Hero MotoCorp shares will be in focus on Friday after the company reported a 12% year-on-year rise in standalone net profit for the December quarter, reaching INR 1,203 crore against INR 1,073 crore a year ago. The figure surpassed Street estimates of INR 1,122 crore.

Revenue from operations rose 5% to INR 10,211 crore from INR 9,723 crore in the same quarter last year, exceeding the ET Now Poll estimate of INR 10,152 crore. The company said both revenue and profit for the first nine months of FY25 were the highest ever.

The earnings before interest, tax, depreciation & amortisation (EBITDA) for Q3 FY2025 stands at INR 1,476 crore, growth of 8%.

Hero MotoCorp Q3 volume

The company's sales volume was reported at 14.64 lakh units of motorcycles and scooters versus 14.60 lakh units Q3 FY’24.

It claimed it gained market share in the 100cc segment through Splendor and in the 125cc segment through Xtreme 125R and Super Splendor. It also reported the highest-ever quarterly retail sales, led by the highest-ever festive retail.

Management take

“As we move into the next fiscal year, the products launched at Bharat Mobility will further strengthen our presence in the premium and scooter segments. The Union Budget 2025's emphasis on tax relief for the middle class, along with continued investment in infrastructure and support for the agricultural sector, is expected to boost consumer confidence and drive demand growth in the auto industry,” Vivek Anand, Chief Financial Officer (CFO) said.

Should you buy, sell, or hold Hero MotoCorp's stock? Here's what analysts say:

Jefferies

Jefferies maintained a 'Buy' rating on Hero MotoCorp with a target price of INR 5,075.

The brokerage noted that the company's Q3 EBITDA and PAT were ahead of estimates, driven by a higher-than-expected average selling price and improved gross margins. Additionally, EBITDA per vehicle saw a slight increase of 1% quarter-on-quarter, reaching a new high.

Citi

Citi maintained a 'Buy' rating on Hero MotoCorp but lowered the target price to INR 5,400 from INR 6,300.

The brokerage highlighted that Q3 results were ahead of estimates, supported by steady margins and a positive outlook for rural demand. However, Citi noted that the competitive landscape remains challenging, and Hero’s market share could continue to face pressure. Additionally, the brokerage cut its volume estimates for the company by 4% over FY25-27.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)