Automobile
Hyundai Motor India Q1 Profit Slumps 35%… CEO Signals Recovery Ahead as Production Returns to Normal
Despite flat revenue and shrinking margins, Hyundai Motor India remains optimistic about stronger growth from the second quarter, backed by improved production, rising SUV demand and an expanding product lineup.
New Delhi: Hyundai Motor India Ltd. (HMIL) reported a 35% year-on-year decline in consolidated net profit for the first quarter of FY27, as operational challenges and margin pressures weighed on the automaker’s earnings.
According to the company’s regulatory filing on Thursday, consolidated net profit stood at ₹889 crore for the quarter ended June 30, 2026, compared with ₹1,369 crore in the corresponding quarter of the previous financial year.
Revenue Remains Largely Unchanged
The company’s revenue from operations remained broadly stable during the quarter, although it registered a marginal decline.
- Q1 FY27 Revenue: ₹16,335 crore
- Q1 FY26 Revenue: ₹16,413 crore
The slight 0.5% dip reflects a quarter affected by production-related disruptions and external market challenges.
Venue Continues to Drive Growth
Despite the softer financial performance, Hyundai reported encouraging demand for its SUV portfolio, particularly the all-new Venue.
The company said the compact SUV recorded its highest-ever quarterly domestic sales, highlighting its continued popularity among Indian buyers.
CNG Vehicles Gain Strong Momentum
Hyundai also witnessed robust growth in the adoption of compressed natural gas (CNG) vehicles.
During the quarter:
- CNG models contributed 18% of Hyundai’s overall sales.
- The Hyundai Aura achieved a 95% CNG sales penetration.
- The Hyundai Exter recorded 32% CNG penetration.
The figures indicate increasing consumer preference for more fuel-efficient and economical mobility options.
Record Rural Market Penetration
The automaker also expanded its presence in rural India.
Hyundai reported an all-time high rural sales penetration of 26%, reflecting stronger demand beyond major metropolitan cities.
The company believes rural markets will continue to play a key role in its long-term growth strategy.
Production and Export Challenges
Hyundai’s quarterly performance was impacted by temporary operational disruptions.
The company said production constraints limited domestic volume growth to 5.4% year-on-year.
Exports also remained under pressure due to ongoing geopolitical tensions in West Asia, which affected overseas shipments during the quarter.
Management Expects Recovery From Q2
Despite the weaker first-quarter results, Hyundai remains optimistic about the coming months.
Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India, said production has now returned to normal levels, which is expected to support improved performance.hyundai-motor-india-q1-fy27-results-profit-falls-35-percent
The company expects stronger production, healthy consumer demand, and upcoming product launches to help drive growth in the remainder of the financial year.
