The company’s management, in its post-earnings conference call, said the growth guidance is for both domestic and export markets.
The management is confident of achieving earnings before interest taxes depreciation and amortization (EBITDA) margin of 11%-14%.
Hyundai Motor India’s export volumes are also expected to recover strongly and exceed the June quarter level of 48,000 units in the coming quarters, the management said.
It said volumes would be driven by new models and efforts in the Central and South American markets.
The automaker said it will outpace industry growth in the second half of the financial year 2027 and improve its exit market share from FY26’s 12.3%.
The management said the automaker’s new models in the second half of FY27 will help manage discount levels.
It added that India growth for the second half is seen in lower single digits and full FY27 is estimated to be 6%-9%.
Is Hyundai Motor India a “buy” or “sell”?
CLSA has an “outperform” rating on the stock and a price target of ₹2,300 per share, which indicates an upside of 12.7% from its previous close. It said the company’s EBITDA margin in the first quarter was in-line with estimates, with its adjusted gross margin down by 40 basis points on a sequential basis.
The company has been able to manage gross margin well due to cumulative price hikes of 100 basis points in the first quarter, which have partly offset cost pressures, while discounts moderated to 2.8% of revenue from 3.4% last year and cost reduction measures, CLSA said.
Nomura has a “buy” rating and a target of ₹2,498 apiece on the stock, which indicates an upside of 22.4% from its previous closing price.
It too said the company’s margins were in-line with estimates. It expects growth to outperform the industry from the second half of FY27. Nomura said the current valuation is at 23 times its estimated earnings per share (EPS) for FY28, which is attractive given an EPS compound annual growth rate (CAGR) over FY27-29 and potential for mid-teens earnings growth beyond FY29.
Of the 31 analysts who have coverage on the stock, 25 have a “buy” rating, three each have “hold” and “sell” ratings.
Q1 Results
Hyundai Motor India reported its first quarter earnings on Thursday, July 30.Its profit came in at ₹889 crore, down 35% from the ₹1,369 crore it reported a year earlier.
Its revenue declined marginally by 0.5% to ₹16,334 crore from ₹16,413 crore last year.
Its EBITDA declined 31% to ₹1,511 crore in the June quarter from ₹2,186 crore.
The company’s margin contracted to 9.3% from 13.3% in the year-ago period.
In its investor presentation, Hyundai Motor India reported total sales of 1.78 lakh units, down 1.3% from the previous year’s 1.8 lakh units. It was also below the previous quarter’s 2.08 lakh units.
Of these, its exports declined 19.6% to 38,708 units in the June quarter from the previous year’s 48,140 units. Its domestic sales increased 5.4% to 1.39 lakh units from 1.32 lakh units in the year-ago period.
The automaker has fixed August 5, 2026 as the record date for its final dividend of ₹21 apiece, which its board had on May 8, 2026, subject to shareholder approval at the ensuing annual general meeting.
It has also appointed Mukundan MS as whole-time director and chief manufacturing officer of the firm, with effect from September 1, 2026. The whole-time director appointment is subject to shareholder approval at the AGM, it added.
Stock reaction
Shares of Hyundai Motor India were up 7.11% higher at ₹2,161.6 apiece at 9.20 am on Friday. The stock has gained 13.4% in the past month and has declined 6.5% this year, so far.
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