Hyundai Motor India Shares Fluctuate Post Q4 Results; Buy, Sell, or Hold?

Shares of Hyundai Motor India Ltd. fluctuated between gains and losses on Monday, May 19, following the company’s fourth-quarter earnings announcement for the fiscal year ending March 31, 2025. The stock traded near Rs 1,850 per share on the NSE, down slightly by 0.3 percent at 11:35 am.

Highlights:

• Q4 net profit declined 4% YoY to Rs 1,614 crore.

• Revenue rose 1.5% YoY to Rs 17,940 crore.

• EBITDA margin improved sequentially to 14.1%, though down 20 basis points YoY.

Financial Performance Overview for Q4 FY25

Hyundai Motor India reported a net profit of Rs 1,614 crore in Q4 FY25, marking a nearly 4 percent decline compared to Rs 1,677 crore earned in the same quarter last fiscal year. Despite the profit dip, the company’s revenue from operations grew 1.5 percent year-on-year to Rs 17,940 crore. The EBITDA margin stood at 14.1 percent, down 20 basis points compared to Q4 FY24 but showing a significant sequential increase of 290 basis points.

Highlights:

• Profit fell modestly despite revenue growth.

• Margins improved sequentially, indicating better operational efficiency.

• The mixed financials contributed to stock volatility.

Strategic Product Expansion and Hybrid Vehicle Plans

Hyundai Motor India is planning to expand its product portfolio significantly by launching 26 new models by 2030, with eight expected over FY26-FY27. The company is also set to introduce a hybrid vehicle, joining Japanese rivals in embracing hybrid technology to address India’s evolving mobility landscape amid a fragmented transition to cleaner energy vehicles.

Highlights:

• 26 new model launches planned by 2030.

• Eight launches expected in the near term (FY26-FY27).

• Entry into hybrid vehicle segment to capture eco-conscious buyers.

Analyst Views: Buy, Sell, or Hold?

Market watchers remain cautiously optimistic. Nomura highlighted that near-term demand may stay weak, but a significant re-rating could occur once Hyundai’s new model cycle gains momentum by Q4 FY26. The brokerage has maintained its ‘buy’ rating, raising the target price to Rs 2,291 from Rs 2,096, citing an attractive valuation and improving export prospects.

Motilal Oswal echoed a positive outlook, factoring in a 7 percent volume CAGR for Hyundai over FY25-27E, largely concentrated in the later years. The brokerage anticipates near-term earnings impact due to start-up costs from Hyundai’s new Pune plant but expects normalization by FY27E. It also underscored Hyundai’s favorable position in India’s premium SUV market and reaffirmed a ‘buy’ rating with a target price of Rs 2,137.

Highlights:

• Nomura maintains ‘buy’ with an increased target price of Rs 2,291.

• Motilal Oswal forecasts 7% volume CAGR through FY27E, with earnings normalizing post new plant start-up costs.

• Both brokers highlight Hyundai’s strong positioning in premium SUVs and export growth.