Hero Motors Ltd.
RHP · filed 16 Sept 2026
Hero Motors Ltd. is a manufacturer of e-bikes and two wheelers with a revenue of Rs 1,188.35 crore and a profit of Rs 41.17 crore in the latest fiscal year, showing a revenue CAGR of 5.66%. The company's offer is structured as a fresh issue of shares, and it is not a loss-making entity. The business is materially exposed to risks including a high concentration of revenue (33.59%) from Europe, dependence on the performance of the e-bikes and two wheelers industries, and reliance on a limited set of suppliers without definitive agreements.
What stands out
Risk factor. A significant portion of revenue (33.59% in Fiscal 2026) is generated from operations in Europe, which is subject to adverse events such as natural disasters, fires, epidemics, pandemics, acts of war, terrorist attacks, and civil unrest.
Risk factor. The business is dependent on the performance of the e-bikes and two wheelers industries, both in India and overseas, and is exposed to fluctuations in production levels, inventory levels, and factors beyond control such as government policies, consumer demand, fuel prices, and supply chain disruptio
Risk factor. The company depends on a limited set of suppliers for critical raw materials and does not have definitive supply agreements with all suppliers, exposing the business to the risk of production disruption, delays, and adverse impacts on operations and financials.
How the offer is structured
- Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by our Company₹190 Cr
- Capital expenditure of our Company through purchase of equipment required for expansion in capacity of our Gautam Buddha Nagar, Uttar Pradesh facility₹200 Cr
- 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 | ₹17.0 Cr | ₹375 Cr | |
| 2025 | ₹1.09k Cr | ₹32.8 Cr | ₹426 Cr | |
| 2026 | ₹1.19k Cr | ₹41.2 Cr | ₹481 Cr |
Promoters, litigation & related parties
Related-party
0.7%
Share of revenue
Risks the company discloses
A significant portion of revenue (33.59% in Fiscal 2026) is generated from operations in Europe, which is subject to adverse events such as natural disasters, fires, epidemics, pandemics, acts of war, terrorist attacks, and civil unrest.(Geographic Concentration)
The business is dependent on the performance of the e-bikes and two wheelers industries, both in India and overseas, and is exposed to fluctuations in production levels, inventory levels, and factors beyond control such as government policies, consumer demand, fuel prices, and supply chain disruptions.(Industry Dependence)
The company depends on a limited set of suppliers for critical raw materials and does not have definitive supply agreements with all suppliers, exposing the business to the risk of production disruption, delays, and adverse impacts on operations and financials.(Supply Chain)
The company does not have definitive supply agreements with all suppliers, relying instead on purchase orders to customize specifications and maintain cost and quality, which exposes the business to the risk of suppliers not performing obligations in a timely manner or at all.(Supply Chain)
Selling products in international markets and maintaining operations requires significant coordination, capital, resources, and compliance with legal and regulatory regimes, and the company cannot assure that it will effectively manage global operations or avoid unanticipated costs or legal actions.(International Operations)
The company is exposed to fluctuations in the performance of the motorsport and performance automotive industry, which accounted for 21.35% of revenue in Fiscal 2026.(Industry Dependence)
The company is exposed to fluctuations in the performance of the 'Others' end-use category (primarily other automotive components and aerospace), which accounted for 24.73% of revenue in Fiscal 2026.(Industry Dependence)
The company is exposed to fluctuations in the performance of the e-bikes industry, which accounted for 12.92% of revenue in Fiscal 2026.(Industry Dependence)
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.