MUMBAI– Hyundai Motor India Limited reported a 23.9% decline in net profit to Rs 1,196 crore for the second quarter of fiscal 2027, as higher commodity costs and shrinking operating margins offset strong revenue growth and record vehicle sales.
The automaker’s net profit for the July-September quarter fell from Rs 1,572 crore in the same period a year earlier, according to a regulatory filing.
Revenue from operations climbed 18.5% to Rs 20,696 crore, compared with Rs 17,460 crore in the corresponding quarter of the previous fiscal year. The company said quarterly revenue exceeded Rs 20,000 crore for the first time since its inception.
Despite higher revenue, operating profitability weakened significantly. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 18.7% to Rs 1,974 crore from Rs 2,428 crore a year earlier.
The company’s EBITDA margin narrowed to 9.5% from 13.9%, reflecting the impact of rising input costs on earnings.
Hyundai Motor India shares gained following the earnings announcement. The stock was trading at Rs 1,898.20 on the BSE, up Rs 44.20, or 2.38%.
Tarun Garg, managing director and chief executive officer of Hyundai Motor India, described the quarter as a significant milestone for the automaker, citing record sales volumes and revenue growth.
Garg said the company’s performance was supported by strong demand, although higher commodity prices affected profitability.
“However, elevated commodity costs weighed on the quarter’s profitability. Looking ahead, we see H2 as a period of accelerated momentum for us,” Garg noted.
The company is preparing to introduce new models as part of its strategy to expand its presence across key automotive segments, including electric vehicles.
“Launch of Bayon marks the onset of our golden product cycle. We are also fully geared up for the launch of dedicated mass market EV in Q4 FY27. While macro-economic uncertainties and cost pressures persist, we remain focused on strengthening our leadership across key segments, delivering sustainable growth and profitability,” he mentioned.
Hyundai Motor India also reported a 4% year-over-year increase in exports during the quarter, despite geopolitical challenges affecting international markets. Exports rose 38% compared with the preceding quarter.
The results underscore the pressure facing automakers from higher production costs, even as Hyundai Motor India continues to expand sales, introduce new vehicles and strengthen its export business. (Source: IANS)
