Hyundai India’s margin recovers sequentially but remains below last year
Expenses outpaced revenue growth year on year, cutting operating margin by 4.37 percentage points, while other income contributed 13.84% of pre-tax profit.
Filed 28 Oct 2026, 14:34 IST · Hyundai Motor India Ltd (HYUNDAI)
Key takeaways
- Consolidated net profit fell 23.92% year on year as expenses grew 24.55%, faster than revenue growth of 18.53%.
- Sequential momentum improved, with revenue up 26.70% and operating margin widening 0.29 percentage points to 9.54%.
- Hyundai India's operating margin was 2.74 percentage points below the 12.28% median for 68 reported Consumer Discretionary peers.
Price around the results
Revenue growth did not prevent a year-on-year profit decline
Hyundai Motor India reported consolidated revenue growth of 18.53% in Q2FY27, but net profit fell 23.92% to Rs 1,196.16 cr. Expenses rose 24.55%, outpacing revenue and reducing operating margin by 4.37 percentage points. Higher interest expense, up 51.50%, added to the pressure on pre-tax profit.
Sequential margin recovery remains modest
The quarter improved from Q1FY27: revenue rose 26.70% and expenses increased 26.30%, allowing operating margin to widen 0.29 percentage points. Net profit increased 34.61% sequentially, helped by the higher operating profit and a 7.65% decline in interest expense. The broader trend is still weaker than a year ago, with operating margin moving from 13.91% in Q2FY26 to 11.23%, 10.39%, 9.25% and now 9.54%.
Margin trails the reported sector peer median
Hyundai India's 9.54% operating margin was 2.74 percentage points below the 12.28% median among 68 Consumer Discretionary companies that had reported the same quarter. Other income accounted for 13.84% of pre-tax profit, making it a meaningful contributor to reported earnings. The tax rate was broadly unchanged year on year, so the profit decline was not driven by a higher tax rate.
Market reaction is not yet available
The results are too fresh for an immediate stock reaction to be assessed. After the past eight results, the stock rose six times and fell twice, with a median absolute move of 1.55%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹20,696 cr | ₹16,335 cr | +26.70% | +18.53% |
| Other income | ₹224 cr | ₹274 cr | -18.37% | -3.14% |
| Expenses | ₹18,722 cr | ₹14,823 cr | +26.30% | +24.55% |
| Operating profit | ₹1,974 cr | ₹1,512 cr | +30.61% | -18.71% |
| Operating margin (%) | 9.54% | 9.25% | — | — |
| Interest | ₹25 cr | ₹27 cr | -7.65% | +51.50% |
| Depreciation | ₹555 cr | ₹557 cr | -0.31% | +7.32% |
| Profit before tax | ₹1,618 cr | ₹1,202 cr | +34.63% | -23.90% |
| Tax | ₹422 cr | ₹313 cr | +34.71% | -23.85% |
| Net profit | ₹1,196 cr | ₹889 cr | +34.61% | -23.92% |
| EPS (₹) | ₹14.72 | ₹10.94 | +34.55% | -23.93% |
Operating margin of 9.54% compares with a Consumer Discretionary sector median of 12.28% across 68 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.54% after the sequential recovery.
- Whether other income's contribution to pre-tax profit stays below or above 13.84%.