Hyundai India profit falls 35.10% as margin slips to 9.25%
Revenue was nearly flat YoY, but expenses rose 4.18%, leaving operating profit down 30.82% and net profit down 35.10%.
Filed 30 Jul 2026, 15:20 IST · Hyundai Motor India Ltd (HYUNDAI)
Key takeaways
- Consolidated net profit fell 35.10% YoY to Rs 888.62 cr as revenue slipped 0.48% and expenses rose 4.18%.
- Operating margin narrowed 4.06 percentage points YoY to 9.25%, marking its third straight quarterly decline from the Q2FY26 peak.
- Other income contributed 22.83% of pre-tax profit, while the 4.34-percentage-point QoQ rise in the tax rate added to the earnings pressure.
Price around the results
Near-flat revenue could not absorb higher costs
Hyundai Motor India’s consolidated revenue declined 0.48% YoY to Rs 16,334.63 cr, but expenses increased 4.18% to Rs 14,822.92 cr. The cost growth outpaced revenue, cutting operating profit 30.82% to Rs 1,511.71 cr. Sequentially, revenue fell 13.65% and expenses fell 12.55%, so the smaller cost base did not prevent operating profit from declining 23.11%.
Margin pressure extended into a third straight quarter
Operating margin narrowed 4.06 percentage points YoY and 1.14 percentage points QoQ to 9.25%, as costs grew faster than revenue in both comparisons. The margin has now declined for three consecutive quarters, from 13.91% in Q2FY26 to 11.23% in Q3FY26, 10.39% in Q4FY26 and 9.25% in Q1FY27. Hyundai’s margin was 6.44 percentage points below the 15.69% median for the 41 Consumer Discretionary peers that had reported.
Other income and tax changes weakened profit quality
Other income rose 27.74% YoY and accounted for 22.83% of pre-tax profit, making it a material support to reported earnings. The QoQ tax rate increased 4.34 percentage points to 26.05%, while interest expense fell 27.83%; the lower interest burden therefore did not offset the operating decline. Pre-tax profit fell 34.95% YoY and net profit fell 35.10%.
Hyundai highlighted two AI initiatives
The presentation says Hyundai has introduced the Gen AI chatbot “HyGenie”. It also says the company is developing a dealer AI platform for vernacular sales promotions. These initiatives extend the company’s reported digital activity but do not yet change the quarter’s margin trend.
Past result-day moves have usually been modest
Across the stock’s last seven result reactions, five were positive and two were negative. The median absolute move was 1.04%, with the recorded moves ranging from -0.67% to +2.10%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹16,335 cr | ₹18,916 cr | -13.65% | -0.48% |
| Other income | ₹274 cr | ₹259 cr | +5.78% | +27.74% |
| Expenses | ₹14,823 cr | ₹16,950 cr | -12.55% | +4.18% |
| Operating profit | ₹1,512 cr | ₹1,966 cr | -23.11% | -30.82% |
| Operating margin (%) | 9.25% | 10.39% | — | — |
| Interest | ₹27 cr | ₹38 cr | -27.83% | +10.51% |
| Depreciation | ₹557 cr | ₹584 cr | -4.54% | +5.49% |
| Profit before tax | ₹1,202 cr | ₹1,604 cr | -25.08% | -34.95% |
| Tax | ₹313 cr | ₹348 cr | -10.11% | -34.51% |
| Net profit | ₹889 cr | ₹1,256 cr | -29.23% | -35.10% |
| EPS (₹) | ₹10.94 | ₹15.45 | -29.19% | -35.07% |
Operating margin of 9.25% compares with a Consumer Discretionary sector median of 15.69% across 41 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New initiatives
- Hyundai has introduced the Gen AI chatbot “HyGenie”.
- Hyundai is developing a dealer AI platform for vernacular sales promotions.
What to watch
- Whether operating margin holds above 9.25% after three consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue after the 4.18% YoY cost increase.
- Whether other income remains below or above its 22.83% share of pre-tax profit.