Here's why Hero MotoCorp shares fell over 5% from the highs after the earnings call

Shares of Hero MotoCorp

Ltd. declined over 5% from the day's high on Wednesday following its earnings call, even as the company reported a strong March quarter performance.

During the call, management indicated that it is entering FY27 with healthier channel inventory levels and has gained market share across key segments, including 100cc and 110cc motorcycles, ICE and EV scooters, as well as the 400–500cc category.



The company plans to sharpen its focus on new products, with multiple launches lined up for FY27.

Industry growth is expected to remain in the high single-digit range, with scooters likely to outpace motorcycles.

Hero MotoCorp reiterated its commitment to maintaining EBITDA margins in the 14-16% band, despite a volatile cost environment.

It has already implemented a 2% price hike, while commodity cost inflation remains in the high single digits. Management maintained that margin pressures from input costs are temporary and is taking steps to safeguard profitability.

For Q4FY26, the company delivered an all-round beat. Revenue rose 29% YoY to ₹12,797 crore, while EBITDA increased 31% to ₹1,856 crore.

EBITDA margin improved slightly to 14.5% from 14.2% last year, although gross margins declined by 300 basis points YoY and 100 basis points sequentially due to higher input costs.