Hyundai Reports 4% Decline in Profit but Surpasses Market Expectations

Hyundai Motor India Ltd (HMIL) reported a 3.7% year-on-year decline in consolidated net profit for the January–March 2025 quarter, bringing in ₹1,614 crore. Despite the dip, the automaker managed to outperform Bloomberg’s consensus projection of ₹1,332 crore.

Marginal Revenue Growth in Q4

Revenue from operations during the quarter grew marginally by 1.5% year-on-year to ₹17,940 crore, beating the forecast of ₹17,351 crore. This indicates a degree of resilience in top-line performance even as sales volume weakened.

Domestic Sales Pressure Continues

HMIL’s domestic sales during the January–March quarter fell 4.2% to 153,550 units, down from 160,317 units in the same quarter last year. The full fiscal year (FY25) also saw domestic sales decline 2.6% year-on-year, with 598,666 units sold compared to 614,721 units in FY24.

The sales drop contributed to Hyundai’s market share sliding to 14%, marking its lowest point since FY13.

Export Performance Shows Stability

In contrast to domestic sales, Hyundai’s export figures held steady. FY25 exports reached 163,386 units, marginally up from 163,155 units the previous year. Notably, exports during Q4 grew to 38,100 units, up from 33,400 units in the same quarter of the prior fiscal year.

New Product Strategy to Revive Growth

Facing growing competition and softening demand, Hyundai has revealed an ambitious plan to launch 26 new models by FY30. These will include:

• 20 internal combustion engine (ICE) vehicles

• 6 electric vehicles (EVs)

This diversified pipeline is expected to help Hyundai regain lost momentum and respond to evolving consumer preferences.

Hybrids and EVs to Join the Lineup

For the first time, Hyundai will introduce hybrid models in India as part of its eco-friendly transition. According to Managing Director Unsoo Kim, the new strategy aims to drive sustainable growth. “We will be launching 26 products, including full model changes and enhancements,” Kim stated.

Talegaon Plant to Boost Capacity

Hyundai’s upcoming manufacturing plant in Talegaon, Pune is a crucial part of the expansion plan. Operations are scheduled to begin in Q3 of FY26, supporting the rollout of new vehicles and increasing domestic and export production capacity.

Short-Term Rollout and Powertrain Strategy

Chief Operating Officer Tarun Garg confirmed that Hyundai plans to launch 8 out of the 26 new vehicles over the next two years. The models will span various powertrains, including petrol, diesel, CNG, hybrids, and EVs, aligning with the company’s multi-powertrain strategy.

Hyundai’s product focus will remain on SUVs, which made up 69% of total sales in FY25. The upcoming lineup will continue to center around this high-demand segment.

Capex and Electrification Goals

Hyundai has allocated a capital expenditure of ₹7,000 crore for FY26. Of this:

• 40% will go toward the new Talegaon facility

• 25% will support product development

The company also intends to ramp up EV infrastructure and aims to surpass the projected 13–14% industry EV penetration by 2030.

Outlook for FY26 and Dividend Declaration

Despite macroeconomic challenges and subdued consumer sentiment, Hyundai remains cautiously optimistic. It expects low-single-digit domestic growth for FY26 but is targeting 7–8% growth in exports.

The board has recommended a final dividend of ₹21 per share for FY25, reflecting confidence in the company’s long-term strategy.

Stock Performance

On the financial front, Hyundai shares ended 0.2% higher at ₹1,839.70 on the NSE on Friday, reflecting investor confidence despite the soft earnings report.