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Hyundai Motor India reported mixed performance in Q1FY27

ICICIdirect Research 31 Jul 2026 DISCLAIMER

News: Hyundai Motor India reported mixed performance in Q1FY27. Sales volume for the quarter stood at 1.78 lakh units, down 1% YoY due to production disruptions at one of its key suppliers in the month of June 2026. Total operating income for Q1FY26 came in at ₹ 16,335 crore with ensuing ASPs at ~₹ 9.04 lakh/unit, up ~2.1% QoQ. SUV share of sales in total domestic PV sales volume stood at ~70% ( vs. 68% in Q1FY26). EBITDA margins for the quarter came in at 9.3%, down ~110 bps QoQ. Consequent PAT in Q1FY27 came in at ₹889 crore, down 35% YoY. Margins were moderated tracking negative operating leverage with calibrated price hikes largely negating the impact of rise in raw material prices (up 100 bps QoQ, 200 bps YoY). 

View: Hyundai delivered a resilient operational performance in Q1FY27 despite facing two significant external headwinds—a supplier fire that disrupted production in June and geopolitical disruptions impacting exports to the Middle East. Domestic volumes still grew 5.4% YoY, while April-May sales had grown 13% YoY, indicating that underlying demand remained healthy before the temporary supply disruption. Management highlighted that most of the lost production has already been recovered in July, with the remaining expected to be recovered by August-September, reaffirming its 8-10% domestic and export volume growth guidance for FY27. The company remains optimistic about H2, supported by the launch of two new models (an ICE midsize SUV and a dedicated EV). Rural demand continues to outperform, with rural contribution reaching a record 25.9%, while SUVs maintained a strong 70% mix and CNG penetration reached an all-time high of 18.2%, highlighting the strength of Hyundai's product portfolio. Although commodity inflation (around 200 bps YoY) and plant stabilization costs weighed on profitability, management reiterated its 11-14% EBITDA margin guidance.

Impact: Neutral

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