Hyundai Motor India Limited reported a consolidated net profit of Rs 889 crore for Q1 FY27, marking a 35% decline year-on-year. Despite the profit dip, brokerages maintain a positive outlook on the stock, citing strategic initiatives to regain market share and expand exports.
Hyundai's revenue from operations slipped marginally by 0.5% YoY to Rs 16,335 crore, while Ebitda declined 31% YoY to Rs 1,512 crore. The Ebitda margin contracted to 9.3% from 13.3% a year ago, affected by commodity inflation, lower volumes, and plant startup costs. The company acknowledged the challenges faced during Q1 FY27, including temporary production disruptions and geopolitical challenges impacting exports.
Brokerages like HDFC Securities and Motilal Oswal Financial Services remain optimistic about Hyundai's future performance. HDFC Securities highlighted Hyundai's strategy to improve business fundamentals through market share recovery and export expansion, maintaining an Add rating with a target price of Rs 2,142. Motilal Oswal noted Hyundai's Q1 profit exceeded its estimates and expects new launches to drive growth in the latter half of FY27, reiterating a Buy rating with a target price of Rs 2,334.
“Q1 FY27 was a challenging quarter, affected by multiple headwinds impacting volumes and profitability. With 100% normalisation of production, coupled with a healthy demand environment and an upcoming product pipeline, recovery is likely to gain pace from Q2 onwards across both domestic and export businesses.”
Tarun Garg, Chief Executive Officer and Managing Director, Hyundai Motor India
Tarun Garg, Chief Executive Officer and Managing Director of Hyundai Motor India, stated, "Q1 FY27 was a challenging quarter, affected by multiple headwinds impacting volumes and profitability. With 100% normalisation of production, coupled with a healthy demand environment and an upcoming product pipeline, recovery is likely to gain pace from Q2 onwards across both domestic and export businesses."
Hyundai's performance in Q1 FY27 reflects broader industry challenges, including commodity price pressures and geopolitical tensions affecting export markets. However, the company's strategic focus on product diversification and market expansion positions it well for future growth.
Background
Hyundai's performance in Q1 FY27 reflects broader industry challenges, including commodity price pressures and geopolitical tensions affecting export markets. However, the company's strategic focus on product diversification and market expansion positions it well for future growth.
Looking ahead, Hyundai aims to leverage its strong SUV portfolio and capitalize on India's premiumization trend. With production normalisation and new product launches, the company is poised for a stronger performance in the second half of FY27.
