The shares of Hyundai Motor India jumped nearly 5% on Monday as brokerages maintained their ‘Buy’ ratings on the stock even after the automaker reported a 22% drop in net profit to Rs 1,256 crore for Q4 FY26, compared with Rs 1,614 crore in the year-ago period.
The Creta-maker on Friday reported its results for the January–March quarter of FY26. While net profit declined, the automaker’s revenue from operations grew more than 5% to Rs 18,916 crore during the quarter under review, compared with Rs 17,940 crore in the year-ago period.
Along with its Q4 results, Hyundai Motor India announced that its board has recommended a dividend of Rs 21 per share for the financial year ended March 31, 2026. This, however, is subject to shareholders’ approval at the upcoming Annual General Meeting (AGM).
For the full financial year FY26, Hyundai Motor India reported a 2% YoY rise in revenue to Rs 70,763 crore, while net profit declined 4% YoY to Rs 5,543 crore from FY25.
Nomura on Hyundai Motor India
Nomura maintained its ‘Buy’ rating on the stock but cut its target price to Rs 2,407 per share from Rs 2,698 earlier. The revised target price implies an upside potential of nearly 30% from the stock’s previous closing price of Rs 1,852.80 on the NSE.
The international brokerage noted that the company’s revenue, average selling price and EBITDA margin of 10.4% were below its estimates. It lowered its EBITDA margin expectations to 11.6% for FY27 and 13% for FY28 to factor in steep cost inflation. Operating leverage, price hikes, an improved export mix and cost reductions should offset this impact over time, it said, adding that its EPS estimates for FY27–28F have been reduced by 13%.
“We maintain our view that HMI will outperform the market, with a domestic volume CAGR of 13% over FY26–28F driven by the start of a new model cycle (overall 26 new launches till FY30). HMI’s improved disclosures on the new model cycle and strong export guidance will be well received by the market, in our view. Margin guidance also alleviates market concerns about severe margin compression due to commodities,” Nomura said.
Motilal Oswal on Hyundai Motor India
Motilal Oswal Financial Services also maintained its ‘Buy’ rating on Hyundai Motor India, with a target price of Rs 2,160 per share. The domestic brokerage said the company’s profit beat its estimate, largely due to higher-than-expected other income. However, EBITDA margins missed expectations due to commodity inflation, plant start-up costs and an adverse product mix.
“Considering its launch pipeline, we expect HMIL to post a ~9% volume CAGR over FY26–28. This is likely to be boosted by a 12% volume CAGR in exports. We expect start-up costs for the new Pune plant to impact earnings in the near-to-medium term. Overall, HMIL is expected to deliver a ~14% earnings CAGR over FY25–28. We believe the company remains well-positioned to benefit from the premiumisation trend in India, given its mix is skewed toward SUVs,” Motilal Oswal said.
Hyundai share price
Hyundai shares jumped nearly 5% to trade at Rs 1,944 apiece on Monday. The stock has gained over 2% in the past week and 5% over the last month. However, the shares of the Creta-maker are still down more than 18% so far in 2026.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
