Hyundai Motor India Ltd. reported a 22.2% year-on-year (YoY) decline in consolidated net profit for Q4FY26 at ₹1,255.6 crore, compared with ₹1,614.3 crore in the same quarter last year. The result also missed Bloomberg’s estimate of ₹1,268 crore.
The decline was driven by higher commodity costs and a shift in the sales mix toward lower-margin sedans and hatchbacks instead of high-margin SUVs, along with intensifying competition from domestic players. These factors also contributed to Hyundai slipping to fourth position in FY26 from second in the previous year.
Margin Compression
Revenue from operations rose 5.4% YoY to ₹18,916.2 crore from ₹17,940.3 crore, but it missed Bloomberg’s estimate of ₹19,197 crore. EBITDA declined 22.4% to ₹1,966 crore from ₹2,532.7 crore, while EBITDA margin narrowed sharply to 10.4% from 14.1% a year earlier.
For FY26, Hyundai’s revenue increased 2.3% to ₹70,763 crore from ₹69,192.9 crore in FY25. Net profit declined 3% to ₹5,431.2 crore from ₹5,640.2 crore in the previous year. EBITDA margin also narrowed to 12.2% from 12.9%, impacted by commodity inflation and capacity stabilisation costs.
On the volume front, total sales rose 1.7% YoY to 775,031 units. Export volumes grew 16.4% to 190,125 units, while domestic sales declined 2.3% to 584,906 units. The company said demand recovery in the second half of the fiscal year was partly supported by GST reductions in select vehicle categories.
SUVs continued to dominate Hyundai’s portfolio, accounting for 68% of domestic sales in FY26, led by models such as the Creta, Venue, and Exter. The Creta remained one of the company’s strongest-performing products.
“So, before GST reform, the mix was heavily skewed in favor of only cars more than 4 meters but now we are seeing a growth across segments. But I don’t think this is a trend as such. We’re going to introduce two new models this year which are both going to be SUVs,” Garg said.
The company also reported strong traction in rural markets and alternative fuel vehicles. Rural penetration reached a record 25% in Q4FY26, while CNG contribution rose to 18%.
The company projected 8–10% growth in both domestic sales and exports in FY27. It expects profitability to improve, supported by new product launches, improved operating leverage, and a stronger export mix.
The automaker plans to introduce two new nameplates during the year, including a new internal combustion engine SUV and an electric SUV, as it sharpens its focus on the fast-growing utility vehicle and EV segments.
Roadmap for FY27
Hyundai is also preparing for a major expansion in India with planned capital expenditure of about ₹7,500 crore in FY27, its highest-ever investment in the country. The investment will be used to expand production capacity and support its growing SUV and electric vehicle pipeline.
The company plans to increase total installed manufacturing capacity to 1.14 million units through phased expansion of its Pune facility. Currently, Hyundai’s combined installed capacity stands at 994,000 units annually, including 824,000 units at its Chennai plant and 170,000 units at Pune.
The Pune plant is expected to scale up to 250,000 units initially and further to 320,000 units in the second phase of expansion.
The move comes as competition intensifies in the SUV segment, with Mahindra & Mahindra and Tata Motors steadily gaining market share.
Hyundai also said it remains confident of meeting the upcoming Corporate Average Fuel Efficiency (CAFE 3) norms as it strengthens its product portfolio and compliance strategy.