VOIWORLD/BUSINESS DESK
In a quarter marked by geopolitical tensions, subdued consumer sentiment, and a dip in volumes, Hyundai Motor India demonstrated quiet resilience. While its revenue and profit declined year-on-year for the June 2025 quarter, the company managed to hold its ground operationally—thanks to a richer product mix and a strong export performance.
The carmaker reported a net profit of ₹1,369 crore for the first quarter of FY26, an 8% drop from the ₹1,489.6 crore it posted a year ago. Still, the number was well ahead of expectations, which had placed profit closer to ₹1,215 crore—a testament to Hyundai’s ability to manage costs and improve vehicle realisations even in a tough environment.
Revenue too saw a decline of 5.4%, slipping to ₹16,413 crore from ₹17,344 crore in Q1 FY25. While slightly below analyst estimates, Hyundai’s operating numbers painted a more stable picture. EBITDA fell 6.6% to ₹2,185 crore, but once again beat forecasts, and margins held relatively firm at 13.3%, only slightly lower than last year’s 13.5%.
Exports Take the Wheel as Domestic Slows
The decline in domestic sales volumes was clear, but Hyundai’s focus on high-margin SUVs and exports provided an effective counterbalance. Though total volumes declined 6% year-on-year and quarter-on-quarter, the average selling price (ASP) rose 1%, buoyed by a higher SUV mix.
What really helped steady the company was its export strategy. While domestic SUV sales dipped by 540 basis points, exports surged, gaining 680 basis points in share and shielding the company from further erosion in performance.
“This quarter, we achieved our highest-ever rural penetration at 23%, which is a clear sign of the strength of our distribution and brand appeal beyond urban markets,” said Unsoo Kim, Managing Director of Hyundai Motor India. He added that although near-term sentiment remains cautious, a good monsoon and festive season could bring demand back on track.
Tough Terrain, But Signs of Progress
Hyundai’s leadership was candid about the challenges the company faced. “Q1 FY26 was impacted by several global disruptions—conflicts between India and Pakistan, the Iran-Israel situation, and broader geopolitical volatility,” said Tarun Garg, Whole-Time Director & COO. Despite that, he highlighted a key area of growth: the company’s electric future.
Hyundai’s Creta EV, still in its early phase, is clocking 600–700 units a month. “This early traction is helping solidify Creta’s dominance in the SUV market,” Garg said, reinforcing Hyundai’s confidence in electric mobility.
Looking Ahead: Big Ambitions and Bigger Plans
Even as it navigates headwinds, Hyundai is keeping its sights firmly on the road ahead. The company announced that it will host an Investor Day on October 15, where it will unveil its near-term business roadmap. One of the headline goals: launching 26 new products by FY30, an aggressive expansion that signals Hyundai’s intent to stay ahead in a highly competitive market.
In a move welcomed by investors, Hyundai also declared a final dividend of ₹21 per share, with August 5 set as the record date. The dividend, approved at the May 16 board meeting, awaits shareholder nod at the upcoming AGM.
While Hyundai’s Q1 results show dips in top-line numbers, the underlying message is clear: this is a company that’s navigating turbulence with poise—leaning on exports, SUVs, and strategic planning to keep its engine running smoothly. As the festive season approaches and new products line up, Hyundai appears well-positioned to accelerate once again.
