Hero MotoCorp (HMCL) has topped our estimates in 2QFY17, aided by higher-thanexpected performance on operating front on account of robust 15.8% yoy rise in volume resulting in higher-than-expected operating leverage benefit. Revenue Tops Our Estimates by 1.6% Revenue rose by 14.5% yoy to Rs78.0bn (vs. our estimate of 1.6%) owing to strong 15.8% yoy growth in volume. On the back of 176bps yoy growth in gross margin, strong volume growth and robust operating leverage, HMCL's EBITDA margin expanded by 150bps yoy to 17.6% (vs. our estimate of 16.4%). Other income increased by 36.6% yoy to Rs1.5bn (vs. our estimate of Rs1.3bn) during the quarter. Beating our estimate by 10.2%, HMCL's...