Hyundai Motor India’s profit rises 14.3% to ₹1,572 crore driven by better export contribution and cost reduction in materials
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HMIL's revenue marginally increased by 1.2% to ₹17,460 crore. | Credits: Sanjay Rawat
Hyundai Motor India’s profit rises 14.3% to ₹1,572 crore driven by better export contribution and cost reduction in materials
Hyundai Motor India Limited reported a 14.3% rise in second-quarter profit to ₹1,572 crore, driven by a favorable export mix and cost reductions. Exports now account for 27% of sales, with SUV sales dominating at 71%. Despite challenges in domestic sales and competition, the company saw strong rural market penetration and a slight revenue increase.
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Despite revenue being flattish, the Indian unit of the South Korean carmaker was able to deliver improved margins and profitability.
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HMIL's revenue marginally increased by 1.2% to ₹17,460 crore. | Credits: Sanjay Rawat
South Korean carmaker Hyundai Motor India Limited (HMIL) said on Thursday that its second-quarter profit rose 14.3% to ₹1,572 crore, driven by a favourable product and export mix. Export volumes now account for 27% of overall sales volumes and have increased 21.5% year-on-year to 51,400 units.
Its revenue marginally increased by 1.2% to ₹17,460 crore. HMIL’s Ebitda grew 10.1% in the quarter to ₹2,428 crore. The Ebitda margin has also improved, from 12.8% in the year-ago period to 13.9% in the reporting quarter.
Domestic sales, which have been a pain point for Hyundai Motor India lately, remain a laggard, down 6.8% year over year to 1,39,521 units. Its total sales were flat at 1,90,121 units. However, Unsoo Kim, the outgoing MD and CEO of HMIL, said the company witnessed overwhelming demand in the last week of the quarter—when the GST reforms were implemented—which offset customer purchases being deferred during the quarter.
HMIL has been facing intense competition from homegrown carmakers Tata Motors and Mahindra & Mahindra. However, despite the GST rate cuts, analysts have expressed scepticism on HMIL’s resurgence to claw back market share. Hyundai Motor India’s high revenue dependence on large SUVs, exports, parts, and spares—which cumulatively make up for 70% of its sales revenue—can see its benefit being limited from the GST rate cuts, which have primarily focused on addressing the affordability challenge for compact cars.
The rural market remains a stronghold for HMIL, with the company recording its highest-ever rural penetration of 23.6% in the second quarter. SUVs continue to account for a quantum of HMIL’s sales, making up 71% of volumes in the reporting quarter at 99,220 units. However, it should be noted that SUV sales in the second quarter of last year were 1,02,636 units.
Sales of hatchbacks have fallen from 29,668 units in the second quarter of FY25 to 22,620 units in the second quarter of FY26, making up 16% of the volumes. Sedans, on the other hand, saw a marginal increase in volumes to 17,681 units from 17,335 units in the year-ago period, making up 13% of the total volumes.
In terms of fuel mix, petrol is predominantly the consumer’s choice at HMIL, contributing to 61% of the sales volumes. However, diesel has grown to 23% from 20% in the year-ago period. CNG has grown to 15% from 13% in the year-ago period, and EVs have grown from 0.1% in the year-ago period to 1.1% in the second quarter.
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HMIL shares closed 2.69% higher on Thursday at ₹2,421.10 apiece.
