Hyundai Motor India shares jump 5% after Q4 FY26 profit fall

Stock rallies as brokerages stay constructive

Hyundai Motor India shares climbed nearly 5% on Monday, May 11, even after the company reported a sharp year-on-year decline in quarterly profit. On the NSE, the stock rose 4.92% to an intraday high of ₹1,944, before easing. At 1:00 PM, it traded at ₹1,908.90, up 3.03% from the previous close of ₹1,852.80.

The move came as multiple brokerages maintained positive calls such as ‘Buy’ or ‘Add’, focusing on revenue growth, the dividend recommendation, and management commentary on FY27 volume growth. The results were for the January to March quarter of FY26.

Q4 FY26: profit down 22%, revenue up over 5%

For Q4 FY26, Hyundai Motor India reported a 22.22% year-on-year decline in profit after tax to ₹1,255.6 crore, compared with ₹1,614.3 crore in Q4 FY25. On a sequential basis, profit rose 1.72% from ₹1,234.4 crore in Q3 FY26.

Revenue from operations increased 5.44% year-on-year to ₹18,916.2 crore, compared with ₹17,940.3 crore a year earlier. On a quarter-on-quarter basis, revenue rose 5.24% from ₹17,973.5 crore in Q3 FY26.

Separately, the company’s reported total income for Q4 FY26 stood at ₹19,175.53 crore, up 5.3% quarter-on-quarter and 5.7% year-on-year, according to the figures cited alongside the results.

Costs and margins remain the key talking point

Brokerage notes and the company’s numbers pointed to cost pressures during the quarter. Total expenses for Q4 FY26 were reported at ₹17,571.66 crore, up 6.2% quarter-on-quarter and 10.0% year-on-year.

Nomura flagged that revenue, average selling price, and EBITDA margin were below its estimates, with EBITDA margin reported at 10.4%. Motilal Oswal also said EBITDA margins missed expectations due to commodity inflation, plant start-up costs, and an adverse product mix.

Dividend recommendation: ₹21 per share

Alongside the quarterly results, Hyundai Motor India said its board recommended a dividend of ₹21 per share for the financial year ended March 31, 2026. The dividend remains subject to shareholder approval at the upcoming Annual General Meeting.

The dividend announcement was one of the immediate positives highlighted by investors and market participants after the earnings release.

FY26 full-year numbers: revenue up, profit down

For the full financial year FY26, Hyundai Motor India reported a 2% year-on-year rise in revenue to ₹70,763 crore. Net profit for FY26 declined 4% year-on-year to ₹5,543 crore.

The mix of modest revenue growth and lower profits kept the focus on operating costs and margin trajectory going into FY27.

Brokerage views: targets cut, ratings largely intact

Nomura maintained a ‘Buy’ rating but reduced its target price to ₹2,407 per share from ₹2,698. The revised target implied an upside potential of nearly 30% from the prior close of ₹1,852.80.

Motilal Oswal maintained its ‘Buy’ rating and set a target price of ₹2,160. It said the profit was ahead of its estimate largely due to higher-than-expected other income, while flagging margin headwinds from commodities and plant-related costs.

JM Financial reiterated ‘Add’ with a target price of ₹1,950, valuing the company at 23x FY28E EPS. HDFC Securities upgraded the stock to ‘Add’ and raised its target price to ₹2,103, implying an upside of 8.17% from the then current market price.

Guidance and growth drivers: launches, exports, network

Nomura said Hyundai Motor India could outperform the market, projecting a domestic volume CAGR of 13% over FY26 to FY28F, driven by a new model cycle with 26 planned launches through FY30. It also pointed to improved disclosures on the pipeline and export guidance.

Management guided for 8–10% growth in domestic volume and 8–10% export volume growth. JM Financial said the company’s management guided for 8–10% export growth, supported by shipments of Exter and Verna, and improving traction in the all-new Venue.

Nomura also referenced two upcoming SUV launches that could support above-industry growth of 8–10% in FY27F, alongside an assessment that margins have bottomed out.

Capex and margin range: investment remains in focus

Hyundai Motor India said it plans capital expenditure of around ₹7,500 crore to support growth in India. It also said it aims to deliver EBITDA margins within the guided range of 11–14%.

Motilal Oswal cautioned that start-up costs for the new Pune plant could affect earnings in the near-to-medium term, even as it stays constructive on the company’s longer-term launch pipeline and the premiumisation trend.

Market check: recent performance and what investors tracked

On Monday’s trade, the stock’s rise came in an otherwise weak market, as per the reported trading context. Over the past week, the stock gained over 2% and rose 5% over the last month, though it remained down more than 18% so far in 2026.

The immediate market debate centred on whether revenue growth, shareholder returns, and FY27 growth guidance can offset near-term cost inflation and product mix pressures that weighed on Q4 profitability.

Key numbers at a glance

Conclusion: earnings pressure, but outlook stays central

Hyundai Motor India’s Q4 FY26 results showed a clear split between topline growth and profit pressure, with costs and margins taking centre stage. Still, the stock rose as brokerages largely kept positive ratings, pointing to the model launch pipeline, export momentum, and management’s 8–10% FY27 volume growth guidance.

Next investor focus will remain on shareholder approval of the ₹21 dividend at the AGM, progress on new launches, and how costs and plant-related expenses evolve against the company’s guided EBITDA margin range of 11–14%.