Hyundai Stock Jumps Over 5% Despite 24% Fall In Q2 Profit

Hyundai Motor India shares rallied more than 5% in early trading on Thursday despite reporting a sharp decline in second-quarter profits, as brokerages expressed differing views on the automaker's growth outlook.

The stock climbed 5.4% to ₹1,968.50, taking the company's market capitalisation to approximately ₹1.6 lakh crore.

Despite the recovery, Hyundai shares remained 14.8% lower in 2026, compared with a 13.2% decline in the benchmark Nifty 50 index.

Profit Falls 23.9% Despite Revenue Growth

Hyundai Motor India reported a 23.9% year-on-year decline in consolidated net profit to ₹1,196 crore for the second quarter of FY27, against ₹1,572 crore in the corresponding period last year.

However, revenue increased 18.5% to ₹20,696 crore, crossing the ₹20,000 crore quarterly milestone for the first time.

Higher operating costs weighed on profitability, with total expenses rising 24% and material costs increasing 29%.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 18.7% to ₹1,974.5 crore.

The operating margin contracted by 440 basis points to 9.5%, reflecting pressure from rising expenditure despite stronger sales.

Domestic vehicle sales grew 18.82% to 1.66 lakh units, while exports increased 3.7% to 53,300 units.

The figures indicated improved demand, although higher costs affected the company's earnings performance.

Brokerages offered contrasting assessments following Hyundai's quarterly results.

As per a Moneycontrol report, Morgan Stanley expects a recovery in vehicle volumes, operating margins and market share, indicating optimism about the company's medium-term performance.

Jefferies, however, remains cautious because of intensifying competition in India's sport utility vehicle (SUV) segment.

Hyundai Motor India Managing Director and Chief Executive Officer Tarun Garg expects business momentum to strengthen during the second half of FY27.

The company's growth plans include the Bayon, launched on Oct 26, and a dedicated mass-market electric vehicle scheduled for introduction during the fourth quarter of FY27.

These launches are expected to support Hyundai's efforts to strengthen its position in India's competitive passenger vehicle market.