Hero MotorsIPO Review — Financials, Valuation & Peers
A data-only look at the Hero Motors IPO: restated financials, valuation ratios, the RHP peer group and third-party analyst views. ipostation does not rate IPOs — nothing here is a recommendation.
Financials (₹ Cr)
| Period Ended | Revenue | PAT | EBITDA | Net Worth | Total Assets | Borrowings | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY 2024 | 1,083.42 | 17.04 | 86.28 | 385.44 | 1,059.86 | 304 | — |
| FY 2025 | 1,111.23 | 32.8 | 114 | 423.95 | 1,164.62 | 407.62 | — |
| FY 2026 | 1,216.74 | 41.17 | 147.78 | 482.45 | 1,371.83 | 400.79 | 1.08 |
Restated figures from the offer document. Amounts in ₹ crore; EPS in ₹ per share. FY = the 12 months ended 31 March.
KPIs & Valuation
- P/E (pre-issue)
- 77.78x
- P/E (post-issue)
- 92.31x
- RoNW
- 8.53%
- RoE
- 8.56%
- RoCE
- 19.77%
- Debt / Equity
- 0.83
- EPS (pre-issue)
- ₹1.08
- EPS (post-issue)
- ₹0.91
- EBITDA Margin
- 12.44%
- PAT Margin
- 3.46%
- P/BV
- 6.6x
- NAV / share
- ₹12.72
- Market Cap
- ₹3,815.41 Cr
As of 31 Mar 2026 (latest reported period in the offer document). Market cap is computed on a post-issue basis at the upper price band.
Peer Comparison
| Company | EPS (₹) | NAV (₹) | P/E | RoNW | P/BV | Statements |
|---|---|---|---|---|---|---|
| Hero Motors | 1.15 | 12.72 | — | 8.53% | — | Restated |
| Cie Automotive India Ltd | 21.69 | 164.65 | 17.68x | 13.18% | 2.34x | Consolidated |
| Endurance Technologies Ltd | 67.66 | 442.54 | 40.84x | 15.29% | 6.25x | Consolidated |
| Sona Blw Precision Forgings Ltd | 10.3 | 93.93 | 76.5x | 10.77% | 8.47x | Consolidated |
| Uno Minda Ltd | 20.78 | 113.77 | 59.84x | 19.59% | 10.98x | Consolidated |
| Varroc Engineering Ltd | 14.73 | 80.45 | 56.15x | 18.7% | 10.34x | Consolidated |
Peer group as disclosed in the offer document, figures as of 31 Mar 26. The issuer’s P/E is computed at the upper price band.
Promoters & Shareholding
Promoters: <p>Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings</p>
- Holding (pre-issue)
- 84.67%
- Holding (post-issue)
- 61.63%
- Dilution
- 23.04%
Broker Recommendations
| Reviewer | Verdict |
|---|---|
| Capital Market | Neutral |
Third-party analyst views on the Hero Motors IPO, aggregated for reference. ipostation does not rate IPOs — nothing here is investment advice.
Analysis in brief
Anchor book
24 anchor investors participated in the Hero Motors IPO ahead of the public offer, together allocated ₹299.98 crore. Anchor investors are institutions allotted shares at the issue price a day before bidding opens, in exchange for a mandatory post-listing lock-in — their names and cheque sizes are disclosed, which is why the anchor book is read as an institutional signal. The largest allocations went to ICICI PRUDENTIAL SMALLCAP FUND (₹74.99 crore), KOTAK MULTI ASSET ALLOCATION FUND (₹52.99 crore) and BANK OF INDIA SMALL CAP FUND (₹27 crore). Investor categories represented include Other, Bank, Insurance and FII/FPI. The lock-in on half the anchor shares ends on 20 Oct 2026, with the remainder locked until 19 Dec 2026.
Analyst view tally
ipostation tracks 1 third-party reviewer on the Hero Motors IPO, including Capital Market. Of the 1 with a stated verdict, 1 says "Neutral". These are the views of the named reviewers, reproduced as published — they are not ipostation's recommendation, and this page does not rate the issue.
Margin and return profile
The offer document gives a read on the operating engine behind the issue. Hero Motors operates at an EBITDA margin of 12.44% and a net (PAT) margin of 3.46% — the share of revenue retained at the operating and the net level respectively. Capital efficiency reads at a return on capital employed (RoCE) of 19.77% and a return on equity (RoE) of 8.56%. At the upper band, the post-issue market capitalisation works out to about ₹3,815.41 crore. These are offer-document figures for the latest reported period (as of 31 Mar 2026); they describe the business as disclosed, not how the stock will trade.
Objects of the issue
Per the offer document, the company intends to deploy the net proceeds primarily toward capital expenditure of company through purchase of equipment for expansion in capacity of gautam buddha nagar, uttar pradesh facility (₹200 crore), alongside repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by company (₹190 crore). In all, 4 objects are disclosed.
Financials
In FY2026, Hero Motors reported revenue of ₹1,216.74 crore and a net profit of ₹41.17 crore. Revenue grew from ₹1,083.42 crore in FY2024 to ₹1,216.74 crore in FY2026 (+12.0%). Net worth stood at ₹482.45 crore at the end of FY2026. At the upper band, that puts the issue at roughly 77.8× FY2026 earnings (P/E), a figure worth comparing against listed peers in the sector.
Valuation
At the upper band, the issue is priced at 92.31× post-issue earnings and 6.6× book value, against a return on net worth of 8.53% and a debt-to-equity ratio of 0.83. These ratios come from the offer document and are for comparison, not a recommendation.
Peer comparison
The offer document names listed peers including Cie Automotive India Ltd and Endurance Technologies Ltd, with a median peer P/E of about 56.2×. The issue's own post-issue P/E works out to 92.31×.
Promoters
The promoters of the company are <p>Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings</p>. Promoter holding stands at 84.67% before the issue and comes down to 61.63% after listing.
Frequently asked questions
- What is the reservation split in the Hero Motors IPO?
- Of the total shares offered, retail investors get 35%, QIBs 20% (plus 30% anchor), non-institutional investors 15%.
- Who are the promoters of Hero Motors and what is their holding?
- The promoters are <p>Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings</p>. Promoter holding is 84.67% before the issue and 61.63% after listing.
- What is the P/E ratio of the Hero Motors IPO?
- At the upper price band, the Hero Motors IPO is valued at 77.78× pre-issue earnings and 92.31× post-issue earnings, based on the financials disclosed in the offer document.
- What are the objects of the Hero Motors IPO?
- The net proceeds go primarily toward capital expenditure of company through purchase of equipment for expansion in capacity of gautam buddha nagar, uttar pradesh facility, among 4 disclosed objects.