At a Glance
Hyundai Motor India (HMI) rolled out its Q1 FY26 results like a turbocharged SUV – and the market… well, it just yawned with a -0.76% drop. Why? Despite delivering ₹164.1B revenue (flat QoQ), ₹13.7B PAT, and EBITDA margin at 13.3%, investors expected more fireworks. Exports grew 13% YoY, but domestic sales slowed. With a market cap of ₹1.69L Cr, P/E of 31.5, and ROCE of a jaw-dropping 54.2%, Hyundai remains a beast. Promoters own a massive 82.5% – they’re not letting this ride go.
Introduction
Remember when Hyundai was the cute Santro-selling brand? Well, that kid grew up, got a six-pack, and is now flexing with SUVs, EVs, and record profits. Hyundai Motor India, a wholly-owned subsidiary of the global auto giant, has carved out a throne as India’s second-largest carmaker.
But Q1 FY26 was a mixed bag. Revenue declined slightly from ₹17,562 Cr in Q4 FY25 to ₹16,025 Cr, PAT also slipped to ₹1,336 Cr (vs ₹1,583 Cr prior). Yet, operational efficiency stayed strong with OPM at 13%. The company’s profitability ratios are so good they make competitors jealous – ROE at 42.2% is basically screaming, “We print money.”
However, lurking behind the shiny numbers is a slowdown in domestic sales and aggressive competition from Maruti, Tata, and new EV disruptors.
Business Model (WTF Do They Even Do?)
Hyundai Motor India makes and sells passenger cars, SUVs, and EVs. They have 13 models catering to every budget, from hatchbacks (i10) to EVs (Ioniq 5). Revenue streams:
- Domestic Sales: SUVs like Creta and Venue are cash cows.
- Exports: HMI is India’s No.2 exporter – shipping to 100+ countries.
- EVs: Small base, but growing like an unmonitored teenager.
- New Engine Plant: Kicked off production this quarter, promising better margins and localization.
In essence, they sell cars people actually want to buy – and they do it profitably.
Financials Overview
- Q1 FY26 Revenue: ₹16,025 Cr (↓5.6% QoQ)
- EBITDA: ₹2,135 Cr (13.3% margin)
- PAT: ₹1,336 Cr (EPS ₹16.44)
- FY25 Revenue: ₹67,654 Cr | PAT: ₹5,492 Cr
- ROE: 42.2% | ROCE: 54.2%
Commentary: Even with sales dip, Hyundai’s margins show it’s not just surviving but thriving. Cost control and premium SUVs kept profitability intact.
Valuation
- P/E Method
- EPS (TTM): ₹66.2
- Industry P/E: ~30
- Fair Price = ₹66.2 × 30 = ₹1,986
- EV/EBITDA
- EV ≈ ₹1.69L Cr + minimal debt ≈ ₹1.7L Cr
- EBITDA (TTM): ₹8,587 Cr
- EV/EBITDA = 19.8x (premium valuation)
- Fair Value ~ ₹2,000–2,150
- DCF (Conservative)
- Assume 8% growth, 12% discount rate → value ₹1,950–2,100
🎯 Fair Value Range: ₹1,950 – ₹2,150
At ₹2,085, it’s priced to perfection – no free lunch here.
What’s Cooking – News, Triggers, Drama
- New Engine Plant: Boosts local sourcing, cuts costs.
- EV Push: Ioniq, Kona updates coming; government incentives may help.
- Export Surge: +13% YoY – a lifeline as domestic demand cools.
- Risk: Price war with Tata, Maruti, and looming Chinese EVs.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 29,372 |
| Liabilities | 13,604 |
| Net Worth | 15,768 |
| Borrowings | 847 |
Remarks: Virtually debt-free, reserves strong, and assets healthy. A dream balance sheet.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating | 6,476 | 9,113 | 4,251 |
| Investing | -1,370 | -9,814 | -326 |
| Financing | -1,578 | -15,929 | -62 |
Remarks: FY24 had massive capex outflow; FY25 saw recovery. Operating cash flows solid.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 42.2% |
| ROCE | 54.2% |
| P/E | 31.5x |
| PAT Margin | 8.1% |
| D/E | 0.05 |
Remarks: Ratios so sexy, even Maruti blushed.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 59,761 | 68,539 | 67,654 |
| EBITDA | 7,454 | 8,969 | 8,748 |
| PAT | 4,654 | 5,954 | 5,492 |
Remarks: Slight revenue dip in FY25, but margins stayed strong.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| M&M | 1,59,211 | 12,929 | 30.9 |
| Maruti Suzuki | 1,52,913 | 14,500 | 27.4 |
| Tata Motors | 4,39,695 | 28,226 | 8.6 |
| Hyundai Motor | 66,705 | 5,380 | 31.5 |
Remarks: Hyundai trades at a premium despite being smaller. Why? High ROE and fat margins.
Miscellaneous – Shareholding, Promoters
- Promoters: 82.5% (they’re not selling this cash cow)
- FIIs: 7.08%
- DIIs: 7.75%
- Public: 2.66%
Sarcastic Take: Public float so low, it’s like trying to buy gold in a shortage.
EduInvesting Verdict™
Hyundai Motor India’s Q1 FY26 shows resilience: exports saved the day while domestic sales cooled. Margins remain strong, debt is negligible, and ROE makes fund managers drool. The stock, however, is priced for perfection – any slowdown could trigger a correction.
SWOT Quickie:
- Strengths: Strong brand, export edge, high ROE.
- Weaknesses: Low public float, pricey stock.
- Opportunities: EV ramp-up, new plants, global tie-ins.
- Threats: Domestic slowdown, competitive pricing pressure.
Final Word: Hyundai is still in the fast lane, but at ₹2,085, there’s little room for mistakes. Watch the domestic sales – if they rev up, so will the stock.
Written by EduInvesting Team | 30 July 2025
SEO Tags: Hyundai Motor India, Auto Stocks, EV Growth, Q1 FY26 Results
