Gurugram: Hyundai Motor India Limited (HMIL) crossed the ₹20,000-crore quarterly revenue milestone for the first time in its history, reporting consolidated revenue of ₹20,696.1 crore for the second quarter of FY 2026-27. The achievement was supported by record vehicle sales and stronger domestic demand, although rising commodity costs weighed heavily on profitability, pushing net profit down nearly 24% year-on-year.
The company’s Board of Directors approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 2026 on October 28.
Consolidated revenue increased 18.5% from ₹17,460.8 crore in Q2 FY26 and climbed 26.7% sequentially from ₹16,334.6 crore in Q1 FY27, reflecting a substantial improvement in sales momentum.
However, the impressive revenue growth did not translate into higher earnings. Consolidated profit after tax (PAT) declined 23.9% year-on-year to ₹1,196.2 crore, compared with ₹1,572.3 crore in the corresponding quarter last year.
The company nevertheless recorded a sequential recovery in profitability, with PAT increasing 34.6% from ₹888.6 crore in the preceding quarter.
Record Sales of 2.19 Lakh Vehicles Drive Revenue Growth
Hyundai Motor India recorded its highest-ever quarterly vehicle sales of 219,072 units in Q2 FY27, representing growth of 15% year-on-year and 23% quarter-on-quarter.
Domestic sales emerged as a major contributor, with volumes increasing 19% on both a year-on-year and sequential basis.
The company also reported its highest-ever rural market penetration of 26.6%, highlighting the growing importance of customers beyond India’s major metropolitan centres.
CNG-powered vehicles accounted for a record 19.1% contribution during the quarter, reflecting increasing consumer interest in alternative-fuel vehicles.
The figures indicate that Hyundai’s growth was supported by demand across different customer segments, with rural markets and CNG models playing increasingly prominent roles.
Exports also contributed to the overall performance, recording growth of 4% year-on-year and a sharper 38% sequential increase despite geopolitical challenges affecting international markets.
The company’s reported export figures include both completely built-up (CBU) and completely knocked-down (CKD) vehicles.
EBITDA Margin Improves Sequentially but Remains Below Last Year
While Hyundai’s sales performance reached new heights, profitability continued to face pressure from elevated commodity costs.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding other income, stood at ₹1,974.5 crore in Q2 FY27, compared with ₹2,428.9 crore during the same quarter last year, marking a decline of 18.7%.
The EBITDA margin narrowed to 9.5% from 13.9% in Q2 FY26, a contraction of 440 basis points.
On a sequential basis, however, the picture was more encouraging. EBITDA increased 30.6% from ₹1,511.7 crore in Q1 FY27, while the margin improved from 9.3% to 9.5%.
Hyundai attributed the sequential improvement to operating leverage, a healthier sales mix and cost-reduction initiatives that partly offset rising input expenses.
The figures illustrate a familiar challenge for automobile manufacturers: selling more vehicles does not necessarily mean earning more profit when production costs are moving in the opposite direction.
Half-Year Revenue Rises to ₹37,031 Crore, Profit Declines 29%
For the first half of FY27, Hyundai Motor India’s consolidated revenue reached ₹37,030.7 crore, compared with ₹33,873.7 crore in H1 FY26, representing growth of 9.3%.
However, consolidated EBITDA declined 24.5% to ₹3,486.2 crore from ₹4,614.2 crore during the corresponding period last year.
The half-year EBITDA margin consequently contracted to 9.4%, against 13.6% in H1 FY26.
Consolidated profit after tax for the six-month period stood at ₹2,084.8 crore, down 29.1% from ₹2,941.5 crore a year earlier.
The half-year results underline the contrast between Hyundai’s expanding revenue base and its weaker earnings performance, with cost pressures continuing to offset the benefits of higher sales volumes.
Hyundai BAYON Begins New Product Cycle; Mass-Market EV Planned for Q4 FY27
Beyond the financial figures, Hyundai Motor India outlined its upcoming product strategy, identifying the BAYON as the beginning of what the company describes as its “golden product cycle.”
According to HMIL, the BAYON has received an encouraging initial response, and the company expects its new product introductions to support sales momentum during the second half of the financial year.
Hyundai also confirmed that it is preparing to launch a dedicated mass-market electric vehicle in Q4 FY27.
The upcoming electric vehicle forms part of the company’s efforts to strengthen its presence in India’s evolving passenger vehicle market, where manufacturers are balancing demand for conventional petrol and diesel models with growing interest in CNG and electric mobility.
The company did not disclose additional specifications or pricing details for the planned EV in the financial announcement.
Hyundai CEO Tarun Garg Sees Accelerated Momentum in Second Half
Commenting on the quarterly performance, Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India Limited, said:
“Q2 FY27 was a milestone quarter for HMIL, marked by record volumes and quarterly revenue exceeding ₹20,000 crore for the first time since our inception. However, elevated commodity costs weighed on the quarter’s profitability.
Looking ahead, we see H2 as a period of accelerated momentum for us. Launch of Bayon marks the onset of our golden product cycle. We are also fully geared up for the launch of dedicated mass market EV in Q4 FY27. While macro-economic uncertainties and cost pressures persist, we remain focused on strengthening our leadership across key segments, delivering sustainable growth and profitability.”
The management’s outlook suggests that Hyundai is banking on fresh product launches, continued domestic demand and operational efficiencies to sustain growth while addressing the pressure on margins.
Revenue Milestone Highlights Growth, but Profitability Remains Key Challenge
Hyundai Motor India’s Q2 FY27 performance presents two contrasting developments. On one hand, the company has achieved its highest quarterly vehicle sales and crossed ₹20,000 crore in quarterly revenue for the first time. On the other, lower year-on-year EBITDA margins and declining net profit show that higher volumes alone are insufficient to protect earnings.
The sequential improvement in revenue, EBITDA and net profit provides some encouragement, particularly as the company prepares for a new round of vehicle introductions.
With the BAYON beginning its latest product cycle and a dedicated mass-market electric vehicle scheduled for Q4 FY27, Hyundai enters the second half of the financial year with an expanding product agenda.
Ultimately, the coming quarters will test whether the automaker can convert its record sales momentum into stronger profitability. For Hyundai, the next milestone may be less about how many vehicles it sells and more about how much it earns from each one.
