Hyundai Motor Q3: Brokerages cut targets; model cycle seen as key catalyst

Hyundai Motor India reported its Q3FY26 numbers on Monday, during market hours. At 12:33 PM, Hyundai Motor’s share price was trading 0.16 per cent higher at ₹2,200 per share. In comparison, the BSE Sensex was up 2.85 per cent at83,992.97. In two sessions, the stock gained nearly 1 per cent.

 

In the December quarter, Hyundai Motor India’s consolidated net profit rose by 6.3 per cent year-on-year (Y-o-Y) to ₹1,234 crore, as compared to ₹1,160.73 crore a year ago. However, net profit dropped by 21.5 per cent on a quarter-on-quarter (Q-o-Q) basis.

 

Its revenue from operations stood at ₹17,617.8 crore, as compared to ₹16,323 crore a year ago. Check detailed results here. 

 

Brokerages’ view on Hyundai Motor India

Nomura | Buy | Target cut to ₹2,698 from ₹2,833

Nomura has maintained its 'Buy' rating on Hyundai Motor India with a revised target price, identifying the upcoming model cycle starting in H2FY27 as a primary catalyst for outperformance. While the company's Q3FY26 Ebitda of ₹2,020 crore fell below consensus due to higher raw material costs and new plant expenses, revenue remained steady at ₹17,970 crore, supported by strong SUV demand and 80,000 bookings for the new Venue. 

 

Under the leadership of new CEO Tarun Garg, Nomura expects a strategic push toward FY30 targets of 15 per cent market share and 14 per cent Earnings before interest, tax, depreciation and amortisation (Ebitda) margins, fueled by 26 new launches and the potential introduction of the Genesis brand. Despite trimming margin estimates for FY26–28F to account for commodity pressures, the brokerage views the current valuation as attractive, forecasting a 24 per cent earnings CAGR and a robust 36 per cent ROE as the new product offensive takes hold.  ALSO READ | Ather Energy shares spike 13% as Q3 loss narrows on higher sales

Motilal Oswal Financial Services | Neutral | Target cut to ₹2,567 from ₹2,663

Motilal Oswal said Hyundai Motor India’s PAT was below its estimate, largely due to lower-than-expected gross margins. Gross margins contracted 130 bps Q-o-Q due to higher input costs and an adverse mix. 

 

Considering its launch pipeline, the brokerage now factors in a 7 per cent volume compound annual growth rate (CAGR) over FY25- 28E, which is largely back-ended. This is likely to be boosted by a 19 per cent volume CAGR in exports. Analysts expect start-up costs for the new Pune plant to impact earnings in the near-to-medium term. Overall, Hyundai Motor is expected to deliver a 12 per cent earnings CAGR over FY25-28. 

 

Motilal Oswal believes the companyremains well-positioned to benefit from the premiumisation trend in India, given its mix is in favor of SUVs.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.