Hyundai Motor India Ltd on Wednesday, October 28, reported a 23.9 percent year-on-year decline in net profit to Rs 1,196 crore for the quarter ended September 2026 (Q2 FY27), compared with Rs 1,572 crore a year earlier, as rising material costs weighed on profitability despite strong sales and revenue growth.
The automaker's revenue rose 18.5 percent to Rs 20,696 crore from Rs 17,461 crore in the corresponding quarter last year. Both revenue and net profit fell short of analysts' expectations. A CNBC-TV18 poll had projected revenue of Rs 20,789 crore and net profit of Rs 1,263 crore.
Hyundai Motor India's expenses rose faster than revenue, putting pressure on operating margins. Total expenses increased 24 percent year-on-year to Rs 19,302.2 crore, while the cost of materials consumed surged 29 percent to Rs 15,730.9 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 18.7 percent to Rs 1,974.5 crore from Rs 2,429 crore a year earlier. The EBITDA margin contracted sharply by 440 basis points to 9.5 percent from 13.9 percent in the year-ago quarter.
Hyundai's domestic sales increased 18.82 percent year-on-year to 1.66 lakh units from 1.39 lakh units, while exports rose 3.7 percent to 53,300 units from 51,400 units. Combined domestic sales and exports grew 14.74 percent to 2.19 lakh units during the quarter, compared with 1.91 lakh units a year earlier.