Hyundai India Second-Quarter Profit Drops 24 Percent Despite Record Sales

Hyundai Motor India reported a 24 percent year-on-year decline in standalone net profit to 1,196 crore rupees for the second quarter ended September 30, 2026, dropping from 1,572 crore rupees a year earlier.

Revenue And Sales

Revenue rose 19 percent year-on-year to 20,696 crore rupees, crossing the 20,000 crore rupee mark for the first time since inception. The automaker recorded its highest-ever quarterly total sales at 219,072 units, which is up 15 percent year-on-year and 23 percent sequentially. Domestic volumes grew 19 percent, while exports rose 4 percent annually and 38 percent quarter-on-quarter.

Costs And Outlook

Elevated commodity prices and higher employee expenses weighed on profitability and margins. Managing Director and CEO Tarun Garg stated that commodity headwinds hurt profit, though operating leverage, a healthy mix, and cost reduction steps helped improve EBITDA margin sequentially. Garg added that the second half will see accelerated momentum with the launch of the Bayon and a dedicated mass-market electric vehicle in the fourth quarter.

Context

Automobile manufacturers often face margin pressure when raw material costs rise, even during periods of strong vehicle sales. Companies manage these cost cycles by introducing new product lineups and improving operating efficiency.