Prime Highlights
- Hyundai Motor India retained its FY27 guidance of 8%–10% volume growth and expects to outperform the industry in the second half of the year.
- Analysts remained positive on the stock, citing improving exports, new model launches and stable long-term earnings potential.
Key Facts
- Hyundai Motor India is one of India’s leading passenger vehicle manufacturers, serving both domestic and international markets.
- The company reported a 35% decline in first-quarter net profit to ₹889 crore, while domestic sales grew 5.4% despite weaker exports.
Background
Shares of Hyundai Motor India rose by more than 7%, following the company’s confirmation of its forecast for 8%-10% volume growth for the year, along with its optimism about performance improvement in FY27. The auto major expects growth from both its home and export markets, which will be driven by the launch of new cars and stronger export demand. The company is looking forward to retaining an EBITDA margin of 11%-14%.
Export volumes are expected to recover in the quarters ahead. It plans to increase shipments through new models and expand its presence in Central and South American markets. The management also expects the company to grow faster than the overall passenger vehicle industry in the second half of FY27 and improve its market share from FY26. It believes new launches will help keep discount levels under control while supporting sales.
Brokerages remained positive on the stock despite weak quarterly earnings. CLSA retained its outperform rating, saying price increases, lower discounts and cost control helped protect margins from rising costs. Nomura maintained its buy rating and said the company offers attractive long-term growth potential, supported by expected earnings growth and reasonable valuations. Most analysts covering the stock continue to recommend buying it.
In the June quarter, Hyundai Motor India reported a 35% fall in net profit to ₹889 crore, while revenue slipped 0.5% to ₹16,334 crore. EBITDA declined 31% to ₹1,511 crore and the margin narrowed to 9.3%. Total sales fell 1.3%, mainly due to weaker exports, although domestic sales increased 5.4%. The company also fixed the first week of August as the record date for its final dividend of ₹21 per share.