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Informist, Thursday, May 7, 2026

By Anand JC   

MUMBAI – Hyundai Motor India Ltd. is expected to report a sharp contraction in its consolidated net profit year-on-year due to higher raw material expenses and start-up costs for its new manufacturing plant in Talegaon, Pune, according to analysts' estimates. Its revenue from operations is expected to grow on year because of higher despatches and a lower base.

The Creta maker's consolidated net profit for the March quarter is expected to be INR 12.11 billion, according to the average of 10 estimates. If these projections are met, the company's bottom line is slated to fall 25% on year – the first decline in the last three quarters. None of the projections available with Informist indicate a year-on-year growth in the company's bottom line. The highest estimate for Hyundai Motor's net profit is INR 13.18 billion by Nomura Equity Research and the lowest is INR 11 billion by JM Financial Institutional Securities Pvt. Ltd.

Hyundai Motor's consolidated revenue for the quarter under review is projected to rise 7% on year to INR 192.32 billion, according to the average of estimates. "Total revenue is expected to rise 9% YoY, supported by 26% YoY growth in the passenger car segment and 9% YoY growth in exports, along with INR depreciation," said Nirmal Bang, which has the highest estimate for the automaker's top line for the March quarter at INR 195.38 billion. The lowest projection for Hyundai Motor's revenue is INR 190.22 billion by Yes Securities (India) Pvt. Ltd.

Hyundai Motor sold 208,275 cars in the March quarter, up 9% on year and 6% on quarter. The average realisation per car sold by the automaker is expected to moderate mildly on year because of a higher mix of hatchbacks in its portfolio, which are typically lower priced than sports utility vehicles. The average price of cars sold by the company in the March quarter is expected to be INR 930,387, slightly lower on year, Motilal Oswal Financial Services Ltd. said.

The recently concluded financial year 2025-26 (Apr-Mar) was a difficult period for Hyundai Motor in terms of market share. "HMIL may see a challenging 4Q, given adverse mix (lower SUVs and exports), high input costs, high overhead and labor costs, and high depreciation," Motilal Oswal said.

Robust performance in the exports market may have helped the company's overall sales performance in recent years but lull in the domestic market took a toll on its market share. Having held the second spot in India's passenger vehicle market for years, the company slipped to the fourth spot, behind Mahindra & Mahindra Ltd. and Tata Motors Passenger Vehicles Ltd. The company's market share in the passenger vehicle segment fell to 12.49% in FY26 from 17.60% in FY20. Motilal Oswal expects Hyundai Motor's profit for FY26 to be INR 53.59 billion, down almost 5% on year and revenue to be INR 712.25 billion, up nearly 3% on year.

Yet, the company is banking on a slew of launches to drive up its market share in a space where it has increasingly relied on sales of its sports utility vehicle Creta. "For new models, Hyundai Motor India has had a 100% success rate (ability to recover product development cost in four years) over the past 10 years, which is higher than that of peers," Nuvama Institutional Equities said in a note. The facelift version of Hyundai Motor's Venue launched in November has received healthy traction in the market. The company plans to launch seven new cars by FY30.

Hyundai Motor is expected to report earnings before interest, tax, depreciation, and amortisation of INR 20.52 billion for the March quarter, down almost 19% on year, according to the average of nine estimates. The lowest estimate for the company's EBITDA is INR 19.05 billion by JM Financial and the highest forecast is INR 21.74 billion by Nomura.

Hyundai Motor began production at its plant in Talegaon in October. The carmaker's labour, overheads, and depreciation costs have gone up as production ramps up at this new facility. "As we ramp up the capacity and the operations in the near future, some increase in depreciation is expected. So broadly speaking, I would say roughly 100 basis points would be the impact from the Pune plant processing cost, which we expect should continue at least for a year," the company's Head of Investor Relations K.S. Hariharan told analysts in a post-earnings conference call in February.

"We expect EBITDA margin to decline by 100 bps on a qoq basis to 10.6% in 4QFY26 mainly due to commodity headwinds (150 bps), new plant-related cost (20-30 bps), higher overheads, and an inferior product mix (lower mix of SUVs and hatchbacks) partly offset by operating leverage benefit, higher incentives (40-50 bps), and price increase (60 bps).exports)," Kotak Securities said. Hyundai Motor had reported an EBITDA margin of 14.1% in the year-ago quarter and 11.2% in the December quarter.

Of the 11 brokerage reports on the company available with Informist, seven have a "buy" or equivalent recommendation on the stock with an average target price of INR 2,552 per share. Three brokerages have a "sell" or equivalent recommendation while one has a "hold" call on the stock. The company will declare its March quarter earnings on Friday. On Thursday, shares of the company closed marginally lower at INR 1,835.80 on the National Stock Exchange.

Following are the consolidated Jan-Mar earnings estimates, in INR billion, for Hyundai Motor from 10 brokerages in descending order of the net profit estimate:

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IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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