Hyundai Motor India Reports 14% Profit Growth in Q2 FY26 Driven by Cost Control and Exports

Auto

30th October 2025, 5:37 PM

Hyundai Motor India Reports 14% Profit Growth in Q2 FY26 Driven by Cost Control and Exports

▶

Short Description :

Hyundai Motor India reported a 14% year-on-year net profit increase to Rs 1,572 crore for Q2 FY26, exceeding estimates. Despite a 1% dip in revenue, its Ebitda margin improved to 13.9% due to stringent cost controls and a favorable export mix, which helped offset a 7% fall in domestic sales. The company is also planning significant investments in electric and hybrid vehicles by 2030.

Detailed Coverage :

Hyundai Motor India (HMIL) announced a 14% year-on-year growth in its net profit for the second quarter of Fiscal Year 2026, reaching Rs 1,572 crore. This figure surpassed the Bloomberg estimate of Rs 1,507 crore. Consolidated revenue saw a slight increase of 1% to Rs 17,155 crore, falling short of the estimated Rs 17,638 crore. The company's Ebitda margin expanded by 110 basis points (1.1%) to 13.9%, compared to 12.8% in the same quarter last year.

Impact: This strong profit growth and margin expansion suggest robust operational efficiency and effective cost management by Hyundai Motor India. Investors will be keen on how this translates to sustained performance. Rating: 7/10

This improved profitability is attributed to favorable product and export mixes, alongside successful cost reduction efforts. While domestic sales volume declined by 7%, higher export volumes, which rose by 22% and accounted for 27% of total volumes, helped compensate.

The company mentioned that incremental costs from its Pune plant commencing production this month might affect near-term profitability, but management expressed confidence in maintaining healthy margins through operating efficiencies and cost control. The upcoming launch of the updated Venue model on November 4 is expected to support demand. Furthermore, Hyundai Motor India plans significant investments of Rs 45,000 crore to introduce 26 new products, including electric and hybrid vehicles, by 2030.

Difficult Terms Explained: Ebitda: Stands for Earnings Before Interest, Tax, Depreciation, and Amortisation. It is a measure of a company's operating performance, indicating profitability before accounting for financing, tax, and non-cash expenses. Basis points: A unit of measure used in finance to describe the percentage change in a financial instrument. One basis point is equal to 0.01% (1/100th of a percent). So, 110 basis points equal 1.1%.