Hyundai Motor India shares advanced 1.15% to ₹2,203 following the company's announcement of a price hike of up to 1% across its vehicle portfolio, effective September 2026. According to Business Standard, the positive market reaction reflects investor confidence in the automaker's strategic pricing approach. The price increase will be implemented across the entire portfolio, with the quantum of increase varying by model and variant, as announced in the company's regulatory filing dated August 19. Nomura has maintained its 'Buy' rating on the stock, citing the company's strategic positioning for growth.
The company attributed the price revision to multiple factors affecting its operations. As reported by Hyundai Motor India, the price increase is driven by rising input and commodity costs, higher operational expenses and continuing geopolitical and macroeconomic uncertainties. The automaker stated that while it continues to make every endeavor to optimise costs and absorb cost escalations to minimise the impact on customers, the persistence of these cost pressures has necessitated passing on a part of the increased costs to customers through this marginal price revision. Automakers have pointed to inflationary pressures, higher commodity prices, elevated operating costs and disruptions to global trade routes and energy markets stemming from geopolitical tensions as factors weighing on costs.
Nomura expects Hyundai Motor India's volume growth to strengthen from 2HFY27F, driven by new launches, with EBITDA margins seen recovering to 11-14%. The company plans 26 new launches over FY26-30E, including a mid-size ICE SUV in the festive season and a compact EV SUV after the festive season in FY27E. No hybrid launches are planned for the next 1-2 years, although HMI aims to have 5-6 hybrid products by FY30E. Nomura estimates domestic volume CAGR at 11% over FY26-29F and EBITDA margins at 11.5%, 12.7% and 13.4% in FY27F, FY28F and FY29F, respectively, leading to an EPS CAGR of 26% over FY27-29F.
The company plans 150,000 units of capacity addition at the Pune plant, taking total capacity to 1.1 million units by CY30E. HMI aims to increase Pune capacity from around 120,000 units to around 170,000 units by October 2027. Nomura said Hyundai Motor India remains confident of achieving 8-10% volume growth in FY27E across domestic and export markets, with a market share target of 15%+ by FY30E. "A volume recovery was seen in 2Q, after the disruptions in 1Q," Nomura said, adding that new launches in 2HFY27E are expected to boost the volume trajectory.
Hyundai Motor India's consolidated profit after tax (PAT) came in at ₹888.6 crore in the first quarter of financial year 2027, compared with ₹1,369.2 crore in the corresponding quarter last year. Revenue from operations slipped 0.5% to ₹16,334.6 crore from ₹16,412.9 crore a year ago. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 31% year on year to ₹1,511 crore from ₹2,186 crore, with EBITDA margin contracting to 9.3% from 13.3% in the year-ago quarter. Total expenses increased 4.2% year on year to ₹15,407.4 crore from ₹14,780.5 crore, outpacing revenue growth and weighing on overall profitability during the quarter.
