01 — At a Glance
India’s EV Hopeful. With a Juggernaut’s Pedigree.
- 52-Week High / Low₹2,890 / ₹1,542
- FY25 Revenue (Full Year)₹68,101 Cr
- FY25 PAT (Full Year)₹5,683 Cr
- Full-Year EPS (FY25)₹69.96
- Annualised EPS (Q1-Q3 Avg×4)₹67.32
- Book Value₹209
- Price to Book10.0x
- Dividend Yield1.00%
- Debt / Equity0.05x
- 6-Month Return-18.1%
Auditor’s Opening Note: Hyundai Motor India closed FY25 with ₹68,101 crore revenue (-1.3% YoY due to volume headwinds), ₹5,683 crore PAT, and a fortress balance sheet. It’s also trading at 10x book value in a market that’s collectively questioning whether SUVs can get any pricier. New MD Tarun Garg took over Jan 1, 2026, with a ₹45,000 crore spending roadmap through FY2030. The Talegaon plant started production Oct 1, 2025. Return on capital is elite — but return on equity since IPO has been 22% down from a ₹2,350 peak. Narrative whiplash, basically.
02 — Introduction
The Korean Automaker That India Actually Respects
Hyundai Motor India Limited (HMIL) listed on the NSE in October 2024. India’s largest IPO at that time. The company promptly rewarded investors with a 22% loss in six months. Not great. Also, not atypical for IPOs launched at frothy valuations during a financial markets euphoria phase.
But let’s separate the IPO pricing spectacle from the actual business underneath: Hyundai owns ~13% of India’s passenger vehicle market (down from 17.5% a decade ago, but that’s market competition, not company malfunction). It’s the second-largest exporter of cars from India. It sells 12 models, including the Creta (biggest revenue contributor), the Grand i10 Nios, and the brand-new ioniq5 electric. It prints 54% ROCE — which means for every rupee of capital it deploys, it earns 54 paise in returns. Most companies earn 14–16 paise.
The parent company, Hyundai Motor Company (HMC), is South Korea’s largest automaker and the world’s third-largest by vehicle sales. HMIL is HMC’s global sourcing hub for passenger vehicles, its second-largest production facility outside Korea, and its India launchpad for EV ambitions.
New MD Tarun Garg (yes, an Indian national, first time ever at HMIL) took over on January 1, 2026. He’s already announced a ₹45,000 crore capex roadmap through FY2030, with 26 model launches, an EV SUV by 2027, and a ₹1 lakh crore revenue target. It’s audacious. It’s also unrealistic unless the company dramatically improves export volumes or pivots into segments it’s currently losing. Let’s dig into what the numbers actually say versus what the PR department wishes they said.
Feb 2026 Concall Note: “We’re seeing strong SUV demand domestically and expect that trend to continue. EVs are still nascent but growing. Exports will be key.” — Company guidance. Translation: Domestic volume growth is stalling. EVs don’t move the needle yet. We need exports to bail us out.
03 — Business Model: The SUV Bet in an SUV Market
Passenger Cars. With a Korean Accent.
HMIL manufactures passenger vehicles at its two plants: the flagship in Sriperumbudur (Chennai, Tamil Nadu) with 824,000 units annual capacity, and the newly operational Talegaon plant (Pune, Maharashtra) with 250,000 units capacity. Combined capacity: 1.07 million units annually — one of Hyundai’s largest footprints outside South Korea.
Revenue split is roughly 77.5% from domestic sales, 4% from Africa, 6.5% from Latin America, and 9% from Middle East & Europe. The portfolio spans 13 models: budget compacts (Grand i10 Nios, i20), sedans (Aura, Verna), and a sprawling SUV lineup (Creta, Venue, Exter, Alcazar, Tucson, ioniq5). SUVs now constitute 68.5% of domestic sales — which means if you’re not building SUVs, you’re not winning in India anymore.
Localisation stands at 82% (FY25), up from 78% in FY24. That’s good — it hedges forex risk. The company pays a 3.5% royalty to parent HMC on sales, which is the price of accessing global technology and product lineups. With 1,419 sales outlets and 1,606 service outlets across India as of March 2025, distribution is deep. Rural contribution to sales: 20.9%. That number is painfully low for a mass-market automaker in 2025.
Domestic Mix77.5%Revenue Share
Export Mix22.5%Revenue Share
SUV Sales68.5%Of Domestic Volume
Localisation82%Parts Sourced Locally
Royalty Reality Check: HMIL paid ₹1,877 crore to HMC in FY25 as royalty. That’s ~2.8% of revenue in cash that flows out every year to Seoul. It’s the price of being a subsidiary, not an independent OEM. Management doesn’t emphasise this number, but your returns are always capped by this outflow.
💬 Quick question: Would you rather own a high-ROCE subsidiary (54%) with capped dividend upside, or a lower-ROCE independent automaker? Drop your take.
04 — Financials Overview
Q3 FY26: The Numbers Nobody’s Talking About
Result type: Quarterly Results (Dec 2025) | Q3 FY26 EPS: ₹14.71 | Annualised EPS (Q1-Q3 Avg×4): ₹67.32 | Full-year FY25 EPS: ₹69.96
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 17,453 | 16,876 | 17,061 | +3.4% | +2.3% |
| Operating Profit | 1,960 | 2,138 | 2,383 | -8.3% | -17.8% |
| OPM % | 11% | 13% | 14% | -200 bps | -300 bps |
| PAT | 1,195 | 1,338 | 1,570 | -10.7% | -23.9% |
| EPS (₹) | 14.71 | 16.46 | 19.33 | -10.6% | -23.9% |
⚠️ The Margin Squeeze: Operating profit fell 8.3% YoY while revenue grew 3.4%. That’s compression. OPM dropped from 13% to 11% — a 200 basis point hammering. Forex headwinds, input cost inflation, and the fact that new models (Talegaon ramp-up) haven’t yet achieved the volumes to justify fixed costs — all playing out in real-time. The stock market hates this. For good reason. Annualised EPS based on Q1-Q3 average is ₹67.32, down from full-year FY25 EPS of ₹69.96. Earnings trajectory is flattening.
05 — Valuation: Fair Value Range
Is ₹2,094 a Bargain or a Trap?
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