Hyundai Motor India Reports 14% Profit Boost Driven by Strong Exports and Rural Sales

Hyundai Motor India (HMIL) announced a 14% year-on-year increase in its profit after tax for the second quarter of FY26, reaching ₹1,572 crore. Revenue from operations grew by 1% to ₹17,460 crore. This improved profitability was supported by a rise in other income and a decrease in raw material prices. The company's EBITDA margin improved by 113 basis points to 13.9%, driven by a favourable product and export mix, along with cost optimization efforts.

Exports are performing exceptionally well, with HMIL expecting to surpass its annual targets. Exports accounted for 27% of total sales in the quarter, showing a 22% year-on-year growth, particularly strong in key markets like West Asia (35% growth) and Mexico (11% growth). Domestically, Hyundai India recorded its highest-ever SUV contribution at 71.1% and a record rural sales contribution of 23.6%. While urban markets are still facing pressure, rural markets demonstrated steady growth.

HMIL anticipates a demand increase with the implementation of GST 2.0 reforms, which have led to improved consumer affordability and a shift towards upgrading to larger vehicle segments. The company plans to leverage new plant capacity and upcoming product launches, including the new Hyundai VENUE, to maintain growth momentum. However, it expects an increase in commodity prices in Q3 FY26.

Impact This news directly impacts the Indian automotive sector and investors interested in the auto industry. HMIL's strong performance suggests resilience and growth potential in key segments like SUVs and rural markets, which can positively influence investor sentiment towards the sector. The performance also highlights the increasing importance of exports for Indian automotive operations. The anticipated impact on the Indian stock market is moderate to high, depending on how it influences broader investor outlook for the auto sector. Rating: 7/10

Difficult Terms: Profit After Tax (PAT): The net profit remaining after all expenses, taxes, and interest have been deducted from a company's total revenue. Revenue from Operations: The total income generated by a company from its core business activities. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. EBITDA Margin: EBITDA divided by revenue, expressed as a percentage, indicating profitability from core operations. bps (basis points): A unit of measure equal to one-hundredth of a percent (0.01%). 100 bps = 1%. Product Mix: The proportion of different products sold by a company. Export Mix: The proportion of sales exported to different countries or regions. Cost Optimisation: Efforts to reduce expenses while maintaining the quality or efficiency of operations. SUV: Sport Utility Vehicle, a type of vehicle combining features of passenger cars with off-road vehicle features. Rural Sales Contribution: The percentage of total sales that come from rural market areas. GST Reforms: Goods and Services Tax reforms, a tax structure implemented in India aimed at creating a common national market. Commodity Prices: The prices of raw materials like metals, oil, and agricultural products. Whole-time Director & COO: A senior executive responsible for the day-to-day operations of the company.