Forbes India
Hyundai Motor India reported a 3.7 percent fall in its consolidated net profit in fiscal 2026 to Rs 5,432 crore as commodity costs escalated due to the West Asia crisis. The country’s fourth-largest carmaker (by domestic sales) is looking to hike prices in May to offset some of these costs.Revenue rose 2.3 percent to Rs 70,763 crore from Rs 69,193 crore last year. Profitability came under pressure with EBITDA (earnings before interest, taxes, depreciation and amortisation) margin down 70 bps to 12.2 percent. The margin, though, was within the company’s guidance of 11-14 percent, a target it maintained for the current fiscal.Domestic volumes grew 1.7 percent to 7,75,031. Exports performed better with shipments surging 16.4 percent to 1,90,125 despite geopolitical disruptions as the Korean carmaker focused on other markets such as Latin America and Mexico.Also Read: Why did car sales boom in April despite West Asia crisis?Despite a muted fiscal-year performance, the company said it was optimistic on FY27.It expects both domestic and exports volumes to grow 8-10 percent with the launch of two new nameplates.One of them will be an EV and mark Hyundai’s debut in the compact SUV space, while the other will be an ICE vehicle in the mid-SUV segment where the carmaker already leads with the Creta.“Growth in the past four months has come from existing models plus the new Venue. We saw good traction post-GST and we expect that to continue till at least August-September which is when the low base effect will start to wane,” said Tarun Garg, managing director and chief executive officer, at a post-earnings media call Friday.“We are ready to look at more opportunities beyond this 8-10 percent (guidance) in case any present themselves.”To support this growth the company will incur a capital expenditure of Rs 7,500 crore in this fiscal, the highest in recent years.Garg also announced the expansion of its Pune facility by another 70,000 units after the Phase-II expansion, taking the overall capacity to 11.4 lakh units by 2030.Also Read: Maruti, Hyundai: Same destination, different routesSome 50 percent of the Rs7,500 crore capex will go to new products and product-related investments, while the rest will go into the Pune plant expansion and an upgrade of its Chennai plant.Cash and cash equivalents nearly doubled to Rs 8,712 crore at the end of March 2026 from Rs 4,846 crore a year earlier.The board of directors recommended a dividend of Rs 1,706 crore, or Rs 21 per share, which is a payout ratio of 31.4 percent on the consolidated profit.For the quarter ended March 31 (Q4), profit declined 22 percent to Rs 1,256 crore even as revenue rose 5.4 percent to Rs 18,916 crore.The company achieved an all-time high rural penetration of 25 percent in Q4 while CNG had an 18 percent share in sales, up from 13 percent in the same quarter last fiscal.SUVs form 68 percent of Hyundai India’s portfolio while hatchbacks contribute 18 percent and sedans 13 percent.
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