Hyundai India FY26 profit drops 3.7%, plans Rs 7,500 crore capex
Hyundai India FY26 profit drops 3.7%, plans Rs 7,500 crore capex
Hyundai India reports FY26 net profit down 3.7% to Rs 5,432 crore as commodity costs rise; outlines Rs 7,500 crore capex, Pune expansion, and two new models including an EV.
Hyundai Motor India reported a 3.7 percent fall in its consolidated net profit for FY26 to Rs 5,432 crore as commodity costs escalated amid the West Asia crisis. Revenue rose 2.3 percent to Rs 70,763 crore, while EBITDA margins slipped 70 basis points to 12.2 percent, though still within the company’s guidance of 11-14 percent for the year.
Domestic volumes grew 1.7 percent to 7,75,031 units, while exports surged 16.4 percent to 1,90,125 units as the Korean carmaker focused on markets in Latin America and Mexico despite geopolitical disruptions.
Despite the muted fiscal-year performance, the company remains optimistic about FY27, guiding 8-10 percent growth in both domestic and exports volumes with the launch of two new nameplates — one an EV marking Hyundai’s entry into the compact SUV space and the other an ICE vehicle in the mid-SUV segment where Creta already leads.
We’ve seen growth from existing models plus the new Venue, and we expect the momentum to continue through the year, said Tarun Garg, managing director and chief executive officer, during a post-earnings media call. We are open to opportunities beyond the 8-10 percent guidance if they arise.
To fuel this growth, Hyundai India announced a capital expenditure (capex) of Rs 7,500 crore for the current fiscal, the highest in recent years. Garg also announced the expansion of the Pune facility by another 70,000 units after Phase II, taking total capacity to about 11.4 lakh units by 2030. Half of the capex will go to new products and product-related investments, with the remainder allocated to Pune expansion and an upgrade of the Chennai plant.
Liquidity improved, with cash and cash equivalents nearly doubling to Rs 8,712 crore at the end of March 2026 from Rs 4,846 crore a year earlier. The board recommended a dividend of Rs 1,706 crore, or Rs 21 per share, representing a payout ratio of about 31.4% on consolidated profit. For Q4, profit declined 22 percent to Rs 1,256 crore even as revenue rose 5.4 percent to Rs 18,916 crore. The company posted an all-time rural penetration of 25 percent in Q4, with CNG accounting for 18 percent of sales (up from 13 percent in the year-ago quarter). SUVs accounted for 68 percent of the portfolio, hatchbacks 18 percent, and sedans 13 percent.
