Hyundai Motors Q1 Results: Is the Company Shifting Its Focus from Domestic to Exports?

Synopsis:
Hyundai Motor India closed at Rs. 2,083.10 after reporting a 15.2 percent QoQ and 8.1 percent YoY decline in net profit for Q1FY26. Revenue dropped 8.5 percent sequentially and 5.4 percent annually. Strong export growth of over 26 percent helped support margins, with EBITDA margin steady at 13.3 percent.

Hyundai Motor India Ltd, which has a market capitalization of Rs. 1,69,260 crore, reported its Q1FY26 earnings during late market hours. The stock closed at Rs. 2,083.10, down 0.84 percent from the previous close of Rs. 2,100.70.

What’s the News?

Quarter-on-quarter, revenue from operations declined 8.5 percent from Rs. 17,940 crore in Q4FY25 to Rs. 16,413 crore in Q1FY26. Operating profit dropped 13.7 percent to Rs. 2,185 crore from Rs. 2,533 crore. Profit before tax was down 15.1 percent from Rs. 2,175 crore to Rs. 1,847 crore. Net profit fell 15.2 percent to Rs. 1,369 crore from Rs. 1,614 crore in the previous quarter.

Year-on-year, revenue declined 5.4 percent from Rs. 17,344 crore to Rs. 16,413 crore. Operating profit dropped 6.6 percent from Rs. 2,340 crore to Rs. 2,185 crore. Profit before tax fell 7.8 percent from Rs. 2,003 crore to Rs. 1,847 crore, and net profit declined 8.1 percent from Rs. 1,490 crore to Rs. 1,369 crore.

Sales Performance

Total sales volume in Q1FY26 stood at 1,80,399 units, down 5.9 percent quarter-on-quarter from 1,91,650 units and lower by 6.1 percent year-on-year from 1,92,055 units.

Domestic sales declined 13.8 percent quarter-on-quarter from 1,53,550 units to 1,32,259 units and fell 11.5 percent year-on-year from 1,49,455 units to 1,32,259 units. The company attributed the weakness to persistent macroeconomic challenges affecting demand sentiment.

On the other hand, exports rose sharply to 48,140 units, up 26.3 percent from 38,100 units on a sequential basis and 13 percent from 42,600 units on a year-on-year basis. Hyundai said the momentum in exports was driven by strategic focus and strong global appeal. Favorable export mix, coupled with cost optimization efforts, helped the company cushion the impact of higher discounts on operating margins.

Revenue contribution from exports increased notably. Quarter-on-quarter, the export share rose from 20.2 percent to 27.6 percent, while domestic share dropped from 79.8 percent to 72.4 percent. Year-on-year, the export contribution increased from 23.7 percent to 27.6 percent, while domestic share declined from 76.3 percent to 72.4 percent.

Comments from the Management

Commenting on the Company’s results, Mr. Unsoo Kim, Managing Director said, “We continued our stated strategy of “Quality of Growth” in the first quarter of FY 2026 with balance between domestic & exports, market share and profitability.

This strategy helped us to sustain a strong EBITDA margin of 13.3% during the quarter, despite a tough macro-economic environment. Moving forward, we anticipate gradual recovery in domestic demand sentiments, driven by onset of monsoon & festive season coupled with government policy measures, while on the exports front, we are confident to maintain a positive momentum, in line with our growth commitments.”

Operational Highlights

The company highlighted CRETA as the SUV segment leader, completing a decade since launch. The i10 brand also crossed 3 million cumulative sales across domestic and export markets.

Rural sales contribution rose to 22.6 percent, reflecting Hyundai’s expanding reach in underpenetrated regions. CNG sales now account for 15.6 percent of the portfolio, supported by dual-cylinder technology and new model variants.

The company also marked a manufacturing milestone with the commencement of engine production at its Pune facility. EBITDA margin stood at 13.3 percent in Q1FY26, supported by export-led scale and tight cost controls.

Written By Manan Gangwar 

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