1. At a Glance — Blink and You’ll Miss the Cash Flow
Hyundai Motor India Limited (HMIL) is not just selling cars; it’s printing balance sheets with 54.2% ROCE, 42.2% ROE, and a PAT of ₹5,683 Cr (TTM) while being almost debt-free. Market cap stands tall at ₹1.78 lakh crore, price at ₹2,198, and valuation at ~31x earnings, politely matching the industry median like a well-behaved topper.
Latest quarter (Q3 FY26 – Dec 2025) delivered ₹17,453 Cr revenue and ₹1,195 Cr PAT — not explosive, but steady, disciplined, and annoyingly consistent. Three-month returns are negative, one-year returns are +25%, and five-year sales growth is… let’s say “not fast, but not dead.”
This is not a turnaround story. This is not a penny stock miracle. This is a cash-rich, brand-heavy, boringly excellent machine. The real question: is the market already paying for perfection?
2. Introduction — The Most Boring Flex in Indian Autos
Hyundai came to India in 1996, saw Maruti’s domination, and decided violence was not the answer — efficiency was. Over nearly three decades, HMIL quietly built a portfolio that touches hatchbacks, sedans, SUVs, and EVs, sold ~12 million vehicles, and became India’s second-largest exporter of passenger vehicles between 2021 and 2024.
While competitors chase volume with wafer-thin margins, Hyundai chose the Korean uncle strategy: sell less than Maruti, earn more per car, sleep peacefully. That’s how you end up with negative working capital, cash conversion cycles of –14 days, and auditors who smile instead of sweat.
But here’s the tension: sales growth has slowed to low single digits, SUVs are crowded, EVs are capital-hungry, and
royalty payments to the Korean parent quietly skim 3.5% off revenues. This is excellence with fine print.
So yes, Hyundai is elite. But elite at what stage of the cycle?
3. Business Model — WTF Do They Even Do?
Hyundai India manufactures and sells 13 passenger vehicle models — from the humble Grand i10 to the aspirational IONIQ 5. Revenue comes primarily from domestic sales (~77.5%), with exports (~23.7%) acting as a volatility cushion.
Why the model works:
- SUVs like Creta, Venue, Alcazar do the margin lifting
- Sedans (Verna, Aura) keep brand recall alive
- Hatchbacks maintain service footfall
- EVs are currently PR + optionality, not profit engines
Hyundai doesn’t just sell cars. It sells service annuities via 1,561 service outlets across 957 cities — the second-largest network in India. Once a customer enters the Hyundai ecosystem, leaving becomes emotionally and mechanically expensive.
Add 93% localisation, suppliers hugging the Chennai plant, and inventory discipline so tight it scares CFOs — this is manufacturing with monk-level restraint.
4. Financials Overview — Numbers That Don’t Shout, They Judge
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 17,453 | 16,242 | 17,061 | 7.46% | 2.30% |
| EBITDA | 1,960 | 1,825 | 2,383 | 7.39% | -17.7% |
| PAT | 1,195 | 1,124 | 1,570 | 6.30% | -23.9% |
| EPS (₹) | 14.71 | 13.83 | 19.33 | 6.3% | -23.9% |
