- Hyundai Motor India reported a 35% year-on-year decline in Q1 net profit, amounting to ₹888.6 crore.
- Production disruptions and the West Asia conflict significantly impacted performance, leading to a sharp decline in profitability.
- Domestic volume growth was limited to 5.4% YoY due to temporary production disruptions.
- Exports fell 19.59% to 38,708 units from 48,140 units a year earlier, reflecting the impact of the ongoing conflict.
- The June quarter was described as a challenging period for Hyundai, with multiple headwinds affecting volumes and profitability.
- A fire at a supplier's facility caused a production loss of around 13,900 vehicles in June.
- Hyundai expects to recover the lost production during the July-September quarter.
Hyundai Motor India Ltd (HMIL) reported a 35% year-on-year decline in net profit for Q1 FY27, totaling ₹888.6 crore, as production disruptions and the ongoing conflict in West Asia weighed heavily on its performance.123
Revenues also saw a slight dip, falling to ₹16,335 crore from ₹16,413 crore a year earlier, marking a 0.5% decline year-on-year.
The company faced temporary production disruptions that limited domestic volume growth to 5.4% year-on-year, while exports plummeted by 19.59% to 38,708 units due to the West Asia conflict.
Managing Director and CEO Tarun Garg acknowledged the challenges, stating, “Q1 FY27 was a challenging quarter affected by multiple headwinds impacting volumes and profitability.” He expressed optimism for recovery, noting, “With 100% normalization of production, coupled with healthy demand environment and upcoming product pipeline, recovery is likely to gain pace from Q2 onwards across both domestic and export businesses.”
Despite the setbacks, Garg reaffirmed the company’s commitment to achieving 8-10% year-on-year volume growth and an 11-14% EBITDA margin for FY27. The company aims to recover lost production during the July-September quarter after a fire at a supplier's facility caused a loss of around 13,900 vehicles in June.78
According to data from the Society of Indian Automobile Manufacturers (SIAM), Hyundai's domestic wholesales rose 5.38% year-on-year to 1,39,374 units in the June quarter from 1,32,259 units a year earlier.6
“Hyundai's revenues slightly declined to ₹16,335 crore in Q1 FY27, while EBITDA fell 31% to ₹1,511.7 crore, with margins narrowing to 9.3%. Managing Director Tarun Garg noted that the company remains committed to achieving 8-10% volume growth and an EBITDA margin of 11-14% for FY27.”
