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Informist, Tuesday, Oct. 28, 2025

By Anand JC

MUMBAI – Hyundai Motor India Ltd. is expected to report a low-single digit revenue growth for the September quarter, dragged down by a contraction in automobile despatches but supported by higher exports and an increase in sales of sport utility vehicles such as Creta, according to analysts. These factors will also likely boost the company's operating margins for the reporting quarter.

Hyundai Motor's consolidated bottom line is expected to grow just over 9% on year to INR 15 billion, according to an average of nine estimates. Projections range between a low of INR 14 billion by JM Financial Institutional Securities and a high of INR 15.86 billion by Kotak Securities.

The company is set to report first year-on-year growth in its profit since the September quarter last year, according to data available with Informist. Hyundai Motor's bottom line had fallen 8% on year to INR 13.69 billion in the June quarter. Its net profit had contracted 14% on year to INR 13.75 billion in the September quarter of 2024.

The Venue-maker's consolidated revenue is projected to grow only 1.5% on year to INR 175.25 billion, according to an average of nine estimates. Forecast of INR 170.49 billion revenue by JM Financial is the lowest and of INR 177.62 billion by Kotak Securities is the highest. Hyundai Motor's top line had contracted just over 7% on year to INR 172.60 billion in the year-ago quarter.

The modest growth in revenue can be attributed to the lack of considerable growth in wholesale sales by the company in India, even as exports zoomed. Hyundai Motor sold 190,921 cars to dealerships in the latest quarter, down 1% on year but up 6% on quarter. The automaker stepped up despatches ahead of the festival season which got an additional boost from the cut in the goods and services tax.

Hyundai Motor has been increasingly focusing on exporting its cars from India, even as it cedes ground in the domestic market. The company's export sales grew 22% on year while domestic sales fell 7% on year in the September quarter. Exports now contribute around 27% to the company's overall sales, up from 22% in the September quarter last year.

The automaker has also been increasingly relying on sales of Creta in the Indian market. It sold a record-high 18,861 units of Creta in September. The contribution of sport utility vehicles to Hyundai Motor's sales in India, too, hit a record high of 72.4% in September.

A higher contribution of exports and sport utility vehicles to Hyundai Motor's overall product mix in India is expected to boost the average selling price of the company's cars. Hyundai Motor's realisation per car will likely increase 1-4% on year in the September quarter from INR 899,264 in the year-ago quarter, analysts said.

Hyundai Motor has been unable to make its presence felt in the small car space even as it enjoys an enviable presence in the sport utility vehicle space. "Lower demand in the small car segment as well as the company's withdrawal of Santro have impacted its market share at the lower end of the portfolio. We believe that this pull-back from the passenger car segment could limit the company's benefits from the GST rate rationalization," HDFC Securities said.

Hyundai Motor's earnings before interest, tax, depreciation, and amortisation are expected to grow nearly 8% on year to INR 23.77 billion, according to an average of eight estimates. Estimates range between a low of INR 22.39 billion by JM Financial and a high of INR 24.55 billion by Kotak Securities.

The company had reported an EBITDA margin of 12.8% in the September quarter last year. "We expect EBITDA margin to increase by 100 bps on a yoy basis to 13.8% in 2QFY26 mainly due to richer product mix and cost control measures partly offset by higher discounts and increase in marketing spends," Kotak Securities said.

On Tuesday, shares of Hyundai Motor closed 1.1% higher on the National Stock Exchange at INR 2,298.70. Of the 11 research reports on the company available with Informist, eight have a 'buy' or equivalent rating on the stock with an average target price of INR 2,575, while three have a 'sell' rating with an average price target of INR 2,198.

Analysts will closely track the company's outlook for demand and new product timelines when it discloses earnings for the reporting quarter on Thursday. Shares of Hyundai Motor have risen nearly 8% since the company detailed its June quarter earnings on Jul. 30.

Following are the consolidated Jul-Sept earnings estimates for Hyundai Motor India Ltd. from nine brokerage firms in descending order by the estimate of net profit, in INR million:

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Edited by Akul Nishant Akhoury

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