Hyundai Motor India (HMIL) has announced a robust financial performance for the second quarter of fiscal year 2026, showcasing strong margins despite a decline in its domestic market share. The company's Q2 results, revealed on Thursday, October 30, 2025, demonstrate a significant rise in consolidated net profit, which reached ₹1,572.2 crore, a 14.3% increase compared to ₹1,375.4 crore in the same period last year.
The strong performance was underlined by a notable improvement in the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin, which stood at 13.9%, up 113 basis points year-on-year. This surpassed analyst estimates of 13.6%. EBITDA itself increased by 10.1% to ₹2,428.9 crore. Revenue also saw an uptick, rising 1.2% year-on-year to ₹17,460.8 crore.
Several factors contributed to Hyundai's impressive Q2 results. Effective cost management and a strategic focus on the SUV segment played a significant role in maintaining profitability. The increasing popularity of SUVs was evident in the domestic sales figures, with SUVs accounting for a record 71.1% of total sales. Furthermore, rural markets contributed a substantial 23.6% to overall sales, indicating Hyundai's successful expansion into areas outside urban centers. GST reforms and the festive season also helped boost profit and revenue.
Hyundai Motor India's Managing Director, Mr. Unsoo Kim, highlighted the company's "Quality of Growth" strategy as a key driver of the strong EBITDA margins, which are nearly 14%. He also acknowledged the contribution of robust exports and consistent cost optimization efforts. The company's emphasis on exports aligns with its "Quality of Growth" strategy. HMIL anticipates exceeding its fiscal year 2026 export targets, supported by a 21.5% year-on-year increase in export volumes in Q2 FY26, which contributed 27% to overall sales.
Despite the positive financial results and increased exports, Hyundai Motor India has experienced a decline in its domestic market share, hitting a 24-year low in the first half of the fiscal year. This contraction reflects the increasing competition in the Indian passenger vehicle market.
Looking ahead, Hyundai's focus will likely remain on capitalizing on the growing demand for SUVs and expanding its reach in rural markets. Investors will also be keen to learn more about the company's EV portfolio sales strategy, demand outlook, and new product timelines. These factors will be crucial in assessing Hyundai Motor India's future growth prospects and market positioning. Recently, Hyundai Motor India appointed Tarun Garg as the new MD and CEO.
In September, Hyundai recorded a 10% rise in vehicle sales to 70,347 units. Domestic sales stood at 51,547 units, while exports grew 44% to 18,800 units.
