Hyundai Motor India Q1 profit slips as board approves leadership changes

Gurugram: Hyundai Motor India hit a temporary speed breaker in the first quarter of FY27, reporting lower revenue and profit as production disruptions and export challenges weighed on performance. Even so, the carmaker has stepped on the accelerator with a series of leadership changes and remains optimistic about a recovery in the coming quarters.

The Board of Directors of Hyundai Motor India Limited approved the unaudited standalone and consolidated financial results for the quarter ended 30 June 2026 at a meeting held on 30 July. The meeting commenced at 12:30 pm and concluded at 3:10 pm.

Standalone revenue from operations stood at Rs 15,865.39 crore, comprising Rs 15,627.26 crore from core operations and Rs 238.13 crore from other operating revenue. This was lower than Rs 18,451.92 crore reported in the previous quarter and Rs 16,024.89 crore in the corresponding quarter last year.

Total income came in at Rs 16,172.85 crore, including Rs 307.46 crore in other income.

Total expenses were Rs 14,990.17 crore, including Rs 11,894.76 crore towards raw materials, Rs 642.04 crore in employee benefits and Rs 1,916.31 crore under other expenses.

Profit before tax declined to Rs 1,182.68 crore, compared with Rs 1,557.94 crore in the March 2026 quarter and Rs 1,799.87 crore a year earlier.

Profit after tax stood at Rs 883.12 crore, after a tax expense of Rs 299.56 crore.

Basic and diluted earnings per share fell to Rs 10.87, compared with Rs 15.03 in the previous quarter and Rs 16.44 in Q1 FY26.

On a consolidated basis, revenue from operations was Rs 16,334.63 crore, down from Rs 18,916.15 crore in the previous quarter and Rs 16,412.88 crore in the year-ago period.

Total income stood at Rs 16,609.00 crore, supported by Rs 274.37 crore in other income.

Total expenses increased to Rs 15,407.35 crore, including Rs 749.02 crore in employee benefit expenses and Rs 557.10 crore towards depreciation.

Consolidated profit before tax came in at Rs 1,201.65 crore, while profit after tax stood at Rs 888.62 crore. Consolidated earnings per share were Rs 10.94.

The company’s consolidated balance sheet showed total assets of Rs 34,927.74 crore, total liabilities of Rs 14,054.01 crore and equity share capital of Rs 812.54 crore.

Hyundai said the quarter was marked by several operational milestones despite the softer financial performance. The company celebrated 30 years in India, while the all-new Venue recorded its highest-ever quarterly domestic sales.

CNG models continued to gain traction, accounting for 18 per cent of total sales. The Aura achieved a record 95 per cent CNG contribution, while the Exter reached 32 per cent. Rural penetration also touched an all-time high of 26 per cent.

Domestic volumes grew 5.4 per cent year on year despite temporary production disruptions, while exports were affected by the ongoing conflict in West Asia.

Commenting on the results, Hyundai Motor India Limited, managing director and chief executive officer, Tarun Garg said the first quarter was impacted by multiple headwinds affecting volumes and profitability. He added that with production now fully normalised, a healthy demand environment and an upcoming product pipeline, recovery is expected to gather pace from the second quarter across both domestic and export businesses. The company reiterated its guidance of 8 to 10 per cent year-on-year volume growth in domestic and export markets, along with an EBITDA margin of 11 to 14 per cent for FY27.

Alongside the financial results, the board approved several key management changes.

Gopalakrishnan CS will retire as whole-time director and chief manufacturing officer on 31 August 2026 following his superannuation.

Subject to shareholder approval at the forthcoming annual general meeting, Mukundan MS has been appointed whole-time director and chief manufacturing officer with effect from 1 September 2026. A mechanical engineer with an MBA and more than 25 years of experience, he has played a key role in the expansion of Plant 1 and Hyundai’s electric vehicle manufacturing readiness.

The board also approved the appointment of Young Geon Kim as senior management personnel with effect from 1 August 2026. He brings more than three decades of experience in vehicle manufacturing and has previously contributed to the establishment of Hyundai’s manufacturing operations in Brazil.

In addition, Geeyes & Co. was reappointed as the company’s cost auditor for FY27.

Hyundai confirmed that shareholders will receive a final dividend of Rs 21 per equity share, announced earlier on 8 May 2026. The record date is 5 August 2026, while the 30th Annual General Meeting will be held through video conferencing on 26 August 2026.

The company also disclosed that it has not recognised any financial provision relating to obligations under the Environment Protection (End-of-Life Vehicles) Rules, 2025, as the government is yet to notify the operational framework and pricing mechanism for Extended Producer Responsibility certificates.

Both the standalone and consolidated financial statements received unmodified audit review reports from BSR & Co. LLP.

With production returning to normal and a refreshed leadership team taking charge, Hyundai Motor India is banking on stronger execution, new product launches and improving demand to steer the company back into higher gear over the remainder of FY27.