Hyundai Motor India Ltd. is expected to report healthy revenue growth in the second quarter of FY27, supported by higher volumes, price hikes and a favourable product mix. However, rising commodity costs are likely to offset the benefit of volume growth and operating leverage.
Brokerage estimates point to revenue growth of around 16-18% year on year, while EBITDA could decline by roughly 16-20%. Net profit is expected to fall by around 19-25%. Hyundai's wholesale volumes rose 14.7% year on year to 2.19 lakh units in Q2FY27, compared with 1.91 lakh units a year earlier. Volumes also rose 23% sequentially from 1.78 lakh units in Q1FY27, providing support to the topline.
-
India's Market Leaders To Decode The New Samvat At NDTV Profit Ignite In Mumbai On Oct 28 -
NDTV Profit IGNITE Diwali 2026: Top Market Veterans Decode Wealth Creation -
The Week Ahead: Earnings Season, Fed Policy Verdict And Crude Oil In Focus -
Silver Is Now Down From Rs 4.2 Lakh To Rs 1.9 Lakh: Where It Goes From Here -
NDTV Ignite, The Trillion-Dollar Trajectory: India's Road to 2030
The key monitorable is whether higher volumes, price increases and a richer product mix can offset the impact of inflated raw-material costs. Steel, copper, rubber and other input costs, along with wage and operating expenses, are expected to weigh on margins.
What To Expect
Brokerages expect Hyundai's revenue to grow in the mid-to-high teens year on year, and the increase is likely to be driven by volume growth, price hikes and product mix. Export realisations and currency movements could also provide some support.
EBITDA is expected to fall year on year as commodity inflation offsets the benefits of higher volumes and operating leverage. The extent of the profit decline will depend on the impact of commodity costs, operating expenses and other income, along with the pace of margin recovery.
Brokerage-Wise Estimates
Jefferies
Jefferies expects Hyundai to lag some other automakers on earnings growth, with the impact of margin compression likely to outweigh the benefit of higher volumes. Its broader sector view flags strong demand but continued pressure on profitability from commodity costs.
JP Morgan
J.P. Morgan expects passenger-vehicle manufacturers to face the sharpest margin pressure amid elevated commodity costs. It sees volume growth and price hikes supporting revenue, but expects profitability to remain under pressure. It will also watch for further price hikes following the festive season and commentary on commodity-cost trends.
Citi Research
Citi expects gross margins to remain under pressure because of higher steel, copper, plastics and rubber prices, along with increased conversion costs for vendors. It also flags higher operating expenses, including sales and marketing costs. Festive-season demand, retail sales, bookings, dealer inventory and order backlogs will be key indicators to watch.
BofA Global Research
BofA expects strong revenue growth across automakers, led by volume delivery, but sees profitability remaining under pressure from raw-material headwinds and limited pricing action in passenger vehicles. It expects two-wheeler makers to be relatively better placed to manage commodity inflation than passenger-vehicle manufacturers.
IIFL Capital
IIFL expects volumes to rise 15% year on year and 23% sequentially. Higher average selling prices, exports and model mix are expected to support revenue. Price hikes and mix could help margins sequentially, but input costs remain a headwind.
ICICI Securities
ICICI Securities expects revenue growth to be driven by volume expansion and price increases. It sees a better product mix and operating leverage providing some support, but higher material costs are likely to keep margins under pressure.
JM Financial
JM Financial expects Hyundai to report healthy volume growth, with a stronger product mix and price hikes partly offsetting commodity inflation. The brokerage flags marketing costs and higher input costs as factors that could limit the benefit of operating leverage.
Investec
Investec expects Hyundai to report the weakest earnings performance among the covered four-wheeler manufacturers, with elevated commodity costs weighing on margins. Its broader sector assessment points to healthy dispatches but continued pressure on profitability, particularly for passenger-vehicle makers.
Nirmal Bang
Nirmal Bang expects Hyundai's revenue to grow around 17% year on year, supported by approximately 15% volume growth, price hikes and currency movements. It expects EBITDA margin to contract by around 420 basis points to 9.7%, with net profit declining about 23%. The brokerage's key monitorables include demand recovery, export momentum, commodity prices and new launches.
Elara Securities
Elara's estimates also point to double-digit revenue growth alongside a decline in profitability. Its sector commentary highlights elevated commodity costs and the role of price increases, product mix and operating leverage in determining the pace of margin recovery. The brokerage is also watching the contribution from new models and exports.
Key Monitorables
- Commodity inflation and margin recovery: How much of the increase in steel, copper, rubber and other input costs can Hyundai offset through pricing, product mix and operating efficiencies?
- FY27 margin guidance: Hyundai retained its FY27 EBITDA margin guidance of 11-14% after Q1FY27, so management's commentary on the pace of recovery in the second half will be important.
- Festive demand and GST-led recovery: Whether the improvement in demand translates into sustained retail sales, bookings and lower dealer inventory will be key.
- Pricing and product mix: Further price increases may help offset input-cost inflation, but their impact on demand and discounting will need to be monitored.
- Exports and currency movements: Export volumes, realisations and currency movements could influence revenue and profitability.
- New launches and H2 growth: Hyundai's upcoming product launches, including new SUVs and an electric vehicle, are expected to support its growth plans.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.