Hero Motors Limited
1 MAbout Hero Motors Limited
A Comprehensive Overview of Price & Journey
Understanding Hero Motors Limited Inception and Growth
Overview
Hero Motors Limited is an automotive-tech company that manufactures high-precision powertrain solutions, drivetrain components, gears & transmissions, and alloys for the global mobility market. There has been confusion, and investors must be able to understand Hero Motors Limited Unlisted Share price is not Hero MotoCorp—they are a separate legal entity under the Hero Motors Group controlled by the Munjal Family. The HMC group is a conglomerate with business segments across automotive components, E-mobility cycles, real estate, and premium retail, with group revenue crossing $700 million. Earlier the group was in JV with a global partner—Briggs & Stratton; subsequently, it evolved independently.
Hero Motor’s Limited unlisted share has gained traction recently because SEBI has approved its IPO in September 2025, EV transition is accelerating, and the company is differentiated from other players as it is building EV powertrain capability years before others even considered the shift.
What Marken Does
Hero Motors solves the hardest problem in the mobility segment—engineer high-precision and high-performance transmission systems for traditional vehicles and now EVs—featuring completely different mechanics. The company operates in two business verticals—powertrain solutions and Alloys & metallics—enabling it to deliver fully integrated systems.
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Powertrain Solutions: Gears & Transmission (G&T)
They design and manufacture end-to-end transmission systems for two-wheelers, cars, commercial vehicles, aerospace, marine, off-road vehicles, and specialty EVs. In 2023, they had established a state-of-the-art gearbox assembly facility in Thailand to serve the global ICE and EV market.
Products under this segment:
- Design and Validation Services
- ICE Gearbox
- EV Gearbox
- E-Axle
- Gearset Assembly
- Gear and Shaft Components
-
Powertrain Solutions: Bike Powertrain (BPT)
This division exclusively focuses on EV space; they supply CVT systems, electric motors, and integrated electric drive units for the micro mobility market.
Products under this segment:
- Continuous Variable Transmission (CVT)
- Electric Motors
- Electric Drive units
-
Alloys & Metallics
Under this business segment, hero manufactures a wide range of lightweight alloy components for the automotive and two-wheeler segments, including but not limited to ICE and EV platforms.
Products under this segment:
- Structural Components
- Alloy Frames
- Suspension Forks, Wheel Rims, BB Catridges & Seats
Revenue Highlights?
Revenue by Customer
Hero Motors Limited, BMW AG, Enviolo, HWA AG, Makino Auto Industries Private Limited, and Ducati are the top customers of Hero Motors Limited, and their demand for high-quality and high-performance auto components has increased over time—this increased demand is reflected in the company’s topline performance till FY24.
The top 10 customers constitute 74.46% of the company's total revenue (9M FY25). The concentration has been noticed to be consistently high, ranging from 76.96% to 88.84% in FY22, FY23, and FY24. This represents structural risk, and the majority of revenue depends upon the top 10 customers; any lost contract could severely impact the topline.
Revenue by Geography
Revenue coming from Europe accounts for 26.27% of total revenue (9M FY25), following 29.33% in FY24, 32.47% in FY23, and 29.34% in FY22.
During FY24, the company has generated INR 439.4 Cr from international clients, representing almost 41% of total revenue. This signifies geographic concentration risk and dependence on international customers. Any breakage in deal pipelines due to any reason—economic, geopolitical, or any other—may severely impact revenue and thus profitability.
Revenue & Profit Trends
- Topline showed improved performance till FY23, then slowed and stagnated; in FY26 the company reported 1090 Cr in revenue—a slight improvement from FY25 INR 1064 Cr.
- Profit After Tax dropped from 99 Cr in FY23 to 33 Cr in FY26 due to a drop in high-margin export volume combined with unabsorbed fixed manufacturing costs from recent factory expansion.
Competitive Landscape
Hero Motors operates in a B2B automotive engineering and high-precision components manufacturing space. The competitive landscape of Hero Motors is shaped by a combination of high-tech mobility players and tier 1 auto component manufacturers. As per the DRHP filed by the company, some of the listed peers are Sona BLW Precision Forgings (Sona Comstar), Endurance Technologies, UNO Minda, CIE Automotive India, and Varroc Engineering.
The competitive positioning of Hero Motors can be interpreted as follows:
Geographic Mix & Export Exposure
- The Positioning: Hero Motors has high exposure to export and global premium markets; almost 41% of total revenue comes from international clients.
- Vs Peers: UNO Minda (14.02%) and Endurance Technologies (25.96%) have a lesser global footprint than Hero Motors. However, it closely aligns with CIE automotive (43%) and Sona BLW (57.70%).
Technological Edge and R&D Capability
The Positioning: Hero Motors outspends few of its listed peers in R&D expenditure as a percentage of revenue; it supports a specialized E-mobility division and end-to-end prototyping.
Vs Peers: In EV powertrains and high-precision, high-performance gear spaces, its closest competitor is Sona BLW, which leads the global EV market.
Operational Efficiency and Inventory Control
The Positioning: One of the key operational risks of Hero Motors is asset management; it has a lower asset turnover ratio than its peers and 62 to 71 inventory holding days.
Vs Peers: Listed peers have better inventory control with Endurance Technologies (31 days), UNO Minda (43 days), and CIE India (46 days). One of the reasons for subpar operational efficiency is front-loading of capital expenditure into rapid factory expansion.
Profitability Margin and Financial Scale
The Positioning: Hero Motors has been able to match technological capabilities as its peers’ but lags behind in terms of profitability margin and financial scale. It runs on leaner financial margins with Net Profit Margin of 3.03% (FY25), Operating Profit Margin of 8.13% (FY25).
Vs Peers: Sona BLW, UNO Minda and other peers enjoy premium market valuation due to efficient asset management capabilities and double-digit profitability margins.
Funding & Valuation
Timeline
Funding Stage
Amount Raised
January 2023
Private Equity (PE) Round
Undisclosed (approx ₹1,500 Cr investment framework)
August 2024
Initial IPO Filing (Withdrawn)
₹900 Crore
2025 – 2026
Refiled DRHP (Current Pipeline)
₹1,200 Crore
Promoters & Management
Promoters
- O.P. Munjal Holdings
- Bhagyoday Investments
- Hero Cycles Limited
Management
- Pankaj M. Munjal (Chairman): Over 38 years of experience
- Amit Gupta (MD & CEO): Over 20 years of experience
- Utkarsh Sanghi (CFO): Over 23 years of experience
- Dhiraj Kapoor (Company Secretary & Compliance Officer): Over 23 years of experience
SHOW MORE...
Overview
Hero Motors Limited is an automotive-tech company that manufactures high-precision powertrain solutions, drivetrain components, gears & transmissions, and alloys for the global mobility market. There has been confusion, and investors must be able to understand Hero Motors Limited Unlisted Share price is not Hero MotoCorp—they are a separate legal entity under the Hero Motors Group controlled by the Munjal Family. The HMC group is a conglomerate with business segments across automotive components, E-mobility cycles, real estate, and premium retail, with group revenue crossing $700 million. Earlier the group was in JV with a global partner—Briggs & Stratton; subsequently, it evolved independently.
Hero Motor’s Limited unlisted share has gained traction recently because SEBI has approved its IPO in September 2025, EV transition is accelerating, and the company is differentiated from other players as it is building EV powertrain capability years before others even considered the shift.
What Marken Does
Hero Motors solves the hardest problem in the mobility segment—engineer high-precision and high-performance transmission systems for traditional vehicles and now EVs—featuring completely different mechanics. The company operates in two business verticals—powertrain solutions and Alloys & metallics—enabling it to deliver fully integrated systems.
-
Powertrain Solutions: Gears & Transmission (G&T)
They design and manufacture end-to-end transmission systems for two-wheelers, cars, commercial vehicles, aerospace, marine, off-road vehicles, and specialty EVs. In 2023, they had established a state-of-the-art gearbox assembly facility in Thailand to serve the global ICE and EV market.
Products under this segment:
- Design and Validation Services
- ICE Gearbox
- EV Gearbox
- E-Axle
- Gearset Assembly
- Gear and Shaft Components
-
Powertrain Solutions: Bike Powertrain (BPT)
This division exclusively focuses on EV space; they supply CVT systems, electric motors, and integrated electric drive units for the micro mobility market.
Products under this segment:
- Continuous Variable Transmission (CVT)
- Electric Motors
- Electric Drive units
-
Alloys & Metallics
Under this business segment, hero manufactures a wide range of lightweight alloy components for the automotive and two-wheeler segments, including but not limited to ICE and EV platforms.
Products under this segment:
- Structural Components
- Alloy Frames
- Suspension Forks, Wheel Rims, BB Catridges & Seats
Revenue Highlights?
Revenue by Customer
Hero Motors Limited, BMW AG, Enviolo, HWA AG, Makino Auto Industries Private Limited, and Ducati are the top customers of Hero Motors Limited, and their demand for high-quality and high-performance auto components has increased over time—this increased demand is reflected in the company’s topline performance till FY24.
The top 10 customers constitute 74.46% of the company's total revenue (9M FY25). The concentration has been noticed to be consistently high, ranging from 76.96% to 88.84% in FY22, FY23, and FY24. This represents structural risk, and the majority of revenue depends upon the top 10 customers; any lost contract could severely impact the topline.
Revenue by Geography
Revenue coming from Europe accounts for 26.27% of total revenue (9M FY25), following 29.33% in FY24, 32.47% in FY23, and 29.34% in FY22.
During FY24, the company has generated INR 439.4 Cr from international clients, representing almost 41% of total revenue. This signifies geographic concentration risk and dependence on international customers. Any breakage in deal pipelines due to any reason—economic, geopolitical, or any other—may severely impact revenue and thus profitability.
Revenue & Profit Trends
- Topline showed improved performance till FY23, then slowed and stagnated; in FY26 the company reported 1090 Cr in revenue—a slight improvement from FY25 INR 1064 Cr.
- Profit After Tax dropped from 99 Cr in FY23 to 33 Cr in FY26 due to a drop in high-margin export volume combined with unabsorbed fixed manufacturing costs from recent factory expansion.
Competitive Landscape
Hero Motors operates in a B2B automotive engineering and high-precision components manufacturing space. The competitive landscape of Hero Motors is shaped by a combination of high-tech mobility players and tier 1 auto component manufacturers. As per the DRHP filed by the company, some of the listed peers are Sona BLW Precision Forgings (Sona Comstar), Endurance Technologies, UNO Minda, CIE Automotive India, and Varroc Engineering.
The competitive positioning of Hero Motors can be interpreted as follows:
Geographic Mix & Export Exposure
- The Positioning: Hero Motors has high exposure to export and global premium markets; almost 41% of total revenue comes from international clients.
- Vs Peers: UNO Minda (14.02%) and Endurance Technologies (25.96%) have a lesser global footprint than Hero Motors. However, it closely aligns with CIE automotive (43%) and Sona BLW (57.70%).
Technological Edge and R&D Capability
The Positioning: Hero Motors outspends few of its listed peers in R&D expenditure as a percentage of revenue; it supports a specialized E-mobility division and end-to-end prototyping.
Vs Peers: In EV powertrains and high-precision, high-performance gear spaces, its closest competitor is Sona BLW, which leads the global EV market.
Operational Efficiency and Inventory Control
The Positioning: One of the key operational risks of Hero Motors is asset management; it has a lower asset turnover ratio than its peers and 62 to 71 inventory holding days.
Vs Peers: Listed peers have better inventory control with Endurance Technologies (31 days), UNO Minda (43 days), and CIE India (46 days). One of the reasons for subpar operational efficiency is front-loading of capital expenditure into rapid factory expansion.
Profitability Margin and Financial Scale
The Positioning: Hero Motors has been able to match technological capabilities as its peers’ but lags behind in terms of profitability margin and financial scale. It runs on leaner financial margins with Net Profit Margin of 3.03% (FY25), Operating Profit Margin of 8.13% (FY25).
Vs Peers: Sona BLW, UNO Minda and other peers enjoy premium market valuation due to efficient asset management capabilities and double-digit profitability margins.
Funding & Valuation
|
Timeline |
Funding Stage |
Amount Raised |
|---|---|---|
|
January 2023 |
Private Equity (PE) Round |
Undisclosed (approx ₹1,500 Cr investment framework) |
|
August 2024 |
Initial IPO Filing (Withdrawn) |
₹900 Crore |
|
2025 – 2026 |
Refiled DRHP (Current Pipeline) |
₹1,200 Crore |
Promoters & Management
Promoters
- O.P. Munjal Holdings
- Bhagyoday Investments
- Hero Cycles Limited
Management
- Pankaj M. Munjal (Chairman): Over 38 years of experience
- Amit Gupta (MD & CEO): Over 20 years of experience
- Utkarsh Sanghi (CFO): Over 23 years of experience
- Dhiraj Kapoor (Company Secretary & Compliance Officer): Over 23 years of experience
Fundamentals
Financials
All values are INR Cr except per share value
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Shareholding Pattern
2026
| Name | Designation | Share % |
|---|---|---|
| Munjal family | Promoter | 76.42% |
| South asia growth invest LLC | Promoter | 7.26% |
| Bhagyoday investments private limited | Promoter | 6.71% |
| Others | Others | 9.61% |
Events
| Name | Date | Details |
|---|---|---|
| No events available. | ||
Frequently Asked Questions
Like any other financial product or commodity, the price of unlisted shares is discovered at the intersection of demand from buyers and supply from sellers of particular unlisted shares.
The two determinants of price are dynamic factors and keep changing constantly, hence share price tends to fluctuate constantly – every day, every minute.
Upon successful completion of a deal, the unlisted shares are credited electronically directly to your standard demat account that is usually created with CDSL or NSDL (Central Depository Services Limited or National Securities Depository Limited).
The lock-in period of Hero Motors Limited varies depending on the category of the investor:
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Venture capital or foreign venture capital investors are subject to lock-in period of 6 months from the date of acquisition of shares
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For AIF investors of Category-II are not subject to any lock-in.
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Any other investor, including retail investors, HNI or corporate investors are subject to a lock-in period of 6 months from the date of listing.
Note – The above-mentioned lock-in is for mainboard, however for SME IPO the applicable lock-in period is 1 Year.
There is no regulatory minimum limit to invest in unlisted shares. However, minimum investment size varies with the per share price. Earlier, the typical investment size often ranges between 70K – 100K, but with the growing awareness and increased participation the investment size has been down sized to 50k.
Short-Term Capital Gain tax is applicable when you sell your unlisted shares within a year from date of acquisition. Realized gain is taxable at your slab rate after consolidating in total income for the year. Hence, the rate of tax depends on your overall income for the particular financial year.
Long-Term Capital Gain taxes are applicable when you sell your unlisted shares after two years from the date of acquisition. LTCG tax is calculated on profits realized on sale of unlisted shares at 12.5%. Investors particularly retail or HNI must understand the concept clearly as it impacts strategy and tax planning.
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You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
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Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
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You would also get email confirmation of credit of shares via email.
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The value of share in unlisted space is determined in the same way as it is done in the listed market. Demand and supply decide the price of any share. If the demand is more than the supply, then the price of the share increases and vice versa.
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When a new share is introduced in the unlisted space, the value of the company is decided upon the last funding raised by the company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
Yes, investing in unlisted shares is legal in India, the activity is regulated and governed under the rules and guidelines laid by SEBI (Securities and Exchange Board of India). Related parties must comply with the regulations and guidelines to ensure legal and financial standards.
Investing in unlisted shares in India carries a significant and distinctive risk profile such as limited liquidity, lack of transparent pricing and regulatory oversight because unlisted shares do not trade on listed stock exchange, they are bought or sold in OTC (over the counter) market that makes vulnerable to following risks:
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Liquidity risk, unlisted shares are difficult to buy and sell,
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Lack of transparent pricing, as share price of pre-IPO or unl;isted company is often determined by narrative not fundamentals
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Lack of information disclosure, unlisted companies are not mandated for disclosures like listed companies
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Tax ambiguity, because determination of fair market value and cost of acquisition of unlisted shares is often disputed
Hence, investors should carefully examine related facts before investing in Pre-IPO or unlisted shares.