Hyundai Motor India reported a 35.1% year-on-year decline in consolidated net profit for the first quarter of FY27, hurt by a supplier fire that disrupted production, lower exports amid geopolitical tensions in West Asia, higher commodity costs and capacity stabilisation expenses. Despite the weak quarter, the automaker said it has already recovered most of the production lost in June and reiterated its guidance of 8-10% volume growth, supported by festive season demand and upcoming launches.
The company posted a consolidated net profit of ₹888.6 crore for the April-June quarter, down from ₹1,369.2 crore a year earlier, missing Bloomberg’s estimate of ₹1,115 crore.
Revenue from operations declined 0.5% to ₹16,334.6 crore from ₹16,412.9 crore a year earlier, though it remained above Bloomberg’s estimate of ₹16,215 crore. EBITDA fell 31% to ₹1,511 crore, while EBITDA margin contracted to 9.3% from 13.3%. Total expenses rose 4.2% to ₹15,407.4 crore, weighing on profitability.
Speaking during the post-results conference call, Managing Director Tarun Garg said the company lost production of around 13,900 vehicles after a fire at one of its supplier facilities in June, but has already recovered most of the lost output during July. The remaining production loss will be fully recovered during the second quarter, he said.
“The temporary production disruption faced during June is behind us,” Garg said, adding that Hyundai remains confident of achieving its previously announced guidance of 8-10% volume growth and maintaining EBITDA margins in the 11-14% range during FY27.
Domestic sales rose 5.4% year-on-year to 139,374 units during the quarter, while total sales fell 1.3% to 178,082 units as exports declined to 38,708 units from 48,140 units a year earlier.
Management attributed the export weakness to the continuing impact of the West Asia conflict, particularly in the Middle East, along with the June production disruption. However, it expects exports to recover from the current quarter, aided by shipments of the new Venue, Verna PE and Exter PE, including the left-hand-drive version of the Exter.
Capacity Expansion
Hyundai also announced that it will begin third-shift operations at its Pune manufacturing facility from October 2026, advancing its expansion plan by nearly two years. The move will increase annual capacity at the plant from about 120,000 units to as much as 170,000 units.
The company has earmarked ₹7,500 crore of capital expenditure for FY27, with about 45-50% allocated to new products and around 30% for plant expansion and upgrades.
On the product front, Hyundai said it remains on track to launch a new internal combustion engine mid-size SUV during the festive season, followed later in the fiscal by a dedicated electric vehicle. Management expects both products, positioned in high-volume segments, to support market share gains.
The company also guided for an improvement in domestic market share in FY27 over the roughly 12.4% recorded in FY26, driven by these launches.
SUVs accounted for 70% of Hyundai’s domestic sales mix during the quarter. The company also reported its highest-ever quarterly CNG contribution of 18.2%, with the Aura deriving 95% of its sales from CNG variants and the Exter recording a 32% CNG mix. Hyundai reiterated its multi-powertrain strategy spanning petrol, diesel, CNG, hybrid and electric vehicles, and plans to have six CNG models by 2030.
Rural demand continued to outperform urban markets, with rural contribution to domestic sales rising to a record 25.9% from 22.6% a year earlier. Rural sales grew 23.2%, compared with 2.8% growth in urban markets.
On regulations, Hyundai said its assessment indicates it will comply with CAFE II norms for FY23-FY27 under the revised draft framework without incurring any penalty. It also expressed confidence that its planned expansion in EVs, CNG vehicles and hybrids would enable compliance with proposed CAFE III norms without changes to its product strategy.
Hyundai also said AI is increasingly being integrated across sales, service, manufacturing and in-vehicle user experiences.
The board approved the appointment of Mukundan MS as Whole-time Director and Chief Manufacturing Officer with effect from September 1, 2026, subject to shareholder approval. It also noted the retirement of Gopalakrishnan CS from the role effective August 31 and fixed August 5 as the record date for the previously announced final dividend of ₹21 per equity share.
Hyundai Motor India shares ended Thursday’s session 2.38% higher at ₹2,040.30 apiece on the National Stock Exchange.