Hyundai India maintains FY27 outlook even as Q1 revenue shrinks
Hyundai Motor India Ltd. on Thursday maintained its Fiscal 2027 volume growth and operating margin outlook, expecting new launches and stronger demand to offset disruptions
Hyundai Motor India Ltd. on Thursday maintained its Fiscal 2027 volume growth and operating margin outlook, expecting new launches and stronger demand to offset disruptions that hurt quarterly profit. Revenue of the Creta maker fell 0.5% while net profit decreased 35% to ₹889 crore due to higher costs and disruption in production at its Chennai plant.
Still, the company held its EBITDA margin outlook of 11-14% for FY27 even as its first-quarter margin fell to 9.3% from 13.3% a year earlier. “The new model cycle starts from October with the new mid SUV in the festive season. So that should also help us to improve the volumes,” CEO Tarun Garg said on a post-earnings conference call.
Hyundai expects CNG cars, which accounted for a record 18% of quarterly sales, to also drive growth. India's auto market recovered after New Delhi cut GST last September, but Hyundai India said higher raw material costs and weaker exports due to the Middle East conflict weighed on earnings. Higher steel and commodity prices continued to pressure margins despite price hikes during the quarter.
The automaker plans to launch a mid-sized SUV in the Creta segment during the festive season, followed by an electric vehicle in the Venue segment later in the fiscal. It also plans to expand its CNG lineup to six models by 2030 from three currently.
The BriefWire