Hyundai Motor India Q2 FY27 profit drops 24% to ₹1,196 crore on margin squeeze
Synopsis
Hyundai Motor India crossed ₹20,000 crore in quarterly revenue for the first time ever — yet posted a 24 per cent profit drop. The margin squeeze from commodity costs tells a story common to India's entire auto sector right now, and the real bet is whether the upcoming mass-market EV in Q4 FY27 can rewrite the profitability narrative.
Key Takeaways
Hyundai Motor India reported Q2 FY27 net profit of ₹1,196 crore , down 23.9 per cent year-on-year from ₹1,572 crore .
Revenue from operations rose 18.5 per cent to a record ₹20,696 crore — the first time quarterly revenue has exceeded ₹20,000 crore in HMIL's history.
EBITDA margin contracted sharply to 9.5 per cent from 13.9 per cent a year ago, weighed by elevated commodity costs.
Exports grew 4 per cent year-on-year and 38 per cent sequentially, despite geopolitical challenges.
A dedicated mass-market EV launch is planned for Q4 FY27 ; the Bayon launch has already been flagged as the start of a new product cycle.
HMIL shares rose 2.38 per cent to ₹1,898.20 on the BSE after the results were announced.
Hyundai Motor India Limited (HMIL) on Wednesday, 28 October 2026 reported a 23.9 per cent year-on-year decline in net profit for Q2 FY27 (July–September 2026), as elevated commodity costs squeezed margins even as the automaker posted record quarterly revenue. The results were disclosed in a stock exchange filing.
Profit and Margin Under Pressure
Net profit for the quarter ended 30 September 2026 came in at ₹1,196 crore, down sharply from ₹1,572 crore in the corresponding quarter of the previous year. At the operating level, EBITDA contracted 18.7 per cent to ₹1,974 crore from ₹2,428 crore in Q2 FY26. The EBITDA margin narrowed significantly to 9.5 per cent from 13.9 per cent a year earlier — a compression of 440 basis points — underscoring the pressure that input cost inflation has placed on profitability across India's passenger vehicle segment.
Record Revenue Offers a Silver Lining
Revenue from operations jumped 18.5 per cent year-on-year to ₹20,696 crore, up from ₹17,460 crore in the year-ago period. This marks the first time in HMIL's history that quarterly revenue has crossed the ₹20,000 crore threshold, driven by record volumes. Exports also showed resilience, growing 4 per cent year-on-year and recording a strong sequential rise of 38 per cent, despite ongoing geopolitical headwinds in key overseas markets.
What the CEO Said
Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India, described the quarter as a milestone for the company. 'The quarter was a milestone quarter for HMIL, marked by record volumes and quarterly revenue exceeding ₹20,000 crore for the first time since our inception,' Garg said. He added, however, that 'elevated commodity costs weighed on the quarter's profitability,' while flagging that the company sees 'H2 as a period of accelerated momentum.'
Garg also outlined near-term product plans, noting that the 'launch of Bayon marks the onset of our golden product cycle,' and that the company is 'fully geared up for the launch of dedicated mass market EV in Q4 FY27.' He acknowledged that 'macro-economic uncertainties and cost pressures persist,' but said the focus remains on 'strengthening our leadership across key segments, delivering sustainable growth and profitability.'
Market Reaction
Despite the profit decline, HMIL shares gained ground on the Bombay Stock Exchange (BSE) following the earnings announcement, trading at ₹1,898.20 — up ₹44.20, or 2.38 per cent — suggesting investors were encouraged by the record revenue milestone and the company's forward guidance on its EV roadmap.
What to Watch
The upcoming launch of a dedicated mass-market electric vehicle in Q4 FY27 will be a critical test of HMIL's ability to balance volume ambitions with margin recovery. Whether commodity cost pressures ease in the second half, as Garg has indicated, will determine if the record revenue figure can be accompanied by a profit rebound.
Point of View
But mass-market EVs typically carry thinner margins at launch, which could extend rather than resolve the profitability squeeze.
NationPress
28 Oct 2026
Frequently Asked Questions
What were Hyundai Motor India's Q2 FY27 results?
Hyundai Motor India reported a net profit of ₹1,196 crore in Q2 FY27 (July–September 2026), a 23.9 per cent decline year-on-year. Revenue from operations, however, rose 18.5 per cent to a record ₹20,696 crore in the same period.
Why did Hyundai India's profit fall despite record revenue?
Elevated commodity costs weighed on profitability, compressing the EBITDA margin from 13.9 per cent a year ago to 9.5 per cent in Q2 FY27. The company's CEO, Tarun Garg, acknowledged that input cost inflation offset the gains from record volumes and revenue.
What is Hyundai India's upcoming EV launch?
Hyundai Motor India plans to launch a dedicated mass-market electric vehicle in Q4 FY27. The company has also launched the Bayon, which it describes as the beginning of a 'golden product cycle' for the brand in India.
How did Hyundai India's exports perform in Q2 FY27?
Exports grew 4 per cent year-on-year and 38 per cent sequentially in Q2 FY27, according to the company's stock exchange filing, despite ongoing geopolitical challenges in overseas markets.
How did Hyundai India's stock react to the Q2 FY27 earnings?
HMIL shares rose 2.38 per cent to ₹1,898.20 on the BSE following the earnings announcement, as investors appeared encouraged by the record revenue milestone and the company's forward-looking guidance on its EV and product pipeline.
