Incorporated in April 1998, Hero Motors Limited is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the United States, Europe, India and ASEAN region. The Company provides integrated solutions for both electric and non-electric powertrains, serving two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications.
The Company offers system-level and component-level solutions covering designing, prototyping, validation, development and delivery of powertrain systems. It is recognized for its expertise in continuously variable transmissions (CVT), EV transmissions, electric motors, integrated drive units and gear sets. The Company also has a first-mover position in the global e-bike powertrain market and is the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrain products for e-bikes.
The Company’s operations are divided into Powertrain Solutions and Alloys and Metallics (A&M) segments. Powertrain Solutions comprises Gears and Transmissions (G&T), serving automotive and mobility applications, and Bike Powertrain (BPT), focused on micro-mobility applications and global e-bike manufacturers. The A&M segment provides sheet metal and tubular assemblies and components primarily to automotive OEMs.
The Company has established relationships with global customers including BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV and HWA, along with leading global e-bike manufacturers. It focuses on technology and innovation through in-house design and engineering capabilities and partnerships with global technology players.
As of March 31, 2026, the Company had 1,388 permanent employees and 707 contract labourers.
Competitive Strengths
Hero Motors Ltd.’s revenue increased by 9% and profit after tax (PAT) rose by 26% between the financial year ending with March 31, 2026 and March 31, 2025.
| Period Ended | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Total Income | 1,216.74 | 1,111.23 | 1,083.42 |
| Profit After Tax | 41.17 | 32.80 | 17.04 |
| EBITDA | 147.78 | 114.00 | 86.28 |
| NET Worth | 482.45 | 423.95 | 385.44 |
| Reserves and Surplus | 116.32 | 67.71 | 32.26 |
| Total Borrowing | 400.79 | 407.62 | 304.00 |
| Amount in ₹ Crore | |||
| Company | Issue Type | Issue Size | Issue Price | PE Ratio | Listing Day Close | Listing Gain/Loss % | LTP |
|---|---|---|---|---|---|---|---|
| Dhoot Transmission Ltd. | Mainboard | ₹3,066.89 Cr | ₹871 | 41.36 | ₹1,187.05 | +36.29% | ₹1,555.90 |
| SEDEMAC Mechatronics Ltd. | Mainboard | ₹1,087.35 Cr | ₹1352 | 126.91 | ₹1,451.10 | +7.33% | ₹2,950.70 |
| Tenneco Clean Air India Ltd. | Mainboard | ₹3,600.00 Cr | ₹397 | 28.97 | ₹490.80 | +23.63% | ₹512.90 |
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by Company | 190.00 |
| 2 | Capital expenditure of Company through purchase of equipment for expansion in capacity of Gautam Buddha Nagar, Uttar Pradesh facility | 200.00 |
| 3 | Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes( | |
| Total | 390.00 |
| KPI | Mar 31, 2026 |
|---|---|
| ROE | 8.56% |
| ROCE | 19.77% |
| Debt/Equity | 0.83 |
| RoNW | 8.53% |
| PAT Margin | 3.46% |
| EBITDA Margin | 12.44% |
| NAV | 12.72 |
| Price to Book Value | 6.60 |
| Valuation Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS (₹) | 1.08 | 0.91 |
| P/E (x) | 77.78 | 92.31 |
| IPO Date | 16 to 18 Sep, 2026 |
| Listing Date | Wed, Sep 23, 2026 |
| Face Value | ₹10 per share |
| Price Band | ₹79 to ₹84 |
| Lot Size | 178 Shares |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Total Issue Size | 11,90,47,618 shares (agg. up to ₹1,000 Cr) |
| Fresh Issue | 7,14,28,571 shares (agg. up to ₹600 Cr) |
| Offer for Sale | 4,76,19,047 shares of ₹10 (agg. up to ₹400 Cr) |
| Share Holding Pre Issue | 38,27,87,005 shares |
| Share Holding Post Issue | 45,42,15,576 shares |
The promoters of the company are Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings.
| Share Holding Pre Issue | 84.67% |
| Share Holding Post Issue | 61.63% |
As per our analysis and Based on the information we have, this is the output.
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