Hyundai Motor India reported a 22.2% year-on-year (YoY) decline in net profit for the fourth quarter, as rising costs and intensified competition in the automotive sector squeezed operating margins. Despite the bottom-line hit, the company's board recommended a final dividend of Rs 21 per share for FY26 in a move to bolster investor confidence.This payout rewards shareholders despite a volatile quarter where global supply chain shifts and domestic pricing pressures weighed heavily on the company's profitability.
While revenue grew 5.4%, driven by a strong appetite for SUVs and high-value models, the growth failed to trickle down to the bottom line. Hyundai reported a 370-basis-point drop in EBITDA margins-down to 10.4% from 14.1% last year, which reflected the cooling of the post-pandemic seller's market. The miss against street estimates was relatively narrow on profit but wider on operating income (EBITDA), suggesting that higher marketing spends and discount structures likely played a role in defending market share during the quarter. Hyundai's Q4 results signal a shift in the Indian auto landscape.
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Vehicle sales in India have picked up since New Delhi cut taxes last September, boosting showroom footfalls and supporting pricing power. During the quarter Hyundai's total sales rose 8.7% and exports gained 9.4% driven by strong demand for the Creta SUV, helping it fend off competition from local rival Mahindra. That helped Hyundai offset the impact of high commodity prices due to the ongoing Iran war.
While revenue grew 5.4%, driven by a strong appetite for SUVs and high-value models, the growth failed to trickle down to the bottom line. Hyundai reported a 370-basis-point drop in EBITDA margins-down to 10.4% from 14.1% last year, which reflected the cooling of the post-pandemic seller's market. The miss against street estimates was relatively narrow on profit but wider on operating income (EBITDA), suggesting that higher marketing spends and discount structures likely played a role in defending market share during the quarter. Hyundai's Q4 results signal a shift in the Indian auto landscape.
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