Hyundai Q1 Results: Net Profit Drops 8% as Domestic Sales Slide

Hyundai Motor India reported an 8.08% year-on-year (YoY) decline in its consolidated net profit for Q1 FY26, impacted by sluggish domestic market performance. The company’s net profit fell to ₹1,369.23 crore for the quarter ended June 2025, compared to ₹1,489.65 crore in the same quarter last year.

Revenue Falls Over 5% YoY

Hyundai’s total revenue from operations also took a hit, slipping 5.37% YoY to ₹16,412.87 crore in Q1 FY26, down from ₹17,344.23 crore in Q1 FY25. The drop reflects subdued demand in the domestic segment, even as certain models continued to perform strongly.

Domestic Sales Down 11.5%, Exports Rise

The automaker’s domestic volumes fell 11.5% YoY to 1,32,259 units for the quarter. In contrast, exports grew 13% to 48,140 units as Hyundai sharpened its focus on international markets. Overall sales volumes stood at 1,80,399 units, marking a 6.1% decline YoY.

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Creta Leads SUV Sales

Despite market headwinds, Hyundai’s SUV lineup provided some support to domestic volumes. The Hyundai Creta retained its spot as the top-selling SUV in India during Q1 FY26, with 47,662 units sold. Other key contributors included the Venue (22,331 units) and Exter (17,188 units).

Currently, Hyundai offers 12 internal combustion engine (ICE) models, including Grand i10 Nios, i20, Verna, and Alcazar, along with 2 electric vehicles (EVs) – the Creta Electric and Ioniq 5.

Mahindra Surpasses Hyundai in PV Sales

In a notable market shift, Mahindra & Mahindra overtook Hyundai to become the second-largest passenger vehicle (PV) manufacturer in the domestic market during Q1 FY26. Mahindra sold 1,52,067 units, driven by strong demand for models like the Scorpio, XUV700, Thar Roxx, and XUV 3XO.

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Quick Neutral Analysis

Hyundai’s Q1 performance reflects the impact of weaker domestic demand, despite maintaining leadership in key segments like SUVs. The export growth offers some relief, but the rising competition from domestic players like Mahindra could pressure Hyundai’s market positioning going forward.