Citi has maintained its buy rating on Hero MotoCorp with a target price of ₹6,100 per share after the company reported a Q2FY26 performance slightly ahead of expectations. The beat was driven primarily by higher average selling prices (ASPs), which in turn supported EBITDA margin expansion during the quarter.
The brokerage said it will closely track management commentary across several key areas during the post-earnings interaction. This includes clarity on the demand boost from GST rate cuts and whether this traction is sustainable across entry-level motorcycles, which remain a critical volume driver.
Citi also seeks more details on the gap between wholesale and retail numbers in October, particularly given the festive season tailwinds. Margin trajectory remains a key monitorable as Hero’s EV market share expands and as the company evaluates the impact of safety regulations such as ABS adoption.
The brokerage further expects more colour on the company’s ₹1.7 billion investment to establish a Global Parts Center, scheduled to begin operations in FY28, and how this supports export scale-up and supply chain optimisation.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
