Hero Motors Limited
PROSPECTUS · filed 21 Sept 2026
Hero Motors Limited manufactures e-bikes and two wheelers, generating Rs 1,188.35 crore in revenue with a 5.66% CAGR and a net profit of Rs 41.17 crore, while the offer comprises a fresh issue of Rs 600 crore with no offer for sale. The company faces high risks due to significant dependence on the European market and the e-bike and two wheeler industries, alongside medium risks from high raw material costs and supplier concentration.
What stands out
Risk factor. Revenue from operations is significantly dependent on the European market, contributing 33.59%, 28.45% and 29.33% of revenue in Fiscal 2026, 2025 and 2024 respectively.
Risk factor. The business is dependent on the performance of the e-bikes and two wheelers industries, both in India and overseas, with sales directly dependent on the production levels of these industries.
Risk factor. The business depends on a limited set of suppliers for critical raw materials, with no definitive supply agreements with all suppliers, and relies on purchase orders to customize specifications.
Primarily fresh capital. 100% of the offer is fresh issue, so most proceeds fund the company.
Low leverage. Debt-to-equity of 0.36x.
How the offer is structured
Fresh issue
₹600 Cr
New capital into the company
OFS share
0%
- 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
0.36
P/E at upper band
73.68
Only in a priced RHP
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 |
Risks the company discloses
Revenue from operations is significantly dependent on the European market, contributing 33.59%, 28.45% and 29.33% of revenue in Fiscal 2026, 2025 and 2024 respectively.(Geographic Concentration)
The business is dependent on the performance of the e-bikes and two wheelers industries, both in India and overseas, with sales directly dependent on the production levels of these industries.(Industry Dependence)
The business depends on a limited set of suppliers for critical raw materials, with no definitive supply agreements with all suppliers, and relies on purchase orders to customize specifications.(Supply Chain Risk)
Cost of raw materials consumed as a percentage of total expenses was 54.99%, 56.64% and 60.17% in Fiscal 2026, 2025 and 2024 respectively.(Cost Structure)
The top 5 suppliers contributed 12.23%, 13.09% and 13.15% of total raw material expenses in Fiscal 2026, 2025 and 2024 respectively.(Supplier Concentration)
The top 10 suppliers contributed 20.85%, 21.82% and 21.52% of total raw material expenses in Fiscal 2026, 2025 and 2024 respectively.(Supplier Concentration)
The business is exposed to fluctuations in the performance of the motorsport and performance automotive industry, which contributed 21.35%, 26.03% and 27.52% of revenue in Fiscal 2026, 2025 and 2024 respectively.(Industry Dependence)
The business is exposed to fluctuations in the performance of the 'Others' end-use category, which contributed 24.73%, 23.60% and 21.36% of revenue in Fiscal 2026, 2025 and 2024 respectively.(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.