Hyundai India profit falls despite sales growth momentum

Mumbai

Hyundai Motor India Limited reported a 22.2% year-on-year decline in consolidated net profit for the fourth quarter of FY26, falling to ₹1,255.6 crore from ₹1,614.3 crore in the same period last year. The drop came despite steady revenue growth and strong sales performance during the quarter.

Revenue from operations rose 5.4% year-on-year to ₹18,916.15 crore, supported by improved volumes and product demand. However, rising costs weighed heavily on profitability as total expenses increased by 10% to ₹17,571.7 crore, driven largely by inventory adjustments and higher operational inputs.

Operational earnings also came under pressure, with EBITDA declining 22.4% to ₹1,966 crore. The EBITDA margin contracted sharply to 10.4%, down from 14.1% in the corresponding quarter of the previous year, reflecting weaker cost absorption and margin compression.

Despite financial pressure, the company reported strong underlying demand trends. Hyundai Motor India recorded its highest-ever quarterly domestic sales in Q4 FY26, with wholesale volumes rising 8.7% year-on-year. Growth was supported by market initiatives, product updates, and demand tailwinds linked to GST-related reforms.

The company also reported significant progress in rural markets, with rural penetration reaching a record 25%. Its compressed natural gas (CNG) vehicle portfolio contributed 18% of sales, reflecting growing consumer preference for lower-cost fuel alternatives.

Exports remained a bright spot, growing 9.4% year-on-year in the quarter and 16.4% for the full fiscal year FY26, despite global geopolitical uncertainties.

Looking ahead, the company expects volume growth of 8–10% in FY27, driven by new product launches, network expansion, and diversification across markets.

Managing Director and CEO Tarun Garg said the company successfully navigated a challenging environment while maintaining focus on “quality of growth,” supported by reforms, exports, and strategic product actions.