Hero Motors shares rise 6.5% after strong Q2 results and HEL stake deal

what happened

Shares of Hero Motors climbed more than 6.5% on Wednesday, a day after the company published second-quarter results, according to Mint. The stock opened at Rs161 on the NSE against Tuesday's close of Rs155.19 and reached an intraday peak of Rs167.39.

Net profit for the quarter came in at Rs10.2 crore, up from Rs4.73 crore a year earlier. Revenue grew 24.9% to Rs319.3 crore from Rs255.7 crore. EBITDA rose 92% to Rs35.9 crore from Rs18.7 crore, while the EBITDA margin widened to 11.3% from 7.3%.

Separately, the company has proposed buying another 39% of its subsidiary Hewland Engineering Ltd (HEL) from William and Siobhan Hewland, paying roughly £0.60 million in cash. The deal involves 8,039 shares, each with a £1 nominal value, and would lift Hero Motors' holding in HEL from 51% to 90%. Completion is expected in about six months, with no government or regulatory sign-off needed.

why it matters

For markets, the report pairs a sharp rise in profit and margins with a move to consolidate control of HEL, lifting Hero Motors' stake in the unit to 90%. The strong share-price reaction suggests investors read the quarter as a positive signal, though the figures alone do not show where the stock heads next.

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