Mumbai, July 30
Hyundai Motor India on Wednesday reported an 8 per cent year-on-year (YoY) drop in its consolidated net profit for the first quarter ended June 30 (Q1 FY26).
The company posted a profit of Rs 1,369.23 crore, compared to Rs 1,489.65 crore in the same period previous year (Q1 FY25), according to its stock exchange filing.
Revenue from operations declined 5.4 per cent to Rs 16,413 crore in the April-June quarter, down from Rs 17,344 crore a year earlier.
Total income also followed suit and dropped by 5.35 per cent to Rs 16,627.6 crore, compared to Rs 17,567.9 crore in year-ago period.
Operating profit (EBITDA) also fell 6.6 per cent to Rs 2,186 crore from Rs 2,341 crore in the same quarter previous year, while margins slipped to 13.3 per cent from 13.5 per cent.
However, the company's expenses decreased by 5.03 per cent at Rs 14,780.4 crore in quarter under review, compared to Rs 15,564.6 crore in Q1 FY25.
The company's board has recommended a final dividend of Rs 21 per share, with a face value of Rs 10 each.
The record date for the dividend has been set as August 5, the company stated in its regulatory filing.
Following the earnings announcement, Hyundai Motor India's shares were trading at Rs 2,083.20 apiece on the National Stock Exchange (NSE), down 0.83 per cent from the previous close.
Commenting on the financial performance, Unsoo Kim, Managing Director said, "We continued our stated strategy of 'Quality of Growth' in the first quarter of FY26 with balance between domestic and exports, market share and profitability."
"This strategy helped us to sustain strong EBITDA margin of 13.3 per cent during the quarter, despite tough macro-economic environment," Kim added.
He stated that "moving forward, we anticipate gradual recovery in domestic demand sentiments, driven by onset of monsoon and festive season coupled with government policy measures, while on the exports front, we are confident to maintain a positive momentum, in line with our growth commitments."
— IANS
Reader Comments
As a Hyundai car owner, I'm concerned about how this might affect after-sales service. The company should prioritize customer satisfaction even during tough times. Their service network is one of their biggest strengths in India.
The festive season might bring some relief, but Hyundai needs to focus more on electric vehicles. Tata and MG are already ahead in the EV race. Where are Hyundai's affordable EV options for Indian customers?
Dividend of ₹21 per share is still decent for shareholders. Shows company's confidence in future prospects. Maybe good time to buy more stocks at this dip before festive season sales pick up!
The 5% drop in revenue is concerning but expected. Indian auto market is becoming very competitive with so many options now. Hyundai needs to refresh its models more frequently to stay relevant.
Hyundai India is still doing better than many global operations. Their exports strategy seems to be working well. Maybe they should focus more on premium segment like they did with Alcazar. Indian customers are ready to pay for good features!
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