Hyundai India Q1FY26 Net Profit Falls 8% on Volume Pressure

Hyundai Motor India posted an 8% decline in its April–June net profit year-on-year. The drop in profit reflects a contraction in margin amid a decline in the first quarter dispatches as well as higher discounting.

For the quarter ended June 30, the India unit of the South Korean carmaker reported a consolidated net profit of Rs 1,362.34 crore, against Rs 1,483.05 crore in the year-ago period. Revenue from operations also fell 5% on year to Rs 1,641.3 crore.

The Creta-maker’s operating profit or Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) decreased 6.6% on year to Rs 2,185.23 crore, while EBITDA margin contracted to 13.3% from 13.5% in the year-ago period.

Hyundai India’s total volume dipped 6% during the quarter to 1,80,399 units. The company’s domestic dispatches fell 11.5% to 1.32 lakh units and lost the number two position in the India passenger vehicle market for the first time.

This comes at a time when the overall domestic passenger vehicle market sales contracted by 1.3% on year to 1.01 lakh vehicles during the quarter. Only Mahindra & Mahindra (M&M), Skoda, Kia, and Toyota managed to increase their sales, defying a broader trend.

In a notable shift in market share, M&M significantly expanded its presence from 12.1% to 15%. Conversely, India's top three carmakers saw their shares decline: Maruti Suzuki's fell to 38.9% from 40.8%, Hyundai's to 13% from 14.5%, and Tata Motors' to 12.8% from 13.9%, respectively.