Hyundai Motor India profit may take a hit in Q4 as sales remain in slow lane

But that has changed since its listing in Indian markets in October last year. When the Indian arm of South Korea-based Hyundai declares its earnings for the January to March quarter on 16 May, it will have to face some probing questions from independent investors, who own roughly about 17% of the company.

There are two key challenges for the company now: stagnating sales and tough competition.

As per Federation of Automobile Dealers Association, Hyundai’s sales in the financial year 2025 declined 0.6% to 559,149 units. 

The company is facing a challenge from homegrown auto giants Mahindra and Mahindra and Tata Motors for the second place on the sector’s podium. Both Tata and Mahindra are fairly close to the company, retail data shows. Tata Motors sales declined by 0.7% to reach 535,960 cars in FY25. Mahindra recorded a surge of 20% in sales to 512,626. 

While Hyundai took relief from the fact that it was able to retain its second place, the fiscal year 2026 started on a rough note. 

Hyundai slipped to the fourth position with 44,314 passenger vehicle sales in April, while Mahindra leaped to the second position with 52,330 PV sales. 

The company’s stock has not given much material gain since it October listing with the markets so far gaining just 0.5%. However, the Creta-maker has still managed to outperform the broader indices as Nifty Auto has posted a 4% decline since the company listed.

It appears investors still believe that the company has the fuel to take the fight to Tata and Mahindra. 

In this backdrop, Mint highlights five things that will be key to watch out for when the company declares its March quarter  earnings on Friday.

Also Read | Ayes vs noes: Hyundai India’s resolutions on deals with related cos divide leading proxy advisory firms

Revenue 

Bloomberg estimates from a poll of 12 analysts suggest that the company will post a 1.8% year-on-year decline in revenue to ₹17,349 crore. Its earnings before interest, taxes, depreciation, and amortization, or Ebitda, is expected to decline 190 basis points to 12.1%.

The company’s passenger vehicle sales declined 1.1% year on year to 191,700 in the January to March period.

“Hyundai posted a 1% YoY decline in volumes in 4Q. Strong growth in exports (+14% YoY) helped to offset the weakness in domestic markets (-4% YoY),” analysts at Motilal Oswal Financial Service wrote in a 7 April note. 

This will be the second consecutive quarter of declining revenue since the company went public. 

Net profit

Net profit is expected to decline 21% year on year to ₹1,332 crore in the January to March period, as per Bloomberg estimates from a poll of 14 analysts. 

Falling sales and margins are expected to hit profits of the company. Moreover, the increasing share of investments in electric vehicle (EV), which remains a loss-making segment, is also expected to have some impact on profit. 

Battling competitors

Hyundai, whose success in the SUV segment is crucial, has to take on the lineup of market leader Mahindra to increase sales.

Led by Creta, Hyundai India’s lineup has in total seven cars in the SUV segment which contribute about 68% of the overall sales. 

While sales of Hyundai remain stagnant, Mahindra posted 20% growth in sales of its SUVs last year.

Investors would want to know how the company plans to take on Mahindra in the segment which has put the second under threat.

EV plans

The Creta EV, launched in January, helped provide some boost to the overall electric vehicle sales during the year. 

In the last fiscal year, it sold 2,410 electric vehicles in the country, a growth of 30% from the year-ago period.

The company has said it plans to have 10% of its overall Creta sales from the electric variant. Investors would have two things to ask. One, how does the company plan to ramp up the sales of such vehicles?  Second, how is the increasing investment in EVs impacting the margins of the company?

Demand outlook

The auto sector is divided on the demand outlook for the country’s car market. On one hand, India’s largest car seller, Maruti Suzuki Ltd, is not hopeful of any meaningful pickup in the overall sales of vehicles in the country. But on the other hand, Mahindra remains sanguine about the overall demand for cars in the market as its products are finding a good response from consumers. 

All carmakers, including Hyundai, have implemented price hikes during the year, ranging from 1-4%, which some analysts feel will weigh on consumers’ decision to buy.

How the Hyundai management sees the demand outlook will be a key thing to track after the firm announces its results.