HYUNDAI

FY26 Profit Slips 4% Amid Rising Costs and Competition

reported a 4% YoY decline in consolidated net profit to ₹5,432 crore in FY26, marking its second consecutive annual drop since listing in October 2024. The fall reflects rising input costs, competitive discounting, and higher logistics expenses linked to the West Asia conflict. Despite muted profitability, Hyundai announced a ₹7,500 crore capex plan to expand capacity and launch new models, aiming to reclaim its position as India’s second‑largest carmaker. Financial Highlights (FY26) Metric FY26 YoY Change Notes Revenue ₹70,763 crore +2% Driven by modest domestic and export growth Net Profit ₹5,432 crore –4% Margins down 50 bps to 7.6% Domestic Sales 584,906 units –2.3% Lost rank to Mahindra & Mahindra Exports 190,125 units +3% Supported by Latin America and Africa demand Competitive Landscape Mahindra & Mahindra overtook Hyundai as India’s second‑largest carmaker in FY26, buoyed by strong SUV sales. Tata Motors continues to dominate the EV segment, intensifying competition. Hyundai’s market share slipped marginally as discounts rose to defend volumes. Strategic Outlook Capex plan: ₹7,500 crore for new models and production expansion. Focus areas: SUVs, EVs, and premium hatchbacks. Management view: CEO Tarun Garg emphasized regaining market position through innovation and localization. Cost pressures: Commodity inflation and freight costs expected to persist through H1FY27. Conclusion Hyundai’s FY26 results underline margin strain amid intensifying competition and global cost pressures. While profitability dipped, steady revenue growth and planned investments signal a long‑term commitment to India’s passenger‑vehicle market. Execution of its capex roadmap and product refresh cycle will be key to restoring growth momentum in FY27.