Hyundai Motor India Q3FY26 net profit increases 6.3% to ₹1,234 crore

While the company's net profit increased 6.3 per cent on a year-on-year basis, it dropped by 21.5 per cent on a quarter-on-quarter basis

Hyundai Motor India Limited’s (HMIL’s) consolidated net profit rose by 6.3 per cent year-on-year (Y-o-Y) to ₹1,234 crore in the third quarter of 2025-26 (Q3FY26), aided by improved demand following goods and services tax (GST) rate rationalisation in September.

 

Tarun Garg, managing director and chief executive officer (MD&CEO) of HMIL, said during a video press conference that automobile demand in India benefited from multiple policy measures, including income tax cuts announced in the previous Union Budget, GST rate cuts implemented in September, and cumulative interest rate reductions by the Reserve Bank of India (RBI) during 2025.

 

Garg said while growth was visible across segments after the GST rate cuts, industry sales data indicated a continued consumer preference for compact sport utility vehicles (SUVs). He pointed out that hatchbacks accounted for 22.4 per cent of industry sales between January and August, but their share declined to 21.4 per cent between September and December. On the other hand, the share of compact SUVs increased from 22.1 per cent to 23 per cent over the same period.

 

 

While the company's net profit increased 6.3 per cent Y-o-Y, it dropped by 21.5 per cent on a quarter-on-quarter (Q-o-Q) basis.

 

K S Hariharan, head of investor relations, HMIL, said this sequential decline in margins during the quarter was driven by multiple factors, including higher costs linked to the stabilisation of the company’s Pune facility, which became operational from October 1. He said processing costs increased during the initial phase of rampup at the plant.

 

Hariharan added that export volumes declined sequentially due to seasonal factors, which also weighed on margins. In addition, rising commodity prices — particularly precious metals, aluminium, and copper — added to cost pressures during the quarter. However, Hariharan said some of these headwinds were partly offset by moderation in domestic discounts compared with the previous quarter.

 

HMIL's exports dropped from 51,400 units in Q2FY26 to 48,888 units in Q3FY26. However, on a Y-o-Y basis, the company's exports recorded a growth of 21.1 per cent.