15 Days Price Change
WEBSITE Industry: Automobile Two & Three Wheelers Inc. Year: 1998
| FY22 | FY23 | FY24 | FY25 | YOY % FY25 | CAGR % FY25 | |
|---|---|---|---|---|---|---|
| Net Sales | 904 | 1055.3 | 1064.4 | 1089.6 | 2.4 | 6.4 |
| Other Income | 6.4 | 14 | 19 | 21.6 | 13.7 | 50 |
| Total Income | 910.3 | 1069.3 | 1083.4 | 1111.2 | 2.6 | 6.9 |
| Operating Profit | 166.2 | 103.1 | 82.8 | 110.1 | 33 | -12.8 |
| Intrest | 14.3 | 25.6 | 29.9 | 33.1 | 10.7 | 32.3 |
| Depreciation | 15.9 | 17.2 | 28.6 | 37.9 | 32.5 | 33.6 |
| Total Expenditure | 840.1 | 1009.1 | 1059.1 | 1072.2 | 1.2 | 8.5 |
| Exceptional Income | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 136 | 60.2 | 24.3 | 39.1 | 60.9 | -34 |
| TAX | 38.1 | 11.6 | 7.3 | 6.3 | -13.7 | -45.1 |
| PAT | 97.9 | 48.6 | 17 | 32.8 | 92.9 | -30.5 |
| EPS | 2.58 | 1.28 | 0.45 | 0.86 | 91.1 |
| FY22 | FY23 | FY24 | FY25 | YOY % FY25 | CAGR % FY25 | |
|---|---|---|---|---|---|---|
| Shareholder Funds | 156.9 | 355.6 | 374.8 | 426 | 13.7 | 39.5 |
| Total Debt | 250 | 242.2 | 304 | 407.6 | 34.1 | 17.7 |
| Current Liabilities | 434.9 | 426.1 | 491 | 515.5 | 5 | 5.8 |
| Non Current Liabilities | 81.4 | 94.1 | 194 | 223.1 | 15 | 39.9 |
| Total Liabilities | 673.2 | 875.8 | 1059.8 | 1164.6 | 9.9 | 20 |
| Current Assets | 473.2 | 529.6 | 536.1 | 515.5 | -3.8 | 2.9 |
| Non Current Assets | 200 | 346.2 | 523.8 | 649.1 | 23.9 | 48.1 |
| Total Assets | 673.2 | 875.8 | 1059.8 | 1164.6 | 9.9 | 20 |
| FY22 | FY23 | FY24 | FY25 | YOY % FY25 | CAGR % FY25 | |
|---|---|---|---|---|---|---|
| Cash Flow From Operating Activities | 60.3 | 72.4 | 128.5 | 43.3 | -66.3 | -10.5 |
| Cash Flow From Investing Activities | 29.8 | -223.2 | -76.9 | -134.1 | 74.4 | NAN |
| Cash Flow From Financing Activities | -55.1 | 104.6 | -16.9 | 57.6 | -440.8 | NAN |
| Free Cash Flow | 0 | 0 | 0 | 0 | 0 | 0 |
| FY22 | FY23 | FY24 | FY25 | YOY % FY25 | CAGR % FY25 | |
|---|---|---|---|---|---|---|
| ROE(%) | 62.4 | 13.7 | 4.5 | 7.7 | 71.1 | -50.2 |
| ROCE(%) | 40.8 | 17.2 | 12.2 | 13.2 | 8.2 | -31.4 |
| ROA(%) | 14.5 | 5.6 | 1.6 | 2.8 | 75 | -42.2 |
| Current Ratios(x) | 1.1 | 1.2 | 1.1 | 1 | -9.1 | -3.1 |
| Type | Period / Date | Document |
|---|---|---|
| Annual Report | 2023-03 |
| Type | Period / Date | Document |
|---|
| Type | Period / Date | Document |
|---|
| Type | Period / Date | Document |
|---|---|---|
| Research Report | 2026-03 | |
| Research Report | 2026-03 |
Leading Indian auto component manufacturer with a strong legacy in powertrain and drivetrain solutions.
Consistent top-line growth from ₹914 Cr (FY22) to ₹1,090 Cr (FY25), reflecting steady OEM demand.
Aggressive capacity expansion with PPE rising 3x in 3 years, positioning for future growth.
Margins compressed in recent years due to rising employee and finance costs, but profit recovery visible in FY25.
Balance sheet strengthening with rising equity base and expanding asset footprint.
Hero Motors Limited is a diversified automotive component manufacturer with a strong presence in powertrain and drivetrain systems for two-wheelers, three-wheelers, and passenger vehicles. The company is part of the Hero Group ecosystem and supplies to leading OEMs across India and select global markets.
Over the last four years, Hero Motors has transitioned from a steady-state manufacturer into a growth-focused platform, marked by heavy investments in plant & machinery, technology upgrades, and new product lines aligned with electric mobility and lightweight engineering.
Its expanding footprint, coupled with rising OEM outsourcing and localisation trends, positions the company as a structural beneficiary of India’s long-term auto and EV growth cycle.
End-to-end manufacturer of powertrain and drivetrain components
Strong OEM-focused B2B revenue model
Long-term supply contracts with leading auto and EV OEMs
Revenue streams from:
Auto components
Precision engineering
New-age EV components
Asset-heavy model with rising capital intensity to support scale
1. EV Transition Tailwind
Rising demand for EV powertrain and lightweight components
Opportunity to become a preferred Tier-1 supplier to EV OEMs
2. Capacity Expansion Payoff
3x increase in fixed assets over 3 years
New plants and tooling expected to drive operating leverage post FY26
3. OEM Outsourcing Trend
Increasing localisation and vendor consolidation by auto OEMs
Strong supplier positioning within Hero Group ecosystem
4. Product Mix Upgrade
Shift toward higher-margin precision components
| Category | Approx. Stake |
|---|---|
| Promoters | ~74% |
| Promoter Group | ~11% |
| Total Promoter + Group | ~85.25% |
| Financial Investor (South Asia Growth Invest, LLC) | ~12.20% |
| Others / Minor Shareholders | ~2.55% |
| Total | 100% |
Promoters and Promoter Group will continue to retain majority control post-IPO.
IPO includes an Offer for Sale (OFS) primarily by:
O P Munjal Holdings (Promoter)
Hero Cycles Limited (Promoter Group)
Bhagyoday Investments Pvt Ltd (Promoter Group)
Established auto component manufacturer with OEM relationships
Strong asset base built for future growth
Positive operating cash flows
Part of a reputed industrial group
Increasing scale and product diversification
Weaknesses
Margin volatility due to rising cost structure
Elevated debt levels during capex phase
Profit sensitivity to raw material and wage inflation
Moderate revenue growth relative to asset expansion
Opportunities
EV component demand surge
Export market expansion
Operating leverage as new capacities stabilise
Value migration to higher-tech components
Strategic partnerships with global OEMs
Threats
Cyclicality in the auto sector
OEM pricing pressure
Delay in EV adoption timelines
Rising interest costs
Execution risk in capex-heavy expansion
Capex Cycle Nearing Maturity: Heavy investments already done; earnings leverage likely from FY26 onward.
EV Optionality: Positioned to benefit from India’s EV transition without being a pure-play risk.
Asset-Backed Growth Story: Strong tangible asset base supporting long-term scalability.
Balance Sheet Visibility: Manageable leverage with rising equity support.
Profit Recovery Signals: FY25 turnaround in PAT suggests bottoming out of margins.
| Particulars | 31-03-2022 | 31-03-2023 | 31-03-2024 | 31-03-2025 |
| Assets | ||||
| 1. Non-current assets | ||||
| (a) Property, plant and equipment | 164.257 | 257.134 | 360.306 | 495.36 |
| (b) Right-of-use assets | 0 | 18.699 | 35.475 | 29.86 |
| (c) Capital work in progress | 30.052 | 68.636 | 62.182 | 38.1 |
| (d) Goodwill | 0 | 7.973 | 7.973 | 7.97 |
| (e) Other intangible assets | 0.762 | 3.947 | 5.252 | 14.53 |
| (f) Intangible assets under development | 0 | 0 | 15.427 | 28.63 |
| (g) Financial assets | ||||
| (i) Investments | 0.05 | 1.181 | 1.562 | 3 |
| (ii) Loans | 0.047 | 0.023 | 1.311 | 1.36 |
| (iii) Other financial assets | 18.856 | 3.971 | 7.391 | 4.97 |
| (h) Deferred tax asset (net) | 0 | 0.369 | 0.417 | 2.14 |
| (i) Non-current tax assets (net) | 0 | 0.95 | 9.046 | 12.53 |
| (j) Other non-current assets | 11.466 | 10.956 | 17.417 | 10.58 |
| Total non-current assets | 225.49 | 373.839 | 523.759 | 649.07 |
| Current assets | ||||
| (a) Inventories | 143.874 | 195.793 | 179.898 | 191.25 |
| (b) Financial assets | ||||
| (i) Investments | 24.466 | 15.302 | 6.676 | 2.16 |
| (ii) Trade receivables | 188.991 | 251.01 | 194.787 | 202.33 |
| (iii) Cash and cash equivalents | 53.398 | 7.558 | 42.261 | 9.44 |
| (iv) Bank balances other than (iii) above | 0.366 | 85.552 | 46 | 38.31 |
| (v) Loans | 0.129 | 0.336 | 0.602 | 1.11 |
| (vi) Other financial assets | 28.059 | 41.45 | 20.175 | 32.05 |
| (c) Other current assets | 38.353 | 21.177 | 45.697 | 38.86 |
| Total current assets | 477.636 | 618.178 | 536.096 | 515.54 |
| Total assets | 703.126 | 992.017 | 1059.855 | 1164.61 |
| Equity and Liabilities | ||||
| Equity | ||||
| (a) Equity share capital | 34.597 | 353.578 | 353.578 | 357.38 |
| (b) Other equity | 126.114 | -4.941 | 32.261 | 67.7 |
| Total equity attributable to owners of the Parent | 160.711 | 348.637 | 385.839 | 425.08 |
| Non-controlling interests | 0 | -11.314 | -11.023 | 91.91 |
| Total equity | 160.711 | 337.323 | 374.816 | 426 |
| Liabilities | ||||
| Non-current liabilities | ||||
| (a) Financial liabilities | ||||
| (i) Borrowings | 63.335 | 71.675 | 81.753 | 123.36 |
| (ii) Lease liabilities | 0 | 10.247 | 23.33 | 18.13 |
| (iii) Others financial liabilities | 13.353 | 4.134 | 4.708 | 8.14 |
| (b) Provisions | 7.935 | 68.023 | 73.647 | 59.57 |
| (c) Deferred tax liabilities (net) | 11.28 | 4.286 | 10.599 | 13.93 |
| (d) Other non-current liabilities | 0.131 | 0 | 0 | |
| Total non-current liabilities | 96.034 | 158.365 | 194.037 | 223.14 |
| Current liabilities | ||||
| (a) Financial liabilities | ||||
| (i) Borrowings | 202.05 | 197.935 | 222.245 | 284.25 |
| (ii) Lease liabilities | 0 | 4.778 | 6.663 | 5.88 |
| (iii) Trade payables | ||||
| - Total outstanding dues of micro enterprises and small | 19.002 | 15.991 | 17.171 | 23.12 |
| - Total outstanding dues of creditors other than micro enterprises and small enterprises | 119.44 | 132.526 | 119.076 | 114.08 |
| (iv) Other financial liabilities | 97.134 | 126.735 | 101.953 | 64.86 |
| (b) Other current liabilities | 6.165 | 15.265 | 21.853 | 15.3 |
| (c) Provisions | 1.96 | 3.099 | 2.041 | 7.97 |
| (d) Current tax liabilities (net) | 0.63 | 0 | 0 | |
| Total current liabilities | 446.381 | 496.329 | 491.002 | 515.47 |
| Total equity and liabilities | 703.126 | 992.017 | 1059.855 | 1164.61 |
| Particulars | 31-03-2022 | 31-03-2023 | 31-03-2024 | 31-03-2025 |
| Revenue from operations | 914.19 | 1,054.62 | 1,064.39 | 1089.6 |
| Other income | 6.955 | 15.372 | 19.033 | 21.64 |
| Total income | 921.15 | 1,070.00 | 1,083.42 | 1111.24 |
| Expenses | ||||
| (a) Cost of materials consumed | 520.44 | 756.29 | 640.45 | 630.44 |
| (b) Purchases of stock-in-trade | 139.88 | 0 | 0 | 7.66 |
| (c) Changes in inventories of finished goods, work in progressand stock in trade | -27.515 | -37.744 | 4.567 | -0.66 |
| (d) Employee benefits expenses | 55.863 | 93.312 | 180.84 | 175 |
| (e) Finance costs | 14.389 | 26.933 | 29.945 | 33.12 |
| (f) Depreciation and amortisati | 15.909 | 18.285 | 28.551 | 37.94 |
| (g) Other expenses | 130.28 | 159.16 | 174.76 | 188.65 |
| Total expenses | 849.25 | 1,016.24 | 1,059.11 | 1072.15 |
| Restated profit before share of net loss of associates, exceptional items and tax | 71.89 | 53.76 | 24.31 | 39.09 |
| Add : Share of net loss of associates net of tax | 0 | -1.625 | 0 | |
| Restated profit before exceptional items and tax | 71.89 | 52.13 | 24.31 | 39.09 |
| Exceptional items | 65.741 | 0 | 0 | |
| Restated profit before tax | 137.64 | 52.13 | 24.31 | 39.09 |
| Tax expense: | ||||
| (a) Current tax | 27.417 | 17.371 | 1.246 | 7.74 |
| (b) Deferred tax | 11.197 | -5.744 | 6.031 | -1.46 |
| Total tax expense | 38.614 | 11.627 | 7.277 | 6.28 |
| Restated profit for the period | 99.02 | 40.51 | 17.03 | 32.81 |
| Particulars | 31-03-2022 | 31-03-2023 | 31-03-2024 | 31-03-2025 |
| PBT | 138 | 52 | 24 | 39 |
| OPBWC | 99 | 98 | 104 | 116 |
| Change in Receivables | -28 | -35 | 56 | -6 |
| Change in Inventories | -37 | -19 | 16 | -11 |
| Change in Payables | -4 | -22 | -9 | 3 |
| Other Changes | 61 | 39 | -29 | -47.4 |
| Working Capital Change | -8 | -37 | 34 | -61.4 |
| Cash Generated From Operations | 91 | 61 | 138 | 54.6 |
| Tax | -26 | -19 | -9 | -11.2 |
| Cash Flow From Operations | 65 | 42 | 129 | 43.4 |
| Purchase of PPE | -57 | -138 | -133 | -152 |
| Sale of PPE | 94 | 0.6 | 0.2 | 0.3 |
| Cash Flow From Investment | 14 | -207 | -77 | -134 |
| Borrowing | -25 | 3 | 34 | 103.3 |
| Dividend | 0 | 0 | 0 | -9.4 |
| Equity | -1.3 | 0 | 0 | 3.8 |
| Others From Financing | -16.7 | 115 | -51 | -40.2 |
| Cash Flow from Financing | -43 | 118 | -17 | 57.5 |
| Net Cash Generated | 36 | -47 | 35 | -33.1 |
| Cash at the Start | 18 | 54 | 7 | 42.5 |
| Cash at the End | 54 | 7 | 42 | 9.4 |
| Particulars | 31-03-2022 | 31-03-2023 | 31-03-2024 | 31-03-2025 |
| ROE | 61.61% | 12.01% | 4.54% | 7.70% |
| ROA | 14.08% | 4.08% | 1.61% | 2.82% |
| ROCE | 23.24% | 6.51% | 2.40% | 3.83% |
| Interest Coverage | 6.00 | 3.00 | 1.81 | 2.18 |
| Debt / Equity | 1.65 | 0.84 | 0.89 | 1.01 |
Growth
Revenue CAGR ~6% (₹914 Cr → ₹1,090 Cr)
Total income growth driven by stable operations and rising other income
Asset base expanded from ₹703 Cr to ₹1,165 Cr (+66%)
Profitability
PBT declined from ₹138 Cr (FY22) to ₹24 Cr (FY24) due to:
Rising employee costs
Higher depreciation from new capex
Increased finance costs
Profit recovery in FY25 with PAT rebounding to ₹32.8 Cr
Margin compression appears cyclical and capex-linked rather than structural
Balance Sheet Strength
Equity increased from ₹161 Cr to ₹426 Cr
PPE grew from ₹164 Cr to ₹495 Cr, indicating scale-up phase
Debt rose moderately to support growth:
Total borrowings ~₹408 Cr (FY25)
Debt-to-equity ~0.96x (manageable for asset-heavy manufacturing)
Cash Flows
Operating cash flows remain positive across all years
Heavy investing outflows due to capex (₹152 Cr in FY25 alone)
FY25 cash dip reflects peak investment cycle, not operating stress
Yes trading in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market through various platforms like Sharescart.com.
No, SEBI does not regulate the unlisted share market but certain rules and regulations of SEBI are applicable in the unlisted market space as well, such as, the DP charges for each transaction, stamp duty, lock-in period and more.
You will get the best price for Hero Motors Limited and a hassle-free buying experience only on Sharescart.com platform.
Hero Motors Limited's unlisted shares can be easily purchased at Sharescart.com by following a few easy steps. Given below are the steps involved in the buying of these shares:
Step 1 - Confirm the number of shares you want to buy/sell of at the trading price.
Step 2 - Submit necessary documents like the Client Master Report (CMR) or additional documents (PAN, canceled cheque) if using a secondary bank account.
Step 3 - Transfer the trade amount to the account details shared by Sharescart.com.
Step 4 - Shares of will reflect in your Demat account within 24 hours after full payment (subject to holidays).
Hero Motors Limited's unlisted shares can be easily sold at Sharescart.com by following a few easy steps. Given below are the steps involved in the of selling of these shares:
Step 1- Confirmation on the number of shares you want to sell of Hero Motors Limited and at what price you want to sell.
Step 2- At Sharescart, we will find a suitable buyer for you according to your requirements and if you accept the trade we will move on to the transfer and the payment aspect of the trade.
Step 3- The Sharescart representative will provide you with the Demat account details to transfer your Hero Motors Limited shares. They will also notify you about the additional details required from your end before the transfer of shares such as client master copy, delivery instruction slip, and more.
Step 4- Once the transfer is complete, the payment would be credited to your bank account within 24 hours, depending on the holidays.
Over the years, the minimum ticket size for investment has dropped as more and more people have started investing in the Unlisted market. Currently, the minimum ticket size for Hero Motors Limited is between 146,000 to 179,000.
Brokers or dealers provide you with a trading facility means you can buy and sell shares with your broker but when you buy shares the Depository holds your shares. There are mainly two depositories NSDL and CDSL.
If you want to check your shares in NSDL and CDSL you need to download the application (NSDL Speede App or CDSL myeasi).
The taxation on the Hero Motors Limited shares may vary depending on 2 Factors:
Short-term capital
Unlisted shares - In unlisted shares, the taxation of short-term capital gain i.e. less than 24 months is taxable according to the investor's income tax slab.
Listed Shares - In listed shares, the taxation for short-term capital gains i.e. less than 12 months is at 20% without indexation benefits.
Long-term capital
Unlisted shares - The taxation for long-term capital gain i.e. more than 24 months is taxable at 12.5% without indexation benefits.
Listed Shares - The taxation for long-term capital gains i.e. more than 12 months is at 12.5% after an exemption of 1.25 lakh.
According to the current rule issued by SEBI last year in August 2021, the lock-in period is brought down from 1 year to 6 months. This was done to entice more investors to invest their money in pre-IPO companies and startups. The lock-in period of Hero Motors Limited varies depending on which type of investor you are:
You can check daily share prices of companies on our website or register with us using your phone number where you will get daily whatsapp updates on company news and other essential informations.
Buy or sell shares with confidence, backed by our research and expert guidance.
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