Hyundai Motor India Limited (HMIL) reported its highest-ever quarterly sales and crossed the ₹20,000 crore revenue milestone in the second quarter of FY2026-27, marking a significant achievement for the automaker. For the quarter ended September 30, 2026, consolidated revenue from operations increased 18.5% year-on-year to ₹20,696.1 crore, supported by record vehicle volumes and stronger domestic demand. The company also reported improved sales momentum compared with the previous quarter.
However, higher revenue did not translate into higher profitability. Consolidated net profit declined 23.9% year-on-year to approximately ₹1,196 crore as raw-material inflation and higher employee expenses weighed on earnings. Hyundai’s EBITDA margin fell to 9.5% from 13.9% in the year-ago quarter, although it improved slightly from 9.3% in Q1 FY2026-27. The results highlight the challenge of converting sales growth into sustainable profit growth amid volatile input costs.
Key Takeaways
- Record revenue: Consolidated revenue from operations reached ₹20,696.1 crore, up 18.5% year-on-year.
- Profit declined: Net profit fell 23.9% to approximately ₹1,196 crore.
- Highest-ever quarterly sales: Hyundai sold 219,072 vehicles, up approximately 14.8% year-on-year.
- Domestic demand strengthened: Domestic sales increased 18.8% to 165,772 units.
- Margins remained under pressure: EBITDA margin dropped to 9.5% from 13.9% a year earlier.
- Rural demand reached a record: Rural markets accounted for 26.6% of domestic sales.
- Outlook: Hyundai expects stronger momentum in the second half of FY2026-27, with commodity prices and margin recovery remaining key factors to watch.
Hyundai Motor India Q2 FY27 Results: Financial Performance
Hyundai’s September-quarter results reflect a combination of higher vehicle sales and continued pressure on operating costs. Revenue increased significantly, but expenses rose faster, affecting the company’s bottom line.
The company reported the following consolidated financial performance.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹20,696.1 crore | ₹17,460.8 crore | +18.5% |
| EBITDA | ₹1,974.5 crore | ₹2,428.9 crore | -18.7% |
| EBITDA margin | 9.5% | 13.9% | -4.4 percentage points |
| Net profit (PAT) | ₹1,196.2 crore | ₹1,572.3 crore | -23.9% |
| Total vehicle sales | 219,072 units | 190,921 units | +14.8% |
Source: Hyundai Motor India’s Q2 FY27 results. Figures are consolidated; minor differences may arise from rounding.
Revenue growth was driven by higher vehicle volumes, improved domestic demand and stronger sequential exports. However, EBITDA—the earnings measure before interest, taxes, depreciation and amortization—fell as input costs pressured operating performance.
The difference between revenue and profit growth is central to understanding the quarter. Hyundai generated more business, but each rupee of sales produced less operating profit than it did a year earlier.
Why Did Hyundai Motor India’s Revenue Cross ₹20,000 Crore?
Hyundai’s revenue milestone was supported by record quarterly vehicle sales. Total sales reached 219,072 units, compared with 190,921 units in Q2 FY26.
Domestic sales increased to 165,772 units, while exports reached 53,300 units. The company also recorded sequential improvement compared with Q1 FY27, when total sales stood at 178,082 units.
| Sales metric | Q2 FY27 | Q2 FY26 | YoY growth |
|---|---|---|---|
| Domestic sales | 165,772 units | 139,682 units | 18.8% |
| Exports | 53,300 units | 51,239 units | 3.7% |
| Total sales | 219,072 units | 190,921 units | 14.8% |
Figures may vary slightly from rounded figures in individual company presentations.
Domestic demand was the main contributor to volume growth. Exports also improved, although their year-on-year growth was more modest. Hyundai’s product portfolio, distribution network and demand across vehicle segments helped support the quarterly performance.
The company also reported that SUVs accounted for 67% of domestic sales, reflecting the importance of sport utility vehicles in its sales mix.
Rising Raw-Material Costs Put Pressure on Profit
Despite record sales, Hyundai’s net profit fell nearly 24%. The company attributed the pressure primarily to higher commodity and raw-material costs, alongside increased employee expenses associated with the commencement of operations at its Pune plant.
According to reporting by Business Standard, Hyundai indicated that raw-material inflation affected margins by approximately 400 basis points year-on-year. The sequential impact was also significant, highlighting the volatility of commodity prices.
Total expenses increased faster than revenue, limiting the benefit of higher vehicle volumes. Costs related to metals and other production inputs can have a substantial impact on an automaker because even relatively small price movements can affect thousands of vehicles produced during a quarter.
Hyundai has been working to offset these pressures through cost-reduction initiatives, pricing discipline and increased localisation. However, the September-quarter results show that these measures have not yet fully neutralised the impact of higher input costs.
EBITDA Margin Falls to 9.5%
The EBITDA margin measures how much operating earnings a company generates from its revenue. Hyundai’s margin fell to 9.5% in Q2 FY27 from 13.9% in the corresponding quarter last year.
| Margin metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| EBITDA | ₹1,974.5 crore | ₹1,511.7 crore | ₹2,428.9 crore |
| EBITDA margin | 9.5% | 9.3% | 13.9% |
The sequential improvement from 9.3% to 9.5% suggests that operating performance improved slightly compared with the June quarter. Nevertheless, the margin remains well below the level recorded a year earlier.
Hyundai has maintained its FY27 EBITDA margin guidance of 11% to 14%, according to reporting on the results. Reaching that range will depend on commodity-price movements, product mix, cost management and the company’s ability to sustain sales growth.
A stronger second half could help improve operating leverage, as higher production volumes spread fixed costs across more vehicles. However, the extent of any recovery remains uncertain while commodity prices remain volatile.
Domestic Demand, Rural Markets and SUVs Support Growth
Hyundai reported encouraging demand trends across several parts of its business. Rural markets accounted for a record 26.6% of domestic sales, while CNG vehicles contributed a record 19.1% of quarterly sales.
The company also highlighted the importance of SUVs, which represented 67% of domestic volumes. This mix is significant because demand for SUVs has become an important driver of competition among passenger-vehicle manufacturers in India.
Exports increased 3.7% year-on-year to 53,300 units and rose strongly compared with the previous quarter. The sequential improvement offers some support to the company’s international business, although geopolitical developments and conditions in overseas markets could influence future export volumes.
Hyundai also cited the encouraging response to its BAYON model and said a dedicated mass-market electric vehicle launch was planned for Q4 FY27. New products could help sustain demand, but their eventual impact will depend on pricing, customer response and the competitive environment.
First-Half FY27 Performance: Revenue Grows, Profit Declines
The first-half results show that Hyundai’s revenue growth has not yet translated into stronger earnings.
| Financial metric | H1 FY27 | H1 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹37,030.7 crore | ₹33,873.7 crore | +9.3% |
| EBITDA | ₹3,486.2 crore | ₹4,614.2 crore | -24.4% |
| Net profit | ₹2,084.8 crore | ₹2,941.5 crore | -29.1% |
Source: Hyundai Motor India Q2 FY27 financial results.
First-half revenue rose 9.3%, while net profit fell 29.1%. The gap reinforces the importance of margin recovery during the remainder of the financial year.
The second half will be important for determining whether stronger sales volumes, new products and cost-control measures can offset continued commodity pressure. If costs remain elevated, Hyundai may find it difficult to translate revenue growth into a comparable improvement in profitability.
The Bigger Picture
Hyundai Motor India’s Q2 FY27 results demonstrate that strong demand and record revenue are not sufficient on their own to ensure earnings growth. The company achieved its first quarterly revenue above ₹20,000 crore while recording its highest-ever quarterly sales, but higher raw-material costs and employee expenses reduced operating profitability.
For India’s passenger-vehicle industry, the results highlight a broader challenge: manufacturers must balance competitive pricing, product investment and volume growth against fluctuating input costs. Hyundai’s ability to protect margins while maintaining sales momentum will be an important indicator of its financial performance in the coming quarters.
FAQs
1. What was Hyundai Motor India’s Q2 FY27 revenue?
Hyundai Motor India’s consolidated revenue from operations reached ₹20,696.1 crore in Q2 FY27, an increase of 18.5% from ₹17,460.8 crore in Q2 FY26.
2. Why did Hyundai Motor India’s Q2 profit fall?
Net profit declined 23.9% year-on-year to approximately ₹1,196 crore. Higher raw-material costs and increased employee expenses put pressure on profitability despite stronger sales.
3. How many vehicles did Hyundai Motor India sell in Q2 FY27?
The company recorded total quarterly sales of 219,072 vehicles, including 165,772 domestic units and 53,300 export units. This was its highest-ever quarterly sales volume.
4. What was Hyundai Motor India’s EBITDA margin in Q2 FY27?
The consolidated EBITDA margin was 9.5%, down from 13.9% in Q2 FY26. It improved slightly from 9.3% in Q1 FY27.
5. What is Hyundai Motor India’s outlook for the second half of FY27?
Hyundai expects stronger momentum in the second half, supported by new products and operational improvements. Its stated EBITDA margin guidance is 11% to 14% for FY27, although the recovery will depend on commodity costs, demand and execution.
Looking Ahead
Hyundai Motor India enters the second half of FY27 with record sales and revenue, but restoring profitability will be the central challenge. Investors and industry observers will be watching the next quarterly results for evidence that raw-material pressures are easing and the EBITDA margin is moving toward the company’s guidance range.
The planned electric-vehicle launch, continued SUV demand and growth in rural markets could support the company’s sales outlook. However, sustained earnings growth will require Hyundai to convert that demand into better margins through cost control, pricing discipline and operational efficiency. The next few quarters should provide a clearer picture of whether its revenue milestone marks the beginning of a more profitable growth phase.
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