Hyundai Motor India Reports 24% Decline in Q2 FY27 Net Profit at ₹1,196.1 Crore on Rising Commodity Costs

Hyundai Motor India Limited (HMIL) on Wednesday announced its financial results for the second quarter (Q2) ended September 30, reporting a consolidated net profit of ₹1,196.1 crore. This represents a 24 per cent decline year-on-year (y-o-y) compared to ₹1,572.2 crore recorded in the corresponding period of the previous fiscal year, primarily driven by a hike in commodity prices.

Despite the squeeze on profitability, the company's total consolidated revenue from operations during the quarter grew by 18.5 per cent y-o-y to reach ₹20,696 crore, up from ₹1,7460.8 crore in the July-September quarter last year. HMIL's EBITDA for the quarter stood at ₹1,974.5 crore, lower than the approximately ₹2,429 crore reported in Q2 FY26. Meanwhile, expenses during the period rose by 24 per cent to ₹19,302 crore, led largely by the cost of materials consumed.

Commenting on the performance, Tarun Garg, Managing Director and Chief Executive Officer, HMIL, stated that Q2 FY27 was a milestone quarter marked by record volumes and quarterly revenue exceeding ₹20,000 crore for the first time since the company's inception. However, he acknowledged that elevated commodity costs weighed on profitability. Looking ahead, Garg noted that the company views the second half of the fiscal year as a period of accelerated momentum.

Operationally, HMIL recorded its highest-ever quarterly total sales of 2,19,072 units, supported by a 15 per cent y-o-y and 23 per cent quarter-on-quarter (q-o-q) growth. The period saw strong momentum in the domestic market with a 19 per cent increase in volumes both y-o-y and q-o-q. This was complemented by an all-time high rural penetration of 26.6 per cent and a record CNG contribution of 19.1 per cent in any single quarter.

On the export front, the company achieved a growth of 4 per cent y-o-y and a strong sequential growth of 38 per cent, notwithstanding ongoing geo-political challenges. HMIL stated that while macroeconomic uncertainties and cost pressures persist, the company remains focused on strengthening its leadership across key segments and delivering sustainable growth and profitability.

"Hyundai Motor India's Q2 FY27 results highlight a classic business trade-off between volume growth and margin pressure. While achieving record revenue above ₹20,000 crore and highest-ever quarterly sales of over 2.19 lakh units demonstrates robust consumer demand, the 24% drop in net profit underscores the vulnerability of manufacturing margins to rising commodity costs and input expenses. For large enterprises, navigating macro-level cost pressures while scaling distribution—such as expanding rural penetration and CNG adoption—remains crucial to sustaining long-term operational resilience." — Dr. Shishir Gupta, Founder & CEO, StartupLanes