HEROMOTOCO

April 6 (Reuters) - India’s auto dealers warned of possible supply disruptions in the near term, from the West Asia conflict, even as Indian retail vehicle sales rose 25.28% in March, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, the Federation of Automobile Dealers Associations (FADA) said on Monday.

Passenger vehicle sales rose 21.48% year-over-year in March, while two-wheeler sales rose 28.68% and commercial vehicle sales rose 15.12%, FADA said.

(Reporting by Meenakshi Maidas in Bengaluru)

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April 1 (Reuters) - Hero MotoCorp Ltd HROM.NS:

• HERO MOTOCORP - HERO MOTOCORP RECORDS 24% DISPATCH GROWTH IN Q4 2026

• HERO MOTOCORP - MARCH TOTAL SALES 598,198 UNITS

Source text: ID:nBSE5m7lJS

Further company coverage: HROM.NS

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Repeats to additional subscribers, with no change to text

By Aditi Shah

NEW DELHI, March 26 (Reuters) - India has asked automakers and parts suppliers to tighten production schedules to conserve fuel amid fears of shortages caused by disrupted oil and gas imports from the Gulf due to the Iran war, a government memo seen by Reuters shows.

The heavy industries ministry has also urged companies to shift factory operations from oil-based fuels to electricity and to use recycled aluminium or alternative materials as shortages and costs rise, according to the March 25 advisory.

For India, one of the world's largest oil and gas importers, the advisory underscores the government's mounting concern over the conflict and its disruption to energy flows, supply chains and availability of raw materials.

India's ministry of heavy industries did not immediately respond to a request for comment.

The government has already prioritised use of gas for households over industries, which get only about 80% of their average needs.

Some parts suppliers to India's leading carmakers like Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Mahindra MAHM.NS are already reporting a shortage of gas to power operations at a time when vehicle sales are booming.

The ministry wants the sector to do more.

"Wherever technically feasible, a transition from oil-based fuels to electricity may be considered. Further, production schedules may be optimised to minimise idle and standby fuel consumption," the ministry said in its note.

The government wants companies to use recycled aluminium where possible and explore the use of alternative materials for packaging and other non-critical applications to reduce "demand pressure" amid shortages which are already affecting beer makers.

"I don't know how much we can change in the factory, but the takeaway is that this war is going to go on for a long time and we should be prepared," said an executive at an Indian carmaker.

(Reporting by Aditi Shah, Editing by William Maclean)

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March 13 (Reuters) - India's domestic car dispatches to dealers rose for the fifth straight month in February, data from an industry body showed on Friday, helped by tax cuts that have lowered prices across most models.

"While the month of March has festive drivers... the recent conflict in West Asia remains a concern... could impact the manufacturing processes and exports," Rajesh Menon, Director General of Society of Indian Automobile Manufacturers (SIAM), said.

Here are some key details:

• Passenger vehicle dispatches jumped 10.6% to 417,705 units in February, compared with 377,689 units a year earlier.

• Tax reductions continue to fuel growth, extending momentum for fifth consecutive month.

• In September 2025, India slashed taxes on larger SUVs to 40% as an additional levy was dropped and on small cars and two-wheelers to 18% from 28%, helping support demand across segments.

• Vehicle sales picked up during the ongoing wedding season, supported by strong bookings, inventory build-up and new model launches.

• Domestic demand is expected to remain strong, though exports could soften on reduced shipments to Africa and the Middle East, analysts added.

• SIAM warns the ongoing Middle East crisis could hit production and exports if supply chains are disrupted.

• A shortage of gas - crucial for paint shops and component manufacturing - may affect production, analysts said, though they expect only near-term impact on Indian manufacturers due to inventory buffers.

• Domestic demand to stay robust but exports could weaken due to reduced shipments to Africa and the Middle East- Axis Capital

• India, the world's third-biggest car market, has an auto industry that accounts for 7.1% of its GDP.

• Tax cut-driven growth is likely to sustain for several quarters, a dealer's body said last week.

(Reporting by Meenakshi Maidas and Urvi Dugar in Bengaluru)

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March 12 (Reuters) - Hero MotoCorp Ltd HROM.NS:

• TAX DEMAND REDUCED FROM 1.78 BILLION RUPEES TO 270 MILLION RUPEES

Source text: ID:nBSE3qrSYs

Further company coverage: HROM.NS

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Rewrites, adds details, background, auto body president comment

By Meenakshi Maidas and Yagnoseni Das

March 5 (Reuters) - India's retail vehicle sales jumped 25.6% in February, as last year's tax cuts and a pick-up in weddings drove demand for two-wheelers and passenger vehicles, the auto dealers' body said on Thursday.

Analysts had expected double‑digit year‑on‑year growth in February, supported by price cuts, new model launches and firm rural demand, after India cut taxes on vehicles last September to boost consumption in the wake of steep U.S. tariffs.

Two-wheeler sales jumped 25% from a year ago in February, while passenger vehicle sales climbed 26.1%, the Federation of Automobile Dealers Associations said, adding that demand was supported by weddings with enquiries rising across rural and urban markets.

The dealer body's president, C.S. Vigneshwar, told Reuters that growth is likely to sustain for several quarters, if not years, noting that the industry had always expected the impact of the tax cuts to be "seismic" rather than seasonal.

Over two-thirds of dealers surveyed by the association expect retail sales to grow in March, buoyed by festival-driven demand and fiscal year-end purchases. However, dealers have flagged supply constraints for some models.

Vigneshwar said that there has been no immediate impact on logistics for vehicles from the Middle East war.

Passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a fifth consecutive month to 27–29 days from 32-34 days in January.

(Reporting by Meenakshi Maidas and Yagnoseni Das Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

Feb 13 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S JAN TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,49,616 UNITS

• SIAM - INDIA'S JAN 2-WHEELER SALES 19,25,603 UNITS

• SIAM - INDIA'S JAN 3-WHEELER SALES 75,725 UNITS

• SIAM: NEW BUDGET INITIATIVES, POLICY TAILWINDS EXPECTED TO DELIVER LONG-TERM BENEFITS, SUPPORT GROWTH IN MEDIUM TERM

((Reuters.Briefs@thomsonreuters.com;;))

** Shares of Hero MotoCorp HROM.NS down 1% at 5788.50 rupees so far on the day

** Analysts on avg expect India's top two-wheeler maker by sales to report a 14.5% y/y increase in Q3 profit to 13.78 billion rupees ($152.69 million) -- data compiled by LSEG

** Co beat Q2 profit estimates on the back of demand fueled by domestic tax cuts as well as strong exports

** Stock rated "hold" on avg by 33 analysts, median PT: 6300 rupees; rival TVS Motor TVSM.NS rated "buy" on avg, median PT: 4200 rupees -- LSEG data

** HROM gained about 39% in 2025 and is up 1.4% YTD, while TVSM rose 57% last year and has traded largely flat this year

($1 = 90.2510 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

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Jan 20 (Reuters) - Hero MotoCorp Ltd HROM.NS:

• GETS TAX DEMAND OF 49.7 MILLION RUPEES WITH PENALTY AND INTEREST

Source text: ID:nBSE24y14f

Further company coverage: HROM.NS

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Jan 13 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S DEC TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,99,216 UNITS

• SIAM - LOOKING AHEAD, INDUSTRY EXPECTS POSITIVE MOMENTUM TO CONTINUE WELL INTO 2026

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S DEC DOMESTIC 3-WHEELER SALES 61,924 UNITS

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S DEC DOMESTIC 2-WHEELER SALES 15,41,036 UNITS

• SIAM - WHILE REMAINING WATCHFUL OF GEOPOLITICAL DEVELOPMENTS, INDUSTRY EXPECTS FY2025–26 TO CLOSE ON POSITIVE GROWTH TRAJECTORY

Source text: [ID:]

Further company coverage: ASOK.NS

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Jan 8 (Reuters) - Valeo SE VLOF.PA:

• VALEO AND HERO MOTOCORP ANNOUNCE PARTNERSHIP

Source text: https://tinyurl.com/zh45b2x4

Further company coverage: VLOF.PA

(Gdansk Newsroom)

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Jan 6 (Reuters) - INDIA AUTODEALERS BODY FADA:

• DEC’25 AUTO RETAIL AT 20,28,821 UNITS

• DEALER SENTIMENT REMAINS FIRMLY POSITIVE, WITH OUR SURVEY INDICATING 70.48% EXPECTING GROWTH

• OVER NEXT 3 MONTHS, RETAIL OUTLOOK REMAINS DECISIVELY UPBEAT

• DEC’25 AUTO RETAIL UP 14.63% YOY

((Reuters.Briefs@thomsonreuters.com;))

Jan 1 (Reuters) - Hero MotoCorp Ltd HROM.NS:

• REPORTS 40% Y/Y GROWTH IN DECEMBER DISPATCHES

Source text: ID:nBSE1dlv6F

Further company coverage: HROM.NS

((Reuters.Briefs@thomsonreuters.com;;))

** Two-wheeler maker Hero MotoCorp's HROM.NS shares rise as much as 2.37% to 6,016 rupees, a 14-month high

** Stock advances after Macquarie upgrades it to "outperform" from "neutral," citing a likely uptick in both motorcycles and scooters driven by GST cuts and new launches

** Macquarie also lifts its price target to 6,793 rupees from 6,094, implying a 16.7% upside

** Brokerage says Hero's ICE motorcycle market share is stabilising while new scooters are gaining strong traction

** The upgrade follows J.P. Morgan's move on Wednesday to raise the stock to "overweight" from "neutral", flagging stabilising market share, an improving earnings outlook, tax cuts and rising EV penetration

** J.P. Morgan also increases its target to 6,850 rupees from 5,640 rupees

** Hero MotoCorp is up 3.5% in two sessions and has gained 9.1% in five sessions after a September-quarter profit beat

** The stock is up 41.2% in 2025, outperforming the auto index's .NIFTYAUTO 20.6% rise

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

** India's Hero Motocorp HERO.NS rises 3.55% to 5,735 rupees

** Analysts praise Q2 margin expansion but some voice caution on sustainability of results

** EBITDA margin grew 55 basis points y/y to 15%

** Motilal Oswal says, it expects co to deliver a volume CAGR of ~6% over FY26-28, driven by new launches and a ramp-up in exports

** Nirmal Bang says HERO outperformed industry during the festive season, gaining 40 bps market share

** Adds, sustained volume growth, rising premium mix and expanding EV portfolio to strengthen co's leadership in two-wheelers

** However, Antique Stock Broking says stock's recent rally has priced in near-term optimism

** Brokerage says awaiting clearer evidence of sustained EV profitability before upgrading stock to 'accumulate' from 'hold'

** Ambit says recent uptick in first-time buyers, market share gains in EV segment and export momentum may not be sustainable

** HERO rated 'hold' on avg by 31 analysts; median PT at 5,823.5 rupees- data compiled by LSEG

** YTD, stock up ~38%

(Reporting by Ananta Agarwal in Bengaluru)

((Ananta.Agarwal@thomsonreuters.com))

Nov 13 (Reuters) - Hero MotoCorp HROM.NS, India's top two-wheeler maker by sales, reported a better-than-expected quarterly profit on Thursday, on the back of demand fueled by domestic tax cuts as well as strong exports.

The maker of the Splendor motorcycle posted a 15.7% rise in quarterly profit to 13.93 billion rupees ($158.5 million) in the July-September quarter, topping analysts' estimates of 13.78 billion rupees, according to data compiled by LSEG.

With global forays and a push into electric mobility, Hero is positioning for sustained growth in overseas markets and emerging segments.

Hero has partnered with distributors in Europe to expand its overseas shipments. In October, it partnered with UK-based distributor MotoGB and French distributor GD France after announcing it will begin to sell its products in Italy and Spain.

Sales for the three months ended September 30 rose 11.25% to 1.69 million vehicles, driven by a 77% rise in exports.

Domestic sales were also boosted by lower tax on motorcycles of engine capacities up to 350cc which are the bulk of Hero's sales.

September's domestic sales climbed about 25% from the previous month to 647,582 units, buoyed by festive-season demand and strong momentum in the entry-level, deluxe and scooter categories.

The two-wheeler maker's revenue rose about 16% to 121.26 billion rupees, while its total expenses increased about 15%.

Hero's earnings before interest, taxes, depreciation and amortisation margin grew by 55 basis points year-on-year to 15% during the quarter.

Analysts anticipated the margin to improve, mainly by stronger operating leverage, though partly offset by higher launch-related costs following the introduction of three new models in the reported quarter.

Rivals Bajaj Auto BAJA.NS and TVS Motor TVSM.NS also posted an export-driven profit rise in the reported quarter.

($1 = 87.8950 Indian rupees)

(Reporting by Urvi Dugar and Anuran Sadhu in Bengaluru; Editing by Krishna Chandra Eluri)

((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))

Nov 6 (Reuters) - India's Amara Raja Energy and Mobility AMAR.NS reported a bigger-than-expected rise in second-quarter profit on Thursday, driven by increased demand from automotive manufacturers following India's tax reforms.

The company, which makes Amaron-branded car batteries, reported profit rose 25.6% to 3.02 billion rupees ($34.36 million) in the quarter ended September.

Analysts, on average, expected 2.12 billion rupees, according to data compiled by LSEG.

India announced tax cuts on hundreds of consumer items in September, ranging from soaps to small cars to spur domestic demand. As a result, Indian dealers' passenger vehicles and two-wheeler sales to customers recorded upbeat growth towards the end of the quarter.

Analysts noted that battery demand from original equipment manufacturers (OEMs) had risen following recent reductions in consumption tax.

Amara Raja, which counts top automakers, including Bajaj Auto BAJA.NS, Hero MotoCorp HROM.NS, Maruti Suzuki MRTI.NS as its clients, derives around 70% of its revenue from the automotive battery business.

The Hyderabad-based company's revenue from operations climbed 8% to 33.88 billion rupees.

The company, which also makes industrial batteries for sectors such as telecommunications and railways, said cost of materials consumed grew 11.8% in the quarter, pushing total expenses up by 10.5% to 31.29 billion rupees.

Analysts also noted that the company was affected by higher power costs.

Rival Exide Industries EXID.NS is yet to report its quarterly results.

($1 = 87.8950 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Janane Venkatraman)

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** Hero MotoCorp HROM.NS falls 3.2% to 5,365 rupees; top pct loser on Nifty auto index .NIFTYAUTO, which is down 0.5%

** Two-wheeler maker's total October sales down 6.4% y/y due to 8% y/y drop in domestic sales; exports up ~43% y/y

** Rival Bajaj Auto BAJA.NS logs 4% y/y rise in October 2-wheeler sales

** Morgan Stanley says its volume estimates for Hero MotoCorp imply 16% y/y growth for rest of FY26

** HROM and BAJA both rated "hold" on average, per data compiled by LSEG

** YTD, HROM up ~33%

(Reporting by Yagnoseni Das in Bengaluru)

((Yagnoseni.Das@thomsonreuters.com;))

Oct 13 (Reuters) - Hero MotoCorp Ltd HROM.NS:

• ANNOUNCES ENTRY INTO ITALY

• PELPI INTERNATIONAL TO MANAGE HERO MOTOCORP DISTRIBUTION IN ITALY

Source text: ID:nBSE1xNzrl

Further company coverage: HROM.NS

((Reuters.Briefs@thomsonreuters.com;))

Adds details paragraph 2 onwards

Oct 7 (Reuters) - Indian dealers' auto sales grew 5.2% year-on-year in September, with upbeat growth across two-wheelers and passenger vehicles, as tax cuts boosted demand during the festive season, the Federation of Automobile Dealers Associations said on Tuesday.

While sales were muted in the first three weeks of September, they surged after September 22, when the revised goods and services tax rates took effect, the auto dealers association said.

Two-wheeler sales climbed 6.5% from a year earlier, while passenger vehicle sales grew 5.8%.

Dealers posted record high sales during the nine-day Navratri festival, the association said, with a 34% year-on-year jump during the period, as a wave of new customers entered showrooms and existing ones upgraded their vehicles, taking advantage of lower taxes and festive schemes.

The auto dealers body expects an above-normal monsoon, strong harvest, and steady lending rates to boost purchasing power of consumers, driving demand.

It also expects "peak sales" during the Diwali festival in October, when Indians typically tend to make high-value purchases.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Ronojoy Mazumdar)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

Aug 22 (Reuters) - India's National Stock Exchange (NSE) said on Friday it will add hospital-chain operator Max Healthcare MAXE.NS and Indigo-parent InterGlobe Aviation INGL.NS to its benchmark Nifty 50 index .NSEI effective September 30.

IndusInd Bank INBK.NS and Hero MotoCorp HROM.NS will be removed from the index as part of the NSE's semi-annual rebalancing, the exchange said.

(Reporting by Hritam Mukherjee and Urvi Dugar in Bengaluru; Editing by Leroy Leo)

((UrviManoj.Dugar@thomsonreuters.com;))

Adds analyst comment in paragraph 6, shares in paragraph 8-9, sector background in paragraphs 7,10

By Nandan Mandayam and Nishit Navin

Aug 21 (Reuters) - Hindustan Unilever HLL.NS named former Hero MotoCorp HROM.NS CEO Niranjan Gupta as its finance chief on Thursday, succeeding Ritesh Tiwari who will move to a global role at parent Unilever ULVR.L.

Gupta will take charge as CFO of consumer goods maker Unilever's Indian unit from November 1.

He began his career at Hindustan Unilever in 1994, spending 12 years there before a nearly seven-year stint at Unilever, according to his LinkedIn profile.

Gupta's most recent stint was at motorcycle maker Hero MotoCorp, where he spent nearly eight years and was the CEO from May 2023 to April 2025.

Tiwari will relocate to London to assume the role of Global Head of M&A and Treasury at Unilever.

The management shake up comes over a month after the company named Priya Nair as its new chief executive, with Rohit Jawa stepping down before the completion of his five-year term as CEO.

"The CFO change aligns with the broader leadership reshuffle underway, especially with a new CEO coming in. HUL has underperformed on growth over the past couple of years, which has made a leadership overhaul necessary," said Akshay D'Souza, an independent consumer goods consultant.

HUL, which is home to brands such as Dove soap and Surf Excel detergent, has been under pressure from dull urban consumption trends for several quarters. But analysts see the company's quarterly results last month as reflective of a gradually easing environment.

Shares of HUL have risen 13% since Tiwari took charge as CFO in 2021, trailing a basket of consumer goods stocks .NIFYFMCG which rose 50% in the same period.

HUL's stock has jumped 10% since naming Nair as its new CEO on July 10, outperforming the Nifty FMCG index's 1% gain.

The Indian federal government's plan to lower and simplify tax rates on several goods is also expected to benefit consumer goods firms like HUL by driving demand for everything from jams to personal care goods.

(Reporting by Nandan Mandayam and Nishit Navin in Bengaluru; Editing by Krishna Chandra Eluri)

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Rewrites throughout, updates stock moves

By Kashish Tandon and Chandini Monnappa

Aug 18 (Reuters) - Indian auto and consumer stocks rallied on Monday, with the auto index .NIFTYAUTO jumping nearly 5% to a 10-month high after the government's plans of sweeping tax cuts, including lower goods and services tax (GST) on small cars.

The government's plan to lower GST on small cars to 18% from 28%, among other changes, as part of tax reforms unveiled by Prime Minister Narendra Modi on Friday, is expected to spur demand and boost consumer spending.

The plans are likely to be announced by Diwali, a major, five-day Hindu festival in October and India's biggest shopping season as households traditionally splurge, leading to the country's consumption cycle peaking around the festival.

"These are strong tailwinds for the market with potential to take it higher," said VK Vijayakumar, chief investment strategist at Geojit Investments, calling the timing of the next major GST reforms a "big positive".

"Sectors like autos and cement, which are presently in the 28% tax slabs, are expected to benefit," he said.

Urban consumers have been tightening their belts in recent quarters, squeezed by high living costs and sluggish income growth. A cut in GST on small cars, the auto-market's most price-sensitive segment, could fire up festive season demand, giving middle-class buyers a break.

Auto stocks .NIFTYAUTO led sectoral gains on the Nifty 50 .NSEI index, and were set for their best day since June 5, 2024.

Maruti Suzuki MRTI.NS and Hyundai Motor India HYUN.NS jumped 8% and 9%, respectively, to a record high.

Additionally, the simpler two-rate structure - slabs of 5% and 18%, with the 12% and 28% slabs scrapped - would make a host of products cheaper, from butter and fruit juices to dry fruits, offering a lift to consumer goods firms and shoppers.

Consumption stocks such as Hindustan Unilever HLL.NS, Nestle India NEST.NS and Dabur DABU.NS gained between 4% and 7%, powering the FMCG index .NIFTYFMCG 1.8% higher.

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

** Shares of Hero MotoCorp HROM.NS up 7.6% this week, set for best weekly gain since week ended May 12

** Stock top weekly gainer on benchmark Nifty 50 .NSEI, which is down 0.56% for the week

** Nifty Auto index .NIFTYAUTO up 0.7% for the week

** Gains driven by the two-wheeler maker's first-quarter profit marginally rising, beating analysts estimate of a fall in profit, as higher exports offset weak domestic sales

** Peers, Bajaj Auto BAJA.NS and TVS Motor TVSM.NS also topped profit estimates this week

** BAJA and TVSM up 2.2% and 4.4% for the week, respectively

** Avg rating on HROM and BAJA at "hold", TVSM at "buy" - data compiled by LSEG

** YTD, HROM and TVSM up ~11% and ~26% respectively, BAJA down ~7%

(Reporting by Anuran Sadhu in Bengaluru)

((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))

Aug 7 (Reuters) - India's upcoming festive season is expected to lift near-term sentiment among auto dealers, but U.S. tariffs could dent consumer confidence, prompting higher household savings and weighing on discretionary spending, including vehicles, the Federation of Automobile Dealers Association (FADA) said on Thursday.

Vehicle dealers expect major festivals, including Rakhi, Janmashtami, Independence Day and Ganesh Chaturthi, along with targeted promotional schemes and healthy stock levels to drive sales.

However, the anticipated wealth erosion from fresh tariffs by the U.S. could erode consumer confidence, trigger a precautionary rise in household savings and exert pressure on discretionary spending, including on vehicles, FADA said.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

((Chandini.M@thomsonreuters.com; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

** Shares of Hero MotoCorp HROM.NS down 1.2% at 4,488.9 rupees ahead of first-quarter results

** India's top two-wheeler manufacturer by sales is seen reporting its first profit fall in nearly 3 years

** Analysts see HROM's Q1 profit declining 5.3% to 10.63 billion rupees ($121.2 million), revenue to drop 3% to 98.42 billion rupees - data compiled by LSEG

** HROM's sales dropped 11% during the quarter, dragged by a slump in domestic sales

** Exports, which jumped 26%, could cushion earnings fall - analysts

** Analysts tracking stock rate it "hold" on average, median PT is 4,614 rupees - data compiled by LSEG

** Stock up 4.1% this year, just ahead of Nifty Auto .NIFTYAUTO index's ~4% climb this year

($1 = 87.6790 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

Aug 5 (Reuters) - Castrol India CAST.NS reported a 5.1% rise in second-quarter profit on Tuesday, fuelled by steady demand for its automobile and industrial lubrication products.

The engine oil and industrial lubricants maker, majority-owned by BP BP.L, posted a profit after tax of 2.44 billion rupees ($27.8 million) for the quarter ended June 30, up from 2.32 billion rupees a year ago.

Revenue from operations grew 7.1% to 14.97 billion rupees, while total expenses rose 6.6%, driven by a 3.2% increase in raw material costs.

India's retail vehicle sales rose nearly 5% year-on-year during in the quarter, lifting demand for companies like Castrol, which generates roughly 80% of its revenue from the auto sector.

Two-wheeler sales were up 5.02%, while passenger vehicles and commercial vehicle sales grew by about 3% and 1%, respectively.

Castrol India supplies lubricants to major auto manufacturers in the country, including Maruti Suzuki MRTI.NS and Hero MotoCorp HROM.NS.

In its latest annual report, the company detailed plans to expand its geographic reach by broadening its product portfolio, enhancing its workshop network and investing in premium lubricant brands.

"Industrial is a long-term growth area for us, and we’ve seen encouraging traction in the first half," said Managing Director Kedar Lele in a statement.

Shares of the company are up 1.6% higher after results were reported, having gained 9.3% in the reported quarter.

In comparison, shares of smaller peer Gulf Oil Lubricants India GOLU.NS jumped 10.2% in the same period.

($1 = 87.7940 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

Recasts paragraph 1, adds details from earnings call

By Meenakshi Maidas

Aug 4 (Reuters) - Indian e-scooter maker Ather Energy ATHR.NS reported a narrower first-quarter loss on Monday on higher demand, and said it expects a week of "potential business impact" only in the second quarter due to China's rare-earth magnet export ban.

Ather expects around a week's worth of a supply gap to dealers due to China's ban but aims to manage the impact with existing inventory, CEO Tarun Mehta said in post-earnings call.

The company is also exploring alternatives, including a shift to more widely available light rare earth magnets, which remain unrestricted, he added.

China, which supplies around 90% of the world's rare earth magnets, imposed the export ban in April.

Last week major Indian carmakers Mahindra MAHM.NS, Hyundai India HYUN.NS shrugged off medium-term issues from the export ban, with Mahindra saying it was using alternatives such as light rare-earths and ferrites.

Ather Energy, which makes the popular "Rizta" e-scooter, said its losses narrowed to 1.78 billion rupees ($20.3 million) in the quarter ended June 30 from 1.83 billion rupees a year ago, helped by sales that grew nearly two-fold to 46,078 units.

Backed by Hero MotoCorp HROM.NS, Ather entered India's electric vehicle market in 2018 as an early mover, but has since lost ground to rivals such as Ola Electric OLAE.NS and legacy players with stronger finances and a broader reach.

Its revenue surged 78.8% on-year to 6.45 billion rupees, but rising material costs pushed overall expenses 54.4% higher.

Its adjusted gross margin rose to 23% from 19% a year ago, driven by non-vehicle revenue such as warranty programs, software and accessories such as its "Halo" helmets.

Ather's shares rose as much as 19.4% to a record high of 414.65 rupees on Monday after its quarterly results and closed 14% higher.

($1 = 87.6320 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Nivedita Bhattacharjee, Mrigank Dhaniwala and Sonia Cheema)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))