Two-Wheeler Titans Surge: Hero, TVS, Bajaj Post Stellar Sales & Profits - Is This the Start of a Major Bull Run?

Two-Wheeler Giants Show Strong Momentum Post-Festive Season

Indian two-wheeler manufacturers Hero MotoCorp, TVS Motor Company, and Bajaj Auto are demonstrating robust sales performance and financial health, building on festive season buoyancy and recent GST cuts. November 2025 sales figures reveal significant year-on-year growth for these leading players, with some stocks nearing their 52-week highs, indicating positive investor sentiment.

November Sales Shine Amidst Demand Revival

• Hero MotoCorp reported a substantial 31.5% year-on-year (YoY) jump in November 2025 sales, reaching 6.04 lakh units. The company attributed this surge to strong demand for its newly launched models like the Xtreme 125R and GlamourX 125, alongside a noted revival in rural spending. This follows a slight dip in October 2025 sales, which the company managed by stabilizing operations post-GST cuts. Combined sales for October and November 2025 showed an 8.9% YoY growth.
• TVS Motor Company also posted impressive growth, with November 2025 sales up 29.5% YoY to 5.19 lakh units. Key drivers included a significant 58.2% YoY jump in exports and a strong 45.7% YoY rise in electric vehicle sales. TVS Motor had already shown a healthy 11.2% YoY growth in October 2025. Their combined sales for the two months grew by 19.4% YoY.
• Bajaj Auto recorded a 7.6% YoY growth in total sales for November 2025, reaching 4.53 lakh units. This was primarily fueled by a 13.8% YoY increase in its export sales. The company had a similar performance in October 2025, with exports driving an 8% YoY growth in total sales. Their combined sales for October and November 2025 grew by 7.8% YoY.

Financial Performance in Q2 FY26

The second quarter of the financial year 2026 (Q2 FY26) has been strong for these companies, with revenue, margins, and profits showing healthy increases.

• Hero MotoCorp saw its standalone revenue from operations grow by 15.9% YoY to Rs 12,126.4 crore in Q2 FY26. Its core operating profit margin improved by 60 basis points YoY to 15.1%, and net profit rose by 15.7% YoY to Rs 1,392.8 crore, supported by strong demand for its Vida electric range and 100-125 cc models.
• Bajaj Auto reported a 13.7% YoY growth in revenue to Rs 14,922 crore for Q2 FY26. Boosted by strong exports, its core operating profit margin improved by 30 basis points YoY to 20.4%. The company's standalone net profit climbed 23.6% YoY to Rs 2,479.7 crore.
• TVS Motor Company achieved its highest-ever quarterly unit sales in Q2 FY26, growing 22.7% YoY to over 1.5 million units. Revenue surged by 29% YoY to Rs 11,905.4 crore, and its core operating profit margin increased by 130 basis points YoY to 13%. Net profit saw a substantial 36.9% YoY rise to Rs 906.1 crore, driven by strong motorcycle exports and domestic demand.

Efficiency and Valuations

• In terms of Return on Capital Employed (ROCE) for the current financial year, Bajaj Auto leads with 37.6%, followed closely by TVS Motor Company at 34.7%, and Hero MotoCorp at 31.5% on a standalone basis.
• Valuations show Bajaj Auto trading at a standalone Price-to-Earnings (P/E) ratio of 29.1, while Hero MotoCorp trades at 26.1 times. TVS Motor Company has a higher P/E ratio of over 50 times, reflecting strong market expectations.

Future Pipeline: Electric Mobility Takes Center Stage

The companies are actively expanding their product portfolios, with a significant focus on electric vehicles (EVs) and new motorcycle segments.

• TVS Motor Company unveiled six new models at an exhibition in Milan, including the super sport bike TVS Tangent RR Concept and its first electric maxi scooter, the TVS M1-S.
• Bajaj Auto plans to launch new models such as the Avenger EX 450, a new 125cc motorcycle, and an electric Pulsar.
• Hero MotoCorp has several launches planned for 2026, including the Hero Xpulse 160 and 400, and new additions to its electric Vida brand.

Impact

• The strong performance of these major two-wheeler companies indicates a healthy consumer demand, especially in rural markets, and effective export strategies. This trend is positive for the automotive sector and the broader Indian economy. It suggests continued growth potential for these companies, which could translate into positive returns for investors. The focus on EVs signals alignment with future mobility trends.
• Impact Rating: 8/10

Difficult Terms Explained

• YoY (Year-on-Year): A comparison of a value from one period to the same period in the previous year.
• GST: Goods and Services Tax, a type of indirect tax imposed in India.
• Basis Points: A unit of measure used in finance to describe small changes in interest rates or equity percentages. 100 basis points equal 1 percent.
• Standalone Revenue: Revenue generated by a company from its own operations, excluding any subsidiaries or joint ventures.
• Operating Profit Margin: A profitability ratio that shows how much profit a company makes from its core business operations for every rupee of sales.
• Net Profit: The profit remaining after all expenses and taxes have been deducted from total revenue.
• ROCE (Return on Capital Employed): A profitability ratio that measures how efficiently a company is using its capital to generate profits.
• P/E (Price-to-Earnings) Ratio: A valuation ratio that compares a company's current share price to its earnings per share. It indicates how much investors are willing to pay for each rupee of earnings.
• FY26 (Financial Year 2026): The financial year in India typically runs from April 1 to March 31. FY26 refers to the period from April 1, 2025, to March 31, 2026.