HEROMOTORS · Automobile Two & Three Wheelers · INE012G01022
This company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Hero Motors Limited is a global automotive technology company specializing in engineered powertrain solutions and alloy and metallic components. Its product portfolio comprises Powertrain Solutions—including Gears & Transmissions (G&T) and Bike Powertrains (BPT) such as continuously variable transmission (CVT) hubs, electric motors, and drive units for e-bikes—and Alloys & Metallics (A&M) providing sheet metal and tubular assemblies. The company serves automotive OEMs, e-bike manufacturers, and motorsport participants across two-wheelers, passenger cars, off-road vehicles, and aerospace. Key customers include BMW, Ducati, Hero MotoCorp, enviolo, and River Mobility, with the top 10 customers contributing 72.89% of FY26 revenue. Geographically, Hero Motors serves clients across 23 countries, generating 58.64% of FY26 revenue from India (₹ 696.82 crore) and 41.36% from international markets (₹ 491.53 crore), led by Europe at 33.59%. Its operational footprint encompasses six manufacturing and assembly facilities across India (Gautam Buddha Nagar and Ludhiana), Thailand (Samut Prakan), and the United Kingdom (Maidenhead and Southam). Supply chain procurement relies primarily on domestic vendors, who supplied 93.92% of raw materials in FY26. On a consolidated scale, the company generated ₹ 1,188.35 crore in FY26 revenue from operations.
First-mover advantage as the sole Indian manufacturer exporting CVT hubs and integrated electric powertrain products for e-bikes globally, proprietary JV technology partnerships with Yamaha (HYM) and Hewland Engineering, long-term OEM relationships, and geographically diversified manufacturing footprint across India, UK, and Thailand.
Hero Motors Limited is an India-based automotive technology company engaged in designing, manufacturing, and supplying engineered powertrain solutions and alloys and metallics components. The company caters to global OEMs across electric bikes, motorcycles, performance automotive, and specialty vehicle sectors in India, Europe, the United States, and ASEAN regions.
Source: p.264, p.265, p.275
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Alloys and Metallics (A&M) | 46.33 | p.272 |
| Gears and Transmission (G&T) | 41.14 | p.272 |
| Bike Powertrain (BPT) | 12.53 | p.272 |
The global market for gears and transmissions is projected to expand from ₹ 340,000-350,000 crore in 2025 to ₹ 485,000-495,000 crore by 2031 at a CAGR of 6% to 8%, driven by vehicle electrification, premiumization in two-wheelers, and demand for high-performance powertrains. Concurrently, the global e-bike market is forecasted to grow from 8.24 million units in 2024 to 12.5-14.5 million units by 2031 at a 6% to 9% CAGR, boosting addressable demand for bike powertrain solutions to ₹ 88,000-92,200 crore by 2031. Hero Motors Limited is strategically positioned as a leading Indian powertrain solutions provider, leveraging its precision manufacturing, EV-neutral portfolio, and global OEM partnerships across India, Europe, and ASEAN.
Sector slug: automotive-powertrain-components
Source: p.262, p.263
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| CIE Automotive India Limited | 17.68 | 13.18 | p.128 | ||
| Endurance Technologies Limited | 40.84 | 15.29 | p.128 | ||
| Sona BLW Precision Forgings Limited | 76.5 | 10.77 | p.128 | ||
| UNO Minda Limited | 59.84 | 19.59 | p.128 | ||
| Varroc Engineering Limited | 56.15 | 18.7 | p.128 |
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| consolidated | FY26 | 47.25 | 41.17 | 3.46% | 1188.35 | yes | -61.8 |
| consolidated | FY25 | 20.33 | 32.8 | 3.01% | 1089.59 | yes | 53.69 |
| consolidated | FY24 | 12.89 | 17.04 | 1.6% | 1064.39 | yes | -20.36 |
The measures this sector is actually judged on, as disclosed in the document. No feed supplies these.
Written before listing, answered from the document itself.
How will the ₹ 200.00 crore capital expenditure allocation at the Gautam Buddha Nagar facility impact operational capacity?
The capex will fund new equipment for precision gear, transmission, and e-drive component manufacturing lines at GB Nagar, expanding capacity where current utilization is high (88.25% for powertrain) to meet confirmed OEM order programs.
p.54, p.114, p.115
What steps is management taking to address customer concentration, given that top 10 customers account for 72.89% of revenue?
Hero Motors is expanding its program pipeline across 11 new OEM awards commencing between 2025 and 2027 across Europe, India, and ASEAN, while scaling up private label accessories and micro-mobility products under the ESYNC brand.
p.9, p.196, p.294
Why did consolidated net profit margins remain at ~3.46% in FY26 despite gross margins of ~41.69%?
Net margins are constrained by fixed overheads, depreciation (₹ 45.94 crore), finance costs (₹ 40.84 crore), and operational losses across ramping subsidiaries like Hero Thai and HYM. Debt reduction via IPO proceeds and scaling volume at overseas plants are expected to expand net margins.
p.348, p.350, p.537, p.544
What is the status and operational implication of the withdrawal clauses triggered under the HYM Joint Venture with Yamaha?
Accumulated losses at HYM triggered exit clauses under the JV agreement. However, both Hero Motors (90%) and Yamaha (10%) have executed written confirmations of continued financial and operational support for at least 12 months, ensuring uninterrupted production of hub motors.
p.293
What the issue priced at, on the figures in the document.
Pe basis: Based on FY 2026 basic EPS of ₹ 1.15 and diluted EPS of ₹ 1.14. Price Band is [●] to [●].
Peers comprise listed automotive component and powertrain manufacturers including CIE Automotive India, Endurance Tech, Sona BLW, UNO Minda, and Varroc Engineering.
Source: p.126, p.128
How the book filled. A category that bid far above the rest is a different signal from a uniformly covered issue.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 2024-05-08 | Amit Gupta | 2000000 | 10 | ESOP 2022 | p.85, p.86, p.106 |
| 2024-07-16 | Amit Gupta | 1806111 | 10 | ESOP 2022 | p.85, p.86, p.106 |
| 2026-05-27 | Amit Gupta to Gulshan Kumar Agarwal | 50000 | 90 | Secondary Transfer | p.85, p.86, p.106 |
| 2026-05-29 | Amit Gupta | 951528 | 10 | ESOP 2022 | p.85, p.86, p.106 |
| 2026-09-04 | South Asia Growth Invest LLC & South Asia EBT Trust | 20971941 | 69.14 | Conversion of CCPS | p.85, p.86, p.106 |
| 2026-09-04 | Amit Gupta & Others | 2527517 | 69.14 | ESOP 2022 | p.85, p.86, p.106 |
Ceo: Amit Gupta
1 criminal complaint by UPPCB against Pankaj Munjal; 2 material civil litigations against Pankaj Munjal regarding trademark and family settlement disputes; 1 MCGM notice involving Charu Munjal; Personal guarantees provided by Pankaj Munjal for subsidiary facilities.
Auditor name: Deloitte Haskins & Sells LLP, Chartered Accountants
Skin in game: Promoters hold 73.46% (284,172,126 Equity Shares) of pre-issue paid-up equity share capital.
Auditor rpt flags: None; unmodified audit opinion on Restated Consolidated Financial Information.
Auditor changed last 3y: No; Deloitte Haskins & Sells LLP has served as statutory auditor throughout the three-year reporting period.
Source: p.2, p.105, p.315, p.480
Transactions with promoters, directors and their entities, as disclosed.
| Counterparty | Amount cr | Nature | Relationship | Core function | Source |
|---|---|---|---|---|---|
| Hero Cycles Limited | 30.68 | Job work charges, Sale of goods, Purchase of land/PPE, Lease rentals | Promoter Group Entity / Group Company | Sub-contracting, facility leases, and property transactions | p.98, p.416, p.417 |
| HMC E-Valley Private Limited | 34.98 | Sale of goods & Lease liability paid for ROU assets | Group Company | Industrial park facility lease and component sales | p.99, p.100, p.416 |
| High Rise Industries | 15.31 | Purchase of goods | Enterprise controlled by KMP/Promoter relative | Component procurement | p.101, p.416 |
| Munjal Kiriu Industries Private Limited | 22.88 | Purchase & Sale of goods | Group Company | Auto component trading and procurement | p.99, p.416 |
No undisputed statutory dues were outstanding for a period of more than six months as at March 31, 2026. Contingent tax demand of ₹ 0.16 crore for AY 2023-24 under transfer pricing is pending before Commissioner of Income Tax (Appeals).
Defaults disclosed: Yes
Source: p.77, p.444, p.488
A change between the two filings is a disclosure in itself.
Models that need these lines are withheld rather than estimated: two comparable financial years. Nothing on this page is back-solved from a figure the company did not publish.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
The same read, applied to the companies this one competes with.