Stories
Hero Motors Targets Margin Boost and Profitable Alloys Business in FY27
C
CNBC TV18•14-10-2026, 13:01
Hero Motors Targets Margin Boost and Profitable Alloys Business in FY27
- •Hero Motors expects margins to improve in coming quarters driven by a turnaround in its alloys and metallics business and growth in powertrain solutions.
- •The company is targeting revenue growth of 20-25% in FY27, with margins potentially reaching 14-15% by the end of the financial year.
- •Electric vehicles accounted for 22% of the powertrain solutions business in Q1FY27 and are projected to grow to 40-45% over the longer term.
- •Proceeds from the recent IPO will help reduce loans and generate interest income, providing an estimated annual benefit of ₹40-45 crore.
Key Questions Answered
Hero Motors is targeting revenue growth of 20-25% in FY27, with profit margins potentially reaching 14-15% by the end of the financial year.
The company plans to utilize proceeds from its ₹600 crore primary fundraise through its IPO to reduce loans and generate interest income, providing an annual benefit of ₹40-45 crore.
Hero Motors expects electric vehicles to grow from accounting for 22% of its powertrain solutions business in Q1FY27 to roughly 40-45% over the longer term.
