Hyundai Motor Q2 net profit jumps 14.3% on high exports, cost reduction

The consolidated net profit of Hyundai Motor India (HMIL) increased 14.3 per cent year-on-year (Y-o-Y) to Rs 1,572 crore in the second quarter of 2025-26 (FY26) due to cost reduction and a significant jump in exports.

 

HMIL exported a total of 51,400 units in the second quarter, recording a 21.5 per cent Y-o-Y growth. This helped the company as its domestic sales in the same quarter decreased 6.8 per cent Y-o-Y to 139,521 units.

 

“We are witnessing strong demand traction in our key export markets, with the Middle East and Africa recording a remarkable volume growth of 35 per cent and Mexico recording a growth of 11 per cent. Going forward, we expect to leverage our new plant capacity and new product launches to sustain this growth momentum,” said Unsoo Kim, managing director, HMIL, during an audio press conference after the release of the second-quarter results.

 

 

The South Korean carmaker’s total income increased 1.4 per cent Y-o-Y to Rs 17,692 crore in the second quarter of FY26.

 

K S Hariharan, head of investor relations, HMIL, stated that revenue was up because of better export contribution to volume sales in the second quarter. “The margins we earn on exports are better than domestic. So that has supported us. Apart from that, we also had a good amount of cost reduction in our materials through value engineering and other initiatives,” he added.

 

Tarun Garg, chief operating officer, HMIL, explained that the company has always “maintained quality of sales”. He stated that HMIL was a carmaker that did not give any price discounts even when sales were low during the GST transition period (August 15–September 21). “That has also supported our margin growth in this quarter, in addition to what Hariharan has said. So we continue to maintain a very good balance between domestic and export on one hand and between volume and profit on the other,” he stated.

 

Garg will become MD and CEO of HMIL from January 1 next year.

 

On August 15, Prime Minister Narendra Modi announced that GST rates would be rationalised. The reduced rates took effect from September 22. Automobile sales across India remained sluggish between August 15 and September 21 as customers waited for lower prices available from September 22 onwards.

 

Garg said that sales have risen sharply since September 22, adding that HMIL’s monthly retail sales grew 20 per cent in the September–October period compared to the average monthly sales between January and August.