Synopsis: Hero MotoCorp plunged sharply today after UBS reported a significant decline in market share, from 35% in November to just 19% thus far in December.
The shares of one of the largest motorcycle manufacturers in India are in focus after UBS flagged key risks in its business. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 1,19,761 crore, the shares of Hero MotoCorp Ltd made a day low of Rs 5,964 per share on Tuesday, down 3 percent from its previous day’s closing price of Rs 6,163 per share. Over the past five years, the stock has delivered a return of 88 percent, underperforming NIFTY 50’s positive return of 91 percent.
Analyst Comments
Hero MotoCorp shares declined on Tuesday following a bearish report by a leading global brokerage, UBS, that the company is losing market share. In November, Hero had a 35 percent share, which has gone down to only 19 percent so far in December. By the last 14 days, the share is just 29 percent, which is still lower than previous. Though Hero did good sales in November, its aggregate sales are still down year-on-year. As a result of this abrupt drop, investors have become cautious.
Last month, another brokerage, JPMorgan, had upgraded Hero to “Overweight” and increased its price target to Rs 6,850 per share, signalling a further upside of 11 percent from its previous day’s close. JP Morgan forecasted a better performance for Hero due to new bike launches, more efficient inventory management, and stronger demand post-GST cuts for budget bike buyers.
Financial and Other Highlights
Hero MotoCorp Ltd reported a revenue from operations of Rs 12,218 crore in Q2 FY26, a growth of 17 percent as compared to Rs 10,483 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 26 percent from Rs 9,728 crore.
Regarding its profitability, it reported a net profit of Rs 1,321 crore in Q2 FY26, a robust growth of 24 percent as compared to Rs 1,066 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 23 percent from Rs 1,706 crore.
Hero MotoCorp has reported a 31 per cent year-on-year (Y-o-Y) growth in total sales to 6.04 lakh units in November 2025, compared to 4.60 lakh units in the same month last year. The company’s domestic sales grew 30 percent to 5.7 lakh units from 4.40 lakh units, while exports jumped by a staggering 70 percent to 33,970 units, up from 20,028 units a year ago.
Hero MotoCorp is a multinational corporation with headquarters in India, and is the largest two-wheeler manufacturer in the world by volume. Since its founding in 1984, the company has expanded to become a multinational corporation with over 125 million riders and a presence in 48 countries. With an emphasis on innovation, sustainability, and growing its global presence, they manufacture a variety of motorcycles and scooters, including new endeavours in electric mobility under the VIDA brand.
It has established industry standards in every market segment and provides a broad range of two-wheeler products, such as motorcycles and scooters. Hero MotoCorp’s product line includes popular models like Karizma, Hunk, CBZ Xtreme, Super Splendour, Glamour Fi, Splendor+, Splendour NXG, Passion Plus, and more, that have completely changed the Indian two-wheeler market.
Written by Satyajeet Mukherjee
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