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    Hyundai Motor India Limited

    HYUNDAINeutral
    Automobile and Auto Components·30 Oct 2025
    Management Summary

    Hyundai Motor India delivered strong profitability despite modest volume decline, driven by favorable product mix, export growth, and operational efficiency. The company benefited from GST 2.0 reforms and festive demand, while preparing for new product launches and capacity expansion.

    Highlights

    7

    • Total sales of 190,921 vehicles vs 191,939 in Q2 FY'25

    • Exports grew 21.5% YoY with strong momentum in Middle East & Africa (35% growth)

    • Strong EBITDA margin at 13.9% vs 12.8% in Q2 FY'25

    • SUV penetration reached highest-ever 71%

    • Rural sales contribution reached record high of 23.6%

    • New Venue launch scheduled for November 4, 2025

    • Pune plant production commenced October 1, 2025

    What Changed3

    vs Q2 FY26

    Tone shiftConfident and disciplined; focused on quality of sales over volume chase → Confident and optimisticGuidance items5 → 3 (-2)Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue from Operations₹17,460.8 Cr+1.2%YoY
    2. 02EBITDA₹2,428.9 Cr+10.1%YoY
    3. 03EBIT₹1,911.4 Cr+13.3%YoY
    4. 04PAT₹1,572.3 Cr+14.3%YoY
    5. 05Total Sales Volume1,90,921 vehicles-0.5%YoY

    Guidance & targets

    3
    CategoryTargetPriority
    Export Growth
    Export volume growth
    Exceed 7-8% guidance
    		High
    Localization
    Localization level
    90%
    		Medium
    Investment
    Total capex
    ₹45,000 crores
    		High

    Risks & concerns

    3
    RiskSeverity

    Nexperia chip component shortage

    Industry-wide e-component issue being managed through inventory monitoring and vendor partnerships — Other acknowledged

    medium

    New plant ramp-up costs

    20-25% increase in depreciation, labor, and overhead costs from new plant operations — Other acknowledged

    medium

    Venue model transition gap

    Limited old Venue availability constrained Q2 sales but positions for strong Q3 launch — Other acknowledged

    low

    Q&A highlights

    3

    “retails actually grew by 23%. Exter plus Venue grew by 28%”

    Strong festive performance indicates GST benefit realization

    asked by Chandramouli Muthiah (Goldman Sachs)

    1 min read4 chapters

    Detailed Narrative

    01

    GST 2.0 Impact and Market Dynamics

    GST 2.0 reforms created significant positive momentum, particularly for entry and sub-compact SUVs. The company saw strong festive retail growth of 23%, with Exter and Venue segments growing 28%. This reform-driven demand partially offset earlier customer purchase postponements.

    02

    Export Performance Excellence

    Exports delivered exceptional growth of 21.5% YoY, with Middle East & Africa up 35% and Mexico up 11%. Strong demand across regions led to upward revision of FY'26 export guidance, positioning HMI as a key global manufacturing hub.

    03

    Margin Resilience Strategy

    Despite volume challenges, EBITDA margin improved to 13.9% through favorable product/export mix and cost optimization. Material cost reduction of 110 basis points came from localization (now 82%) and value engineering initiatives.

    04

    Product Portfolio Transformation

    SUV penetration reached record 71% with rural contribution hitting 23.6%. New Venue launch on November 4, 2025, expected to restore growth momentum in compact SUV segment with upgraded features and design.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.