Synopsis: Large-Cap company shares are in focus after Q4 FY26 results. Revenue grew 4.9% YoY to ₹18,916 crore, while net profit fell 22.1% to ₹1,256 crore. Despite weak earnings, brokerages remain positive (Buy/Outperform), expecting recovery from new launches, capacity expansion, and a steady growth outlook.
The shares of a Large-Cap company specialising in the manufacturing, sales, and export of passenger vehicles, acting as India’s second-largest car manufacturer and exporter, are in focus following their Q4 results and Brokerage views.
With a market capitalization of Rs. 1,52,197.07 crores in the day’s trade, the shares of Hyundai Motor India Ltd rose upto 1.25 percent, making a high of Rs. 1,930.95 per share compared to its previous closing price of Rs. 1,907.10 per share.
What happened
Hyundai Motor India Ltd, engaged in the manufacturing, sales, and export of passenger vehicles, acting as India’s second-largest car manufacturer and exporter, is in the spotlight following its Q4 results and Brokerage views as follows:
Its Revenue from operations rose by 4.9 percent YoY from Rs. 17,940 Crores in Q4FY25 to Rs. 18,916 Crores in Q4FY26, and it rose by 5.2 percent QoQ from Rs. 17,973 Crores in Q3FY26 to Rs. 18,916 Crores in Q4FY26.
Its net profit declined by 22.1 percent YoY from Rs. 1,614 Crores in Q4FY25 to Rs. 1,256 Crores in Q4FY26, and it rose by 1.78 percent QoQ from Rs. 1,234 Crores in Q3FY26 to Rs. 1,256 Crores in Q4FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 15.45, compared to Rs. 19.87 in the previous year’s quarter. The company has recommended a final dividend of Rs. 21 per equity share (face value ₹10 each), fully paid-up, for the financial year 2025–26, subject to approval by shareholders at the upcoming Annual General Meeting (AGM).
Other Updates
The company highlighted a solid manufacturing expansion with the commencement of its Pune plant, which is expected to support future growth and strengthen production capacity. New product momentum, especially the Venue from the Pune facility, along with a 5-star Bharat NCAP safety rating, reinforced its focus on product and manufacturing excellence.
On the sales and market side, HMIL achieved its highest-ever quarterly domestic sales in Q4 FY26, supported by GST 2.0-related demand tailwinds and agile product strategies, with wholesale volumes growing 8.7% year-on-year.
Rural penetration reached a record 25%, while CNG models contributed a high 18% share, reflecting growing demand in both rural and commercial mobility segments. Models like Aura delivered all-time high quarterly and annual sales, and newer offerings such as Verna and Exter continued to strengthen the portfolio with modern design and features.
Exports also showed resilience, rising 9.4% year-on-year in Q4 FY26 despite geopolitical challenges, and closing the full year with strong 16.4% growth. This performance further reinforces Hyundai’s role as a key export hub for emerging markets, balancing strong domestic momentum with sustained global demand. Brokerage views on the result
Macquarie on Hyundai Motor
Macquarie maintained an Outperform rating on Hyundai Motor India with a target price of ₹2,235, noting that the recent quarter was muted in performance. Despite the softness, the outlook remains constructive due to upcoming product introductions expected to support growth.
The company reported an EBITDA margin of 10.4%, while management has guided for a gradual improvement to 11–14% by FY27. Domestic volume growth guidance has been set at 8–10%, indicating steady but not aggressive expansion in the near term.
Growth visibility is expected to improve with two planned launches in FY27—a new electric SUV and an internal combustion engine (ICE) SUV. These new models are seen as key drivers for both volume and margin improvement going forward.
Nomura on Hyundai Motor
Hyundai Motor India remained a Buy for Nomura, though the target price was cut to ₹2,407. The brokerage noted that both revenue and EBITDA came in below estimates, reflecting near-term operational pressure.
The miss was attributed mainly to higher material costs and disruptions linked to labour code-related issues. Despite this, the broader demand environment remains stable with some execution-related headwinds rather than structural weakness.
Nomura expects margins to have bottomed out and sees a gradual recovery ahead. The company has guided for 8–10% growth in both domestic and export markets, and has an aggressive pipeline of 26 launches planned through FY30, supporting long-term growth visibility.
CLSA on Hyundai Motor
Hyundai Motor India remains Outperform for CLSA, though the target price has been cut to ₹2,290. The brokerage highlighted that 4Q FY26 EBITDA margin came in at 10.4%, missing estimates by 70 bps and declining 84 bps QoQ.
The margin miss was driven by multiple pressures, including a one-off 50–60 bps vendor compensation impact, ~40 bps hit from labour codes, commodity inflation, and an adverse product mix. SUV mix alone impacted margins by ~600 bps, while export mix added another ~500 bps drag.
These pressures were partly offset by lower discounts (down to 1.9% of ASP vs 2.6% in 3Q), operating leverage, a 0.6% price hike, and state incentives contributing around 50 bps. Despite near-term cost headwinds, management remains confident of maintaining margins.
For FY27, the company has guided for 8–10% volume growth supported by capacity expansion and two new launches—a compact e-SUV and a mid-size SUV. Management also continues to target an EBITDA margin range of 11–14%, indicating expected recovery over time.
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