Hyundai Motor India Q2 Profit Rises 14% on Strong Sales and Steady Demand
Hyundai Motor India Q2 Results: Net Profit Rises 14% YoY; SUV Sales and Exports Drive Growth
Mumbai, October 30, 2025: Hyundai Motor India Ltd (HMIL), the country’s second-largest carmaker, reported a 14% year-on-year (YoY) rise in consolidated net profit at ₹1,572 crore for the second quarter of FY26, driven by higher margins, strong exports, and record SUV sales. The company’s net profit in the same quarter last year stood at ₹1,375 crore.
Despite facing intense competition from rivals such as Tata Motors and Mahindra & Mahindra, Hyundai managed to sustain profitability through a sharper product mix, efficiency gains, and cost optimization initiatives.
Hyundai’s revenue from operations grew 1% YoY to ₹17,461 crore during Q2 FY26, compared to ₹17,260 crore in Q2 FY25. Although top-line growth was modest due to lower domestic volumes, the company’s operating performance remained strong.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 10% YoY to ₹2,429 crore, up from ₹2,205 crore in the year-ago period. The EBITDA margin expanded by 110 basis points to 13.9%, compared to 12.8% a year earlier, highlighting Hyundai’s ability to protect profitability amid rising input costs and competitive pricing pressures.
Company officials attributed the improved margins to a combination of cost-control measures, higher realization from SUV sales, and the growth in export volumes, which offer better pricing leverage.
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One of the biggest highlights of the September quarter was Hyundai’s highest-ever SUV contribution to its domestic volumes, reaching 71% in Q2 FY26. The company’s popular models — Creta, Venue, and Exter — continued to dominate the SUV segment, which remains India’s fastest-growing automobile category.
The Creta remained the undisputed volume driver, contributing 51,683 units or 37% of total domestic sales, reaffirming its position as one of India’s most successful mid-size SUVs.
Additionally, Hyundai achieved its highest-ever rural market share of 24%, underscoring the growing appeal of its vehicles beyond urban centers. The company’s targeted efforts to expand dealership networks and tailor financing options for rural buyers appear to be paying off.
While the company saw a 7% decline in domestic volumes, delivering 1,39,521 units during Q2 FY26 compared to 1,49,639 units in the same quarter last year, this was offset by strong export performance.
Hyundai’s export shipments rose 21% YoY to 51,400 units in the September quarter, up from 42,300 units last year. This robust export growth reflects the company’s increasing focus on international markets, particularly in Latin America, Africa, and South-East Asia.
Hyundai India’s expanding global footprint has positioned it as a key export hub within the Hyundai Motor Group, with several models shipped to over 85 international markets.
Hyundai currently offers a diverse portfolio spanning internal combustion engine (ICE) and electric vehicle (EV) models. Its popular ICE lineup includes Grand i10 Nios, i20, Aura, Verna, Exter, Venue, Creta, Alcazar, and Tucson. On the EV front, Hyundai markets the Ioniq 5 and the Creta Electric, reflecting its gradual transition toward cleaner mobility solutions.
The company is gearing up for the launch of the second-generation Hyundai Venue on November 4, which is expected to bolster its compact SUV portfolio further.
Hyundai’s strategic emphasis on SUVs and EVs, coupled with product upgrades and localization efforts, is expected to enhance both market share and profitability over the coming quarters.
Commenting on the results, Unsoo Kim, Managing Director and CEO of Hyundai Motor India, said:
“We delivered a strong financial performance for the quarter across key metrics, with evident growth in revenue and profitability. The robust EBITDA margin of nearly 14% stands as a testament to our ‘Quality of Growth’ strategy, supported by strong exports and consistent cost optimization efforts.”
Kim added that the Goods and Services Tax (GST) reforms have played a pivotal role in improving operational efficiency. Looking ahead, he emphasized Hyundai’s commitment to maintaining growth momentum through innovation, sustainability, and expanding rural and export footprints.
“We aim to keep pace with the industry’s growth trajectory for the remainder of FY26, and our strong export performance is set to surpass annual targets,” Kim said.
The Indian automobile industry continues to witness fierce competition in the SUV segment, with major players such as Tata Motors, Mahindra, and Maruti Suzuki introducing new models to capture growing consumer demand.
Despite this, Hyundai remains a formidable player, consistently ranking among the top two carmakers in India. The company’s focus on product innovation, design, and after-sales service has helped it maintain a loyal customer base, even as market dynamics evolve rapidly.
Analysts believe Hyundai’s margin resilience and export strength will help it navigate short-term headwinds such as raw material cost fluctuations and slower domestic growth.
Going forward, Hyundai Motor India is expected to continue focusing on premiumization, EV expansion, and market diversification. The upcoming launch of the new Venue and updates to existing models are anticipated to drive festive season demand.
With its robust export growth, record SUV sales, and healthy profitability, Hyundai Motor India appears well-positioned to sustain its momentum in FY26. Analysts expect the company’s focus on technology and sustainability to further strengthen its brand presence in both domestic and global markets.
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