Hyundai Q1 results: Net profit declines 8% amid headwinds in domestic market

The Creta drove Hyundai's domestic volumes in the first quarter.

Hyundai Motor India today reported a decline of 8.08% year-on-year (y-o-y) in its consolidated net profit at Rs 1,369.23 crore for the quarter June 2025, owing to an underwhelming performance in the domestic market.

The net profit stood at Rs 1,489.65 crore in the year-ago quarter.

The company's total revenue from operations slipped 5.37% y-o-y at Rs 16,412.87 crore in Q1 FY26 from Rs 17,344.23 crore in Q1 FY25.

In the June quarter, Hyundai's earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 6.63% y-o-y at Rs 2,185.2 crore, while the operating margin fell by 20 basis points y-o-y at 13.3%.

Amid headwinds, Hyundai's domestic volumes declined 11.5% y-o-y at 1,32,259 units for the three months ended June 2025. However, with the company enhancing its focus on exports, shipments rose 13% y-o-y at 48,140 units. The overall volumes slipped 6.1% y-o-y at 1,80,399 units during the quarter.

The Creta was the largest-selling SUV in the domestic market in Q1 FY26 at 47,662 units. Other SUVs like the Venue (22,331 units) and the Exter (17,188 units) also supported the domestic volumes.

The average selling price (ASP) of Hyundai cars increased by 0.66% y-o-y at Rs 7,65,000 in Q1 FY26 from Rs 7,60,000 in Q1 FY25.

Hyundai Volumes: Q1 FY26 vs Q1 FY25

In terms of body-style mix in the domestic volumes, SUVs had the highest share at 69%, followed by hatchbacks at 18% and sedans at 13%. With regard to the fuel mix, 63% of the domestic volumes came from petrol variants, 29% from diesel, 16% from CNG and 1.4% from electric in the first quarter.

According to the company, the rural penetration in the domestic volumes reached its highest-ever level at 22.6% during the quarter, driven by SUV models.

Talking about the domestic sales performance during the quarter, Hyundai Motor India Managing Director Unsoo Kim said: "The prolonged softness in demand continued to weigh on the overall industry sentiments, driven by persistent macro challenges and further intensified by the uncertain global environment. In these challenging times, we continue to remain agile and focus on advancing our core areas, such as enhancing brand presence, periodic product updates, expanding our footprints and a consistent drive to enhance our rural presence."

"While the near-term market sentiment continues to be muted, we expect a gradual recovery in industry demand, on the back of good monsoon, festive season, coupled with government measures - such as interest rate cut, income tax relief and upcoming pay commission," he added.

On the company's margins, Kim said that in a highly competitive landscape, with heightened price pressures, Hyundai closed the quarter with a strong EBITDA margin of 13.3%. "This resilience was driven by 'Quality of Sales', enhanced focus on boosting exports and disciplined cost control measures," he noted.

During the quarter under review, Mahindra & Mahindra drove ahead of the Creta-maker to become the second largest passenger vehicle (PV) manufacturer in the domestic market in terms of volumes, selling 1,52,067 units, as the demand remained robust for its SUVs like the Scorpio, XUV700, Thar Roxx and XUV 3XO.