Hyundai Motor India Q2 FY27 Net Profit Drops 24% to Rs 1,196 Crore on Margin Squeeze Despite Record Revenue
Hyundai Motor India Limited (HMIL) reported a quarter of sharp contrasts for the second quarter ended September 30 of FY27, combining all-time high vehicle sales and milestone top-line growth with severe profitability pressures stemming from raw material cost inflation.
Consolidated revenue from operations increased 18.5% year-on-year to ₹20,696.1 crore (₹206,961 million), surpassing the ₹20,000 crore threshold for the first time in a single quarter. Despite the robust sales expansion, consolidated net profit after tax declined 23.9% year-on-year to ₹1,196.16 crore, down from ₹1,572.25 crore in the corresponding period of the previous fiscal year. On a standalone basis, net profit fell 24% to ₹1,189 crore against ₹1,570 crore in the year-ago quarter.
Operational and Financial Highlights
The company’s operating metrics reflected significant cost inflation:
- Revenue from Operations: Rose 18.5% YoY to ₹20,696.1 crore compared to ₹17,460.8 crore in Q2 FY26.
- Operating EBITDA: Declined 18.7% YoY to ₹1,974.5 crore from ₹2,428.9 crore in the prior-year quarter.
- EBITDA Margin: Contracted by 440 basis points to 9.5% from 13.9% in Q2 FY26, though showing a slight sequential recovery from 9.3% in Q1 FY27.
- Consolidated Profit After Tax (PAT): Came in at ₹1,196.16 crore, falling 23.9% YoY from ₹1,572.25 crore.
- Earnings Per Share (EPS): Basic and diluted EPS declined to ₹14.72 from ₹19.35 in the year-ago period.
Both revenue and profit missed consensus analyst projections, with a CNBC-TV18 poll having estimated revenue of ₹20,789 crore and net profit of ₹1,263 crore for the quarter.
Record Vehicle Deliveries and Expanding Rural Footprint
The automaker achieved its highest-ever quarterly sales volumes during Q2 FY27, registering total deliveries of 219,072 units, an increase of 15% year-on-year and 23% sequentially. Domestic sales advanced 18.8% to 165,772 units, supported by continued demand for SUVs and alternative fuels.
Key Sales and Volume Metrics:
- Total sales reached an all-time quarterly high of 219,072 units.
- Rural market penetration reached a record 26.6%.
- Compressed Natural Gas (CNG) models contributed a historic high of 19.1% of quarterly sales.
- Export shipments rose 4% year-on-year and 38% quarter-on-quarter, demonstrating resilience amid geopolitical disturbances across global shipping lanes.
Management Outlook
Marking the company’s 30th year of operations in India, HMIL Managing Director and Chief Executive Officer Tarun Garg noted that while elevated commodity expenses affected profitability, operational leverage, disciplined cost reduction, and a favorable product mix supported sequential operating improvements.
Garg expressed confidence for the second half of the fiscal year, pointing to the rollout of HMIL's latest product cycle led by the Bayon, alongside plans for a dedicated mass-market electric vehicle (EV) scheduled for release in Q4 FY27. Management maintained its full-year domestic volume growth guidance in the band of 8% to 10%, anticipating margin improvement over the remainder of the fiscal year.
