Hyundai Motor India's Q1 net profit fell 35% to ₹888.6 crore on production snags and West Asia turmoil. The company expects a recovery from Q2 onward and maintained its full-year targets.
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Hyundai Motor India Ltd (HMIL) posted a steep drop in first-quarter profit as temporary production bottlenecks and the prolonged West Asia conflict took a toll on both domestic and export volumes.
The Chennai-based automaker reported consolidated net profit of ₹888.6 crore for the quarter ended June, down 35% from the same period last year. Revenue slipped to ₹16,335 crore from ₹16,413 crore, a decline of less than 1% that masked a deeper hit to the bottom line.
Temporary production disruptions capped domestic volume growth at 5.4% year-on-year, the company said. Exports suffered from the ongoing West Asia crisis, which has complicated shipping routes and logistics for several Indian auto exporters.
“Q1 FY27 was a challenging quarter affected by multiple headwinds impacting volumes and profitability,” Managing Director and Chief Executive Officer Tarun Garg said in a statement.
The company's EBITDA margin likely came under pressure as costs stayed elevated while revenue stayed flat. Hyundai has guided for an 11-14% EBITDA margin for the full financial year, a target that now looks contingent on a sharp rebound from the second quarter onward.
Garg said that with full normalization of production, coupled with a healthy demand environment and the upcoming product pipeline, recovery should gain pace from the second quarter in both domestic and export businesses.
Hyundai reiterated its full-year guidance of 8-10% volume growth for both domestic sales and exports. The company's product launch schedule for the balance of the year includes a mix of internal combustion and electric vehicle models.
The auto maker listed on Indian exchanges in July 2025, making this its second set of quarterly results as a publicly traded entity. The stock has traded in a wide range since listing, with investors weighing the near-term margin compression against the long-term bet on India's passenger vehicle market and Hyundai's planned EV push.
Analysts will watch the second-quarter volume data and the pace of export recovery for signs that the production issues are fully behind the company. The West Asia variable remains outside management's control.
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