Hyundai Motor India shares rise 8% on healthy FY27 guidance despite 34% drop in Q1 profit

Shares of Hyundai Motor India Ltd skyrocketed on Friday, July 31, after the automobile company's management gave a health guidance for the financial year 2026-27.

The stock rose as much as 7.76% to ₹2,175 per share on the National Stock Exchange (NSE).

Hyundai Motor India Q1 results

Hyundai Motor India Ltd reported a 33.89% decline in standalone profit after tax to ₹883 crore in the first quarter of the current fiscal year, hit by production constraints due to a fire incident at one of its suppliers and decline in exports due to the West Asia war. The company had posted a standalone net profit of ₹1,335.75 crore in the same period of the previous fiscal year.

However, Tarun Garg, the company's Managing Director & Chief Executive Officer, assured that Hyundai Motor India is committed to "achieve its stated guidance of 8-10% (YoY) volume growth for both domestic and exports as well as 11-14% EBITDA margin in FY27."

"Q1 FY27 was a challenging quarter affected by multiple headwinds impacting volumes and profitability. With 100% normalization of production, coupled with healthy demand environment and upcoming product pipeline, recovery is likely to gain pace from Q2 onwards across both domestic and export businesses," he added.

Standalone revenue from operations stood at ₹15,865.38 crore in Q1 FY27, down 1% from ₹16,025 crore in the year-ago period.

While the company made a vert strong start in FY27 with cumulative sales in April and May growing by 13% year-on-year, backed by favourable demand environment and strategic product actions, the fire incident at Mobis facility temporarily affected vehicle production in June, restricting the company's ability to fully meet market demand.

In an investor presentation, Hyundai Motor said it sold 1,78,082 units in the first three months of FY27, down 1.3% from 1,80,399 units in the same period last fiscal.

Domestic sales stood at 1,39,374 units vs 1,32,259 units in Q1 FY26, up 5.4%.

On the other hand, exports fell 19.6% at 38,708 units in Q1 FY27 as against 48,140 units a year back.

"The US-Iran conflict, which started towards the end of last fiscal, continued to impact our Middle East exports during quarter one of FY27. Further, export volumes were also affected by the temporary production disruption in June," Garg said.