Hero Motors Limited
RHP · filed 10 Sept 2026
Hero Motors Limited is a manufacturer of automotive components and systems, including e-bikes, two-wheelers, and motorsport parts, with a revenue of Rs 1,188.35 crore and a profit after tax of Rs 41.17 crore in the latest fiscal year. The company's financials show a revenue compound annual growth rate of 5.66% and a return on equity of 8.56%. The offer structure consists of a fresh issue of equity shares, and the company faces significant risks related to its high dependence on European operations, industry-specific market volatility, and supply chain concentration.
What stands out
Risk factor. A significant portion of revenue (33.59% in Fiscal 2026) is generated from operations in Europe, exposing the company to adverse events, economic slowdowns, and regulatory changes in that region.
Risk factor. The business is dependent on the performance of specific industries, particularly e-bikes, two wheelers, motorsport, and performance automotive, with sales directly tied to the production levels and inventory of these industries.
Risk factor. The company depends on a limited set of suppliers for critical raw materials, with no definitive supply agreements for all suppliers, posing a risk of production disruption if suppliers fail to perform obligations.
How the offer is structured
- Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by our Company
- Capital expenditure of our Company through purchase of equipment required for expansion in capacity of our Gautam Buddha Nagar, Uttar Pradesh facility
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Restated financials
Revenue
₹1.19k Cr
Latest fiscal year
Profit after tax
₹41.2 Cr
Revenue CAGR
5.7%
Return on equity
8.6%
Debt / equity
0.83
PAT CAGR
55.5%
| Fiscal year | Revenue | EBITDA | PAT | Net worth |
|---|---|---|---|---|
| 2024 | ₹1.06k Cr | ₹24.3 Cr | ₹17.0 Cr | ₹375 Cr |
| 2025 | ₹1.09k Cr | ₹39.1 Cr | ₹32.8 Cr | ₹426 Cr |
| 2026 | ₹1.19k Cr | ₹63.0 Cr | ₹41.2 Cr | ₹481 Cr |
Risks the company discloses
A significant portion of revenue (33.59% in Fiscal 2026) is generated from operations in Europe, exposing the company to adverse events, economic slowdowns, and regulatory changes in that region.(Geographic Concentration)
The business is dependent on the performance of specific industries, particularly e-bikes, two wheelers, motorsport, and performance automotive, with sales directly tied to the production levels and inventory of these industries.(Industry Dependency)
The company depends on a limited set of suppliers for critical raw materials, with no definitive supply agreements for all suppliers, posing a risk of production disruption if suppliers fail to perform obligations.(Supply Chain)
The company relies on a limited number of suppliers, with the top 10 suppliers accounting for 20.85% of total raw material costs in Fiscal 2026, creating a concentration risk.(Supplier Concentration)
Sales are directly dependent on the production levels of the two-wheeler, e-bike, and motorsport industries, which are affected by factors beyond the company's control, such as government policies, consumer demand, fuel prices, and economic conditions.(Market Volatility)
The company does not enter into definite-term agreements with all suppliers, relying instead on purchase orders to customize specifications, which may expose the company to delays or non-performance.(Contractual Risk)
The company's revenue from e-bikes decreased in Fiscal 2024 due to a slowdown in the e-bike market, indicating vulnerability to fluctuations in demand for specific product categories.(Product Category Risk)
Selling products in international markets requires significant coordination, capital, resources, and compliance with legal and regulatory regimes, which may be unfamiliar and could lead to unanticipated costs or legal action.(International Operations)
How this document reads, dimension by dimension
Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.