• Powertrain margin profile: Powertrain solutions contribute roughly 55% of total revenue and 80% of EBITDA with 20% to 25% margins, and the vertical is projected to sustain strong expansion over the next three years.
• EV revenue expansion: Electric vehicles generated 23% of total revenue and 40% to 45% of powertrain revenue last year, with EV contribution set to rise further as 100% of Indian R&D and 60% to 70% of UK R&D projects are EV-focused.
• Capex deployment timeline: Hero Motors plans to invest ₹200 crore in capex over the next three years to generate ₹300 to ₹400 crore in revenue, following ₹350 to ₹400 crore spent over the prior three years on projects with 8 to 12-year life cycles.
• Customer concentration de-risking: Revenue dependence on the largest single customer has reduced to around 35% as the high-growth powertrain division continues to outpace the legacy alloy and metallics business.