Hyundai’s standing as India’s No.2 carmaker was not often challenged within the almost three a long time because it entered the market with the Santro. In any case, the South Korean carmaker has created one class after one other in India’s fast-growing automobile trade—suppose the i20 (premium hatchback), the Creta (compact SUV) and, after all, the Santro (tallboy).
However, issues change.
Gross sales of the Creta maker fell 0.66% year-on-year to five,59,149 items in 2024-25—the yr it launched India’s largest preliminary public providing to listing on the inventory exchanges. Its assured No.2 standing has come below menace from traditionally smaller friends Tata Motors Ltd. and Mahindra & Mahindra Ltd.
Towards that backdrop, analysts will search for cues in Hyundai India’s fourth-quarter outcomes for outlook on demand in fiscal 2026 amid rising competitors and slowing gross sales.
The tidings aren’t wanting good, although.
Internet revenue of Hyundai India probably fell by a minimum of a fifth from the year-ago interval to Rs 1,332 crore within the three months ended March 31, 2025, whilst income remained stagnant at Rs 17,350 crore, in keeping with analysts polled by Bloomberg. Operational revenue—measured as earnings earlier than curiosity, tax, depreciation and amortisation—decreased 16.65% to Rs 2,101.7 crore, at a margin that shrunk 160 foundation factors to 12.7%.
One foundation level is one-hundredth of a share level.
“Income is prone to decline by 1% YoY resulting from a fall in gross sales volumes and better reductions, which can be partially offset by enhance in common promoting value,” Rishi Vora of Kotak Institutional Equities stated in a observe.
At 1,91,650 items, Hyundai India bought 1% fewer automobiles in This fall FY25.
Nirmal Bang’s Varun Baxi weighed in on margins.
“We construct in a margin decline of 204 bps, largely resulting from unfavourable working leverage, on account of quantity decline and better uncooked materials prices booked throughout the quarter, together with larger advertising spend referring to the launch of the Creta EV.”
Nonetheless, that’s a factor of the previous. In any case, the broader automobile trade grew by lower than 5% in fiscal 2025, in keeping with VAHAN information.
Analysts consider fiscal 2026 brings with it good tidings—earnings tax cuts, implementation of the Eighth Pay Fee and a festive season that after is packed in a single month.
Right here’s a take a look at what brokerages anticipate from Hyundai India’s fourth-quarter outcomes.
Nomura: We estimate ~1% year-on-year decline in income led by total quantity decline of 1%. Ebitda margin is prone to enhance 170 bps sequentially to ~13%, led by value hikes and decrease reductions.
Morgan Stanley: There are two positives: A greater SUV combine and sequential quantity development driving leverage beneficial properties. There may be one unfavourable: Creta EV deliveries began in This fall FY25. That would lead to margin dilution.
JPMorgan: Hyundai ought to witness a sequential enchancment in margins, however year-on-year traits needs to be weak resulting from decrease volumes.
Nirmal Bang: We construct in a margin decline of 204 bps, largely resulting from unfavourable working leverage, on account of quantity decline and better uncooked materials prices booked throughout the quarter, together with larger advertising spend referring to the launch of the Creta EV.
Of the 21 analysts monitoring the Hyundai India inventory, 18 have a ‘purchase’ ranking, one ‘maintain’ and two ‘promote’. The inventory ended 2.01% larger at Rs 1,836.25 a day forward of earnings, even because the benchmark Sensex rose 1.48% to 82,530.74 factors.
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