Hero MotoCorp receives ESG score of 72 from NSE Sustainability Ratings

Hero MotoCorp Ltd has received an Environmental, Social and Governance score of 72 from NSE Sustainability Ratings & Analytics, a SEBI-registered Category I ESG ratings provider.

The company received the notification on October 16, 2026. It said the score was independently assigned using publicly available information relating to Hero MotoCorp for FY2025-26 and that it neither commissioned nor engaged NSE Sustainability Ratings & Analytics for the assessment

The disclosure adds an external ESG data point for India’s largest motorcycle and scooter maker at a time when it is expanding beyond its core commuter motorcycle franchise into electric vehicles, premium products, exports and parts and accessories. ESG ratings are typically used by institutional investors and other stakeholders as one input to assess corporate disclosures and practices relating to environmental impact, workforce and supply-chain management, governance and oversight. Hero MotoCorp did not provide a break-up of the score across these parameters.

The assessment comes after a period of expanding operational activity and investment by the company. Hero MotoCorp has eight manufacturing plants in India and operations in overseas markets, including Colombia and Bangladesh. Its supply chain is also important to its ESG profile because two-wheeler production relies heavily on purchased raw materials, components, freight and a large vendor network.

The company has been increasing its focus on electric mobility through its VIDA scooter range, while also developing electric motorcycles with Zero Motorcycles. During the June 2026 quarter, VIDA retail volumes rose to 57,058 units from 21,652 units a year earlier, according to the company’s investor presentation. Hero MotoCorp said its EV market share increased to 10.9 per cent from 6.9 per cent over the same period.

Its broader portfolio shift is also visible in scooters, premium motorcycles, exports and the parts, accessories and merchandise business. Management has been adding manufacturing capacity for scooters and EVs, while targeting higher parts availability through the planned Global Parts Centre 2.0 at Tirupati.

Financially, the company reported consolidated revenue from operations of Rs 47,411.24 crore in FY2025-26, up from Rs 40,923.42 crore in the previous year. Consolidated profit after Tax rose to Rs 5,775.70 crore from Rs 4,375.81 crore.

The latest quarterly data shows that growth has continued, though margins remain a watchpoint. Net sales for the June 2026 quarter increased 34.94 per cent year-on-year to Rs 13,126.35 crore, while profit after tax rose 35.83 per cent to Rs 1,461.82 crore. However, operating margin excluding other income declined to 13.30 per cent from 14.52 per cent a year earlier, reflecting commodity and cost pressures highlighted by management.

For investors, the ESG score provides an independently generated reference point, but it does not by itself indicate financial performance or future compliance outcomes. Its significance will depend on whether Hero MotoCorp can sustain disclosure quality and execute its transition towards EVs, premium mobility and wider global operations while managing input costs and supply-chain complexity.

As of 3:00 pm on October 19, 2026, Hero MotoCorp shares were trading at Rs 5,211.15. The stock was 0.36 per cent below its previous close of Rs 5,230.00 and traded about 17.9 per cent below its 52-week high of Rs 6,351.45.

Disclaimer: The article is for informational purposes only and not investment advice.