Hyundai India Second Quarter Net Profit Drops to ₹1,196 Crore Amid Rising Costs

Hyundai Motor India Limited reported a 24 percent drop in standalone net profit to ₹1,196 crore for the second quarter that ended on September 30, 2026, compared to ₹1,572 crore during the same period a year earlier. According to Business Standard, the profit fell 23.9 percent due to rising raw material costs and higher employee expenses that weighed heavily on profit margins.

Sales and Revenue

Even with the drop in net profit, company revenue rose 19 percent year-on-year to reach ₹20,696 crore. Managing Director and CEO Tarun Garg stated that quarterly revenue crossed ₹20,000 crore for the first time since the company started. The automaker also recorded its highest-ever quarterly total sales at 219,072 units, which is a 15 percent increase from the previous year. Domestic sales volumes grew by 19 percent, while exports went up by 4 percent annually despite global challenges.

Future Plans

The company stated that operating leverage, a healthy product mix, and cost reduction efforts helped improve its EBITDA margin compared to the previous quarter. Looking ahead, Managing Director and CEO Tarun Garg noted that the second half of the year will bring faster momentum. This period will start with the launch of the Bayon, which marks the beginning of a golden product cycle for the firm. HMIL is also getting ready to launch a mass-market electric vehicle in the fourth quarter of fiscal year 2027.

Context

Automobile companies often face pressure on their profit margins when raw material and commodity prices rise in global markets. Launching new vehicle models and electric cars is a common strategy for major carmakers to boost sales volume and recover profitability.