Hero MotoCorp Can Hero outpace segmental headwinds in FY27?

Research evidence excerpt

Hero MotoCorp Can Hero outpace segmental headwinds in FY27?

J P M O R G A N Asia Pacific Equity Research

12 June 2026

Hero MotoCorp Overweight

HROM.NS, HMCL IN

Can Hero outpace segmental headwinds in FY27? Price (11 Jun 26):Rs 4,836

Price Target (Mar-27):Rs 6,430

We hosted Mr. Vivek Anand, CFO of HMCL, for a fireside chat as part of our J.P. Indian Automobiles, Auto parts and

Morgan India Auto CXO series. The key takeaways were: (1) Domestic 2W Transportation

industry should grow at 7-8% and HMCL should outperform; (2) Industry shift Amyn Pirani AC

towards scooters/EV remains a headwind, but HMCL expects to offset this through (91-22) 6157-3583

disproportionate growth in these segments in FY27; 3) Export growth trends amyn.pirani@jpmorgan.com

should sustain (FY24-26 CAGR was 42%); and 4) Margins could be weak in the Harshit Mittal

near term but gradual price hikes plus PLI benefits in EVs should aid improvement (91-22) 6157-3152

going forward. While HMCL stock is attractively valued (FY28E P/E at 13x), harshit.mittal@jpmorgan.com

J.P. Morgan India Private Limited, J.P. Morgan

investor concerns are centered on their continued market-share loss. The market Tower, Santacruz(E), Mumbai - 400098, SEBI

shift away from motorcycles should continue to be a headwind, but HMCL did Registration: INH000001873, (91-22) 6157-3000.

manage to offset some of this through gains in scooters and EVs in FY26. We need

more of the same in FY27 for a return of investor confidence. Maintain OW.

• HMCL has a two-pronged problem; it is fixing one of them: HMCL has lost

730bps market-share over FY19-25 driven by adverse segment shift as well as

losses across segments. The segment shift headwinds continued in FY26 (-

210bps) but were partly offset by market-share gains (+140bps) within

segments.