Hero Motocorp Gains On Q1 Print, But Technicals Suggest Hurdles Ahead: SEBI Analysts

Hero MotoCorp shares rose 1.6% Thursday following its first quarter (Q1) results, which showed stable margins and headline profit growth. 

SEBI-registered analysts Rajneesh Sharma and Saurabh Sahu said the core performance remained flat once a one-time gain was stripped out, and technical charts suggest strong resistance ahead.

Q1 Earnings Review

The two-wheeler maker reported consolidated revenue of ₹9,728 crore for the June quarter, up 4% year-on-year but down 3% sequentially. Profit after tax came in at ₹1,126 crore, flat from ₹1,123 crore a year earlier. A one-time gain of ₹722 crore from a stake dilution in Ather Energy was excluded from the PAT figure.

EBITDA stood at ₹1,413 crore, with margins holding steady at 14.5% compared to 14.3% a year ago. The company sold 13.67 lakh units during the quarter.

Hero also introduced new products in the 100cc category, including the HF Deluxe Pro, to drive recovery in the domestic market.

Sahu described the quarter as reflecting“weak operational performance,” saying the headline PAT growth was largely due to the one-time Ather Energy gain. 

On a standalone basis, revenue dropped 5.6% year-on-year to ₹9,579 crore, while volumes fell 11%. EBITDA margin remained flat at 14.4%. Without the one-time gain, he said profit was effectively flat.

Sahu noted that the volume decline in a recovering demand environment was a red flag, and despite stable margins, there was no real profit growth. 

He also flagged that the temporary production pause during the quarter affected dispatches, although those operations have now normalized.

On the outlook, Hero's CFO Vivek Anand said the company was optimistic about the festive season, with EV expansion and global relaunches expected to contribute to topline. 

“Margins held firm, electric mobility is gaining traction, and global performance is outpacing the industry,” he said.

Technical Breakdown

Sharma said fundamentals were stabilizing, but the technical picture suggested caution. 

He noted that after sliding from ₹6,400, the stock showed signs of bottoming out, supported by a bullish relative strength index (RSI) divergence and a strong weekly candle that rose 3.79%.

However, Sharma flagged key resistance zones at ₹4,582, ₹5,047, and ₹5,200, and said price was now testing the underside of a former rising channel, which could reject further upside without strong follow-through volume. 

He maintained a cautiously bullish near-term view based on structure and momentum but advised traders to watch closely.

On Stocktwits, retail sentiment for Hero MotoCorp was 'bullish' amid 'high' message volume.

Hero MotoCorp's stock has risen 8.7% so far in 2025.

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