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Hyundai Motor India: healthy Q2’26; on well charted growth trajectory

ICICIdirect Research 31 Oct 2025 DISCLAIMER

Hyundai Sales volume in Q2FY26 stood at 1.9 lakh units, flat YoY & QoQ while Maruti Sales volume for the quarter stood at 5.51 lakh units, up 1.7% YoY
EBITDA margins for the quarter came in at 13.9%, up 60 bps QoQ while for Maruti Margins were at 10.5%
Premiumization trend is intact for Hyundai with SUV share of sales in total domestic PV sales volume standing at ~71% (highest ever). Retail sales recovered during festive season with a growth of 21% in SUV segment wherein compact SUV (Exter & Venue) grew by 28%.
During recent Analyst Day, HMIL announced strategic investment plan of ₹45,000 crores through FY2030 aimed at transforming India into its second-largest global region.
HMIL aims for up to 30% export contribution, crossing ₹1 lakh crore in revenues with sustained double-digit EBITDA margins in the range of 11%-14% by 2030
HMIL targets a 15%+ domestic market share with over 80% of its portfolio contribution from utility vehicles and >50% powered by eco-friendly technologies like CNG, EV, and hybrids.
With this aim for FY30, HMIL guides to grow at a CAGR of 7% in the domestic market through FY26E to FY30E.


Outlook and Rating:
Given Hyundai well-articulated strategy, we maintain our BUY rating on the stock & continue to value HMIL at ₹ 2,800 i.e. 30x P/E on avg. of FY27-28E EPS. We also have a BUY rating on Maruti with a target price of ₹ 17,160; valuing it at 28x PE on FY27E.

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