Brokerages Stay Bullish on Hyundai Motor India; Shares Gain Up to 2% After Q2 Results

Hyundai Motor India Shares Gain as Brokerages Stay Bullish After Q2 Results

Mumbai, October 31: Shares of Hyundai Motor India rose up to 2 percent on Thursday following its July–September quarter (Q2 FY26) results, as major domestic and international brokerages maintained a positive outlook on the automaker. The upbeat earnings, driven by stronger exports and a robust SUV portfolio, lifted investor sentiment despite pressure from a softer domestic market.

The stock touched an intraday high of ₹2,462 apiece on the BSE, before trimming gains to close 0.7 percent higher at ₹2,430.70. The move came after multiple brokerages reiterated “Buy” or “Add” calls, citing resilient profitability, improving margins, and strong product mix.

Hyundai Motor India Q2 Results Beat Estimates

Hyundai Motor India reported a consolidated net profit of ₹1,572 crore for the second quarter of FY26, marking a 14 percent year-on-year (YoY) growth from the same period last year. The company’s revenue stood at ₹17,461 crore, up 1 percent YoY, supported by strong overseas demand even as domestic passenger vehicle sales moderated.

The automaker, which has faced sluggishness in India’s car market over the past few quarters, benefitted from its export-led momentum and premium SUV lineup. Analysts believe that recent GST rate cuts on mid-range and premium vehicles, effective from late September, are expected to revive demand in the coming quarters.

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Motilal Oswal: ‘Buy’ Rating, Target Price ₹2,801

In its post-results note, Motilal Oswal Financial Services said that Hyundai’s profit exceeded expectations due to better operating margins and effective cost management. The brokerage highlighted that Hyundai is well-positioned to leverage the premiumization trend in India, given its strong mix of SUVs like Creta, Alcazar, and Tucson.

“We believe Hyundai Motor India is structurally placed to benefit from the shift toward premium cars and SUVs,” the note said. “However, higher operating expenses at the new Pune facility may impact earnings in the near to medium term.”

Motilal Oswal maintained its ‘Buy’ rating on the stock, setting a target price of ₹2,801, implying an upside potential of over 16 percent from the previous close.

JM Financial: Strong Margins, ‘Add’ Rating

JM Financial also expressed confidence in Hyundai’s operational performance, stating that the company’s EBITDA margin of 13.9 percent surpassed its estimate by nearly 80 basis points. The brokerage credited a richer product mix, improved cost control, and robust exports for the margin beat.

It noted that the domestic passenger vehicle (PV) industry outlook remains positive, supported by factors such as GST rationalisation, repo rate cuts, the upcoming 8th Pay Commission, and better liquidity conditions.

“While the Pune plant’s ramp-up costs—25% higher than Chennai’s—may temporarily pressure margins, Hyundai’s focus on exports and premium models should cushion the impact,” the report added.

JM Financial reiterated its ‘Add’ rating with a target price of ₹2,560, implying a 6 percent upside from the last close.

HDFC Securities: ‘Reduce’ Rating, Notes Near-Term Cost Pressure

Contrary to the bullish tone of others, HDFC Securities maintained a ‘Reduce’ rating on Hyundai Motor India, setting a target price of ₹2,247, indicating a 7 percent downside.

The brokerage highlighted near-term challenges such as higher labor and overhead costs at the Pune plant until it achieves full-scale production.

“We expect these elevated costs to partially offset the recent margin improvements over the next two to three quarters,” HDFC Securities said. “While the medium-term industry outlook remains positive, Hyundai’s cautious stance in expanding market share could limit upside potential.”

Global Brokerages Maintain Positive Stance

Among global houses, Jefferies, UBS, and Nomura maintained their positive views, noting Hyundai’s steady export growth and strong SUV pipeline.

Jefferies said the company beat its earnings estimates due to stronger-than-expected margins but expressed concern about Hyundai’s declining domestic market share.

UBS highlighted that new launches and a robust SUV portfolio would enhance the company’s product mix and boost margins from FY27 onwards. Meanwhile, Nomura projected that Hyundai’s market share would improve in H2 FY26 on the back of new product launches and sustained SUV demand.

Stock Performance: Steady Gains Amid Volatility

Hyundai Motor India’s shares have shown resilience amid market volatility. The stock has risen over 42 percent in the past six months and is up 35 percent in 2025 so far, reflecting sustained investor optimism post its successful listing earlier this year.

However, short-term fluctuations remain. The stock gained 6 percent in the past week, but declined nearly 6 percent over the past month, tracking broader market corrections and mixed earnings trends in the auto sector.

Outlook: Growth Driven by Premiumisation and Exports

Analysts believe that Hyundai’s diverse SUV lineup, growing export base, and strategic cost management will continue to support profitability in the coming quarters. The expected GST rationalisation, coupled with strong replacement demand and interest rate cuts, could further bolster the passenger vehicle segment.

Despite near-term cost pressures, the consensus among brokerages is that Hyundai Motor India remains fundamentally strong, with a balanced mix of domestic and export growth drivers.

“Hyundai’s consistent focus on technology, design innovation, and premium vehicles positions it well to sustain double-digit earnings growth,” said a Mumbai-based analyst at a domestic brokerage.

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