Hero Motors IPO Review 2026: Business, Financials and Key Considerations

Hero Motors Limited, an automotive powertrain and alloys solutions manufacturer, is opening its ₹1,000 crore initial public offering on September 16, 2026. The mainboard issue combines a fresh issue of shares with an offer for sale by the promoter group, and closes on September 18, 2026. This review covers the offer structure, GMP status, financials, business model, and the strengths and risks worth weighing before the issue closes.

Hero Motors IPO: Quick Overview

KFin Technologies Ltd is the registrar for the IPO and will manage allotment, refunds and other investor-related processes. ICICI Securities Ltd, DAM Capital Advisors Ltd, and JM Financial Ltd are the lead managers coordinating the issue. You can track live updates on the Hero Motors IPO detail page on IPO Ji.

About Hero Motors

Incorporated in 2001, Hero Motors Limited is an automotive technology company that designs, develops, manufactures, and supplies powertrain solutions to OEMs across the US, Europe, India, and the ASEAN region, alongside an Alloys and Metallics (A&M) business supplying powertrain-neutral materials for EVs, ICE, and hybrid vehicles.

The company's client base includes global names such as BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc., and leading e-bike manufacturers, and it operates six manufacturing facilities across India, the UK, and Thailand. The promoters are Pankaj Munjal, Charu Munjal, Abhishek Munjal, and O P Munjal Holdings, and the registered office is in Ludhiana, Punjab.

Financial Performance of Hero Motors

Figures below are in ₹ crore, drawn from the company's restated consolidated financials.

• Total Income grew from ₹1,083.42 Cr in FY24 to ₹1,111.23 Cr in FY25 to ₹1,216.74 Cr in FY26.
• Profit After Tax rose from ₹17.04 Cr (FY24) to ₹32.80 Cr (FY25) to ₹41.17 Cr (FY26) — revenue grew 9% and PAT grew 26% between FY25 and FY26.
• EBITDA increased from ₹86.28 Cr (FY24) to ₹114.00 Cr (FY25) to ₹147.78 Cr (FY26).
• Net Worth rose from ₹385.44 Cr (FY24) to ₹423.95 Cr (FY25) to ₹482.45 Cr (FY26).
• Reserves & Surplus increased from ₹32.26 Cr (FY24) to ₹67.71 Cr (FY25) to ₹116.32 Cr (FY26).
• Total Assets grew from ₹1,059.86 Cr (FY24) to ₹1,164.62 Cr (FY25) to ₹1,371.83 Cr (FY26).
• Total Borrowings moved from ₹304.00 Cr (FY24) up to ₹407.62 Cr (FY25), then eased slightly to ₹400.79 Cr (FY26) — worth reading alongside the fresh issue's debt-repayment objective below.

Strengths of Hero Motors

• Global, diversified client base. Supplies powertrain solutions to established international automotive and e-bike brands, including BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc., Formula Motorsport Ltd., Hummingbird EV, and HWA AG.
• Niche manufacturing capability. States it is the only player manufacturing and exporting CVT hubs to global e-bike OEMs from India, and the only manufacturer of integrated electric powertrain products for e-bikes in India.
• Multi-country manufacturing footprint. Operates six facilities across India, the UK, and Thailand, including a Thailand plant added in Fiscal 2024 to serve the ASEAN market and a UK facility with design and prototyping capability.
• Consistent growth in scale and profitability. Total income, EBITDA, PAT, net worth, and assets have all risen year-on-year across FY24, FY25, and FY26.
• Powertrain-neutral product mix. The Alloys and Metallics segment serves EV, ICE, and hybrid vehicle makers alike, reducing dependence on any single powertrain technology's adoption curve.

Risks of Hero Motors

• Rising borrowings. Total borrowings increased from ₹304.00 Cr (FY24) to ₹407.62 Cr (FY25) before easing marginally to ₹400.79 Cr (FY26); part of the fresh issue proceeds are earmarked for debt repayment.
• Concentrated promoter-linked OFS. The offer-for-sale portion is being sold entirely by O.P. Munjal Holdings, Bhagyoday Investments Pvt. Ltd., and Hero Cycles Ltd. — all promoter-group entities — rather than the company itself.
• Dependence on global OEM relationships and export markets. A meaningful share of revenue is linked to international automotive and e-bike OEM contracts, exposing the business to global auto-sector demand cycles and currency movements.
• Capital-intensive, multi-geography operations. Running manufacturing and technology centres across India, the UK, and Thailand adds operational and regulatory complexity relative to a single-geography manufacturer.

How to Apply in Hero Motors IPO

1. Open the IPO Ji app (Play Store/App Store) or visit ipoji.com.
2. Search for "Hero Motors IPO" and open its detail page.
3. Review the price band, lot size and dates one more time.
4. Select your Demat account, enter the number of lots (in multiples of 178 shares), and choose your bid price within the ₹79–₹84 band.
5. Submit the application using your registered UPI ID and approve the mandate request when it arrives, before the deadline on the closing date.

The application amount stays blocked in your bank account via ASBA/UPI and is debited only on allotment. You can also apply through a supported broker's app or via net banking ASBA. Compare supported brokers on the IPO Ji broker directory.

Frequently Asked Questions

This article is for informational and educational purposes only and does not constitute investment advice, a recommendation to buy, sell, or subscribe to any securities, or a solicitation of any kind.