• EV business share: EV products contribute 23% of total revenue and over 40% within the powertrain solutions segment, driven by a 100% EV bike powertrain vertical and EV-heavy R&D pipelines in India and the UK.
• Margin mix shift: Operating margins expanded from 11.8% to 13.5% due to an increasing share of powertrain solutions, which deliver 18% to 25% margins compared to 6% to 7% in the alloys and metallics business.
• CapEx and revenue: Hero Motors is allocating ₹200 crore of its ₹600 crore fresh issue proceeds to powertrain capacity expansion over the next three years, expecting an asset turn of 1.5x to 2x to generate ₹300 crore to ₹400 crore in incremental revenue.
• Debt reduction targets: The company plans to use ₹190 crore of IPO proceeds to reduce its ₹400 crore total debt to approximately ₹200 crore, significantly lowering finance costs while funding further debt optimization through internal profits.
• Inorganic growth pipeline: Up to 25% of fresh issue proceeds may be allocated to potential acquisitions across India, the UK, and Europe, with management indicating the possibility of closing a deal before the end of FY27.