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Hero MotoCorp: Dividend Powerhouse Shifting Gears
27 Jun
Summary
- Hero MotoCorp increased its total dividend to ₹185 per share in FY26.
- The company maintains a debt-free balance sheet with strong return ratios.
- Hero is actively expanding its electric vehicle lineup and production capacity.
Hero MotoCorp, the global leader in motorcycle and scooter manufacturing, has raised its total dividend payout to ₹185 per share for FY26, a notable increase from the previous year. This consistent shareholder return is underpinned by a robust financial foundation.
The company maintains a debt-free balance sheet, which contributes to its strong return on capital employed (ROCE) of 34.1% and return on average equity (ROE) of 25.9%. This financial strength enables Hero MotoCorp to consistently generate free cash flow.
Hero MotoCorp's commitment to dividends is further evidenced by its stable dividend payout ratio, ranging between 64% and 82% over the last five financial years. In FY26, the company generated ₹7,321.3 crore in free cash flow, comfortably covering its dividend payments.
Strategically, Hero MotoCorp is investing significantly in its electric vehicle (EV) segment, with plans to double VIDA EV production capacity before the end of FY27. This expansion, along with investments in its parts business and international markets, positions the company for sustained future growth.
