continue its upward trajectory as we enter the upcoming festive season.

 

With recovery in domestic volumes, 2W industry is well poised to record high single-digit volume growth in FY26E. Management commentary was also positive around retails for the festive season, ICICI Securities said in a note.

 

Going ahead, potential upside triggers for domestic demand include the government’s push to consumption (Income Tax relief/ GST reduction), festive demand, a rural uptick, and new model launches. In the long term, Axis Securities said they prefer TVS Motors, Hero MotoCorp, and Bajaj Auto in 2Ws.

 

Looking ahead, reduction in price due to GST rationalisation and company specific offers, coupled with the ongoing festive season, are expected to provide a meaningful boost, particularly in the entry-level domestic PVs and 2Ws, said analysts at JM Financial Institutional Securities.