HYUNDAI

’s Margins Hold, Volumes Lag Behind Rivals

reported a muted Q3FY26 performance, with EBITDA margin flat at 11.2% YoY despite improved unit economics. Domestic sales were stagnant at 1.47 lakh units, trailing Maruti Suzuki’s robust growth. Exports provided relief, rising 21% YoY to ~49,000 units, driving overall volume growth of 5%. While GST cuts boosted industry demand, Hyundai’s gains were limited compared to rivals, reflecting challenges in sustaining market share amid intensifying SUV competition. Financial and Operational Metrics - EBITDA margin: 11.2% YoY, unchanged. - EBITDA per vehicle: ₹82,067, up 2% YoY, aided by gross profit per vehicle rising 9% to ₹217,000. - Cost pressures stemmed from staff expenses and commissioning of the new Pune plant. Sales and Market Share - Domestic sales: 1.47 lakh units, flat YoY. - Maruti Suzuki volumes surged 21% YoY to 5.65 lakh units, benefiting from GST cuts and small car demand. - Hyundai’s domestic market share fell to 11.5% in Q3FY26, down from 14.6% in Q1FY25. - SUV competition intensified, impacting Hyundai’s flagship Creta positioning. Exports and Strategic Outlook - Exports: 49,000 units, up 21% YoY, offsetting weak domestic growth. - Management exploring India as a potential export hub to Europe, contingent on India-EU FTA. - Current export markets: Middle East, Asia, Africa, Latin America. Forward-Looking Commentary - January 2026 volumes improved: domestic +9.5% YoY, exports +21%, overall +11.5%. - Price hikes in January expected to support margins, provided steel prices remain stable. - Nomura forecasts 24% earnings CAGR (FY26–FY28), supported by new model cycle from H2FY27. - Upside potential if Genesis luxury brand succeeds in India. - Valuation attractive post 24% correction from peak ₹2,890, now at 20x FY28 EPS estimates.