Profit tanks 35%, stock soars 8%: Hyundai pulls off a Dalal Street surprise

Mumbai/IBNS: Shares of Hyundai Motor India surged nearly 8 percent in early trade on Friday despite the automaker reporting a 35 percent year-on-year decline in its consolidated net profit for the quarter ended June 30, 2026 (Q1 FY27), media reports said.

IBNS • 31 Jul 2026, 07:30 am

The stock climbed as much as 7.7 percent to Rs. 2,173.70 apiece. Minutes after the opening bell, it was trading over 6 percent higher, even as the benchmark Nifty 50 was down 0.03 percent.

Financial performance

Hyundai Motor India reported a consolidated net profit of Rs. 889 crore, down 35 percent from Rs. 1,369 crore in the corresponding quarter last year.

Revenue from operations declined 0.5 percent year-on-year to Rs. 16,334.63 crore.

The company's EBITDA margin fell to 9.3 percent, compared with 13.3 percent in the year-ago period.

Factors behind the weak earnings

The company's quarterly performance was impacted by several headwinds, including:

Higher steel and commodity prices.
Production disruptions at its Chennai manufacturing plant.
Lower export volumes due to geopolitical tensions in the Middle East.

Outlook remains positive

Despite the weaker quarterly earnings, Hyundai retained its FY27 guidance, signalling confidence in a recovery over the rest of the financial year.

The company expects:

Volume growth for the full year.
EBITDA margin in the 11–14 percent range.
Improved performance driven by festive-season launches, including a new mid-size SUV and a Venue-based electric vehicle (EV).
Continued growth in its CNG portfolio after CNG models accounted for a record 18 percent of quarterly sales.