Hero Motors Shares Jump Over 8% As Q2 Profit Zooms 115%

Hero Motors' shares surged over 8% in early trading on Wednesday after the automotive components company announced a sharp increase in Q2 profits and a plan to boost its stake in UK-based Hewland Engineering. The stock reached a high of Rs 163.70 during the morning session, marking an 8% increase for the day. Since its debut on the stock market in late September, Hero Motors' shares have risen roughly 66%, bringing the company's market capitalization to about Rs 7,500 crore.

The company's Q2 earnings report showed a remarkable 115.6% year-on-year jump in consolidated net profit to Rs10.2 crore for the quarter ending September 2026. This compares to a profit of Rs4.73 crore in the same period last year. Revenue from operations grew by 24.9% to Rs319.3 crore, up from Rs255.7 crore a year earlier. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 92% to Rs35.9 crore, compared to Rs18.7 crore in the prior year.

The EBITDA margin expanded by approximately 400 basis points to 11.3%, up from 7.3% in the previous quarter.

The significant profit increase was driven by stronger operating profitability and revenue growth, reflecting the company's expanding presence in markets across India, Europe, the US, and the Association of Southeast Asian Nations (ASEAN). Hero Motors specializes in designing and manufacturing powertrain solutions for a wide range of vehicles, including two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.

Its customers include renowned brands such as BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV, and HWA. The company expects to complete its acquisition of Hewland Engineering within six months, acquiring an additional 39% stake for around £0.60 million in cash. This move will increase the company's ownership in Hewland Engineering from 51% to 90%, without requiring any regulatory approvals.