Hyundai Projects Higher Margins and Growth with New SUVs and EVs in FY27

Hyundai Motor India Limited (HMIL) has projected EBITDA margins of 11-14% for FY27, signaling expectations of improved profitability. The company also forecasts 8-10% growth in both domestic sales and exports for the same period. These projections were shared in Hyundai's investor presentation following its Q4 FY26 earnings announcement.

Key Highlights

• Hyundai projects EBITDA margins of 11-14 percent for FY27
• Company expects 8-10 percent growth in domestic sales and exports
• SUVs made up 68 percent of Hyundai's domestic sales in FY26
• Rural market penetration reached 25 percent in Q4 FY26
• Hyundai to launch new internal combustion and electric SUVs in FY27

FY26 Performance and Market Trends

In FY26, Hyundai reported total sales of 775,031 units, marking a 1.7% increase year-on-year. Export volumes grew significantly by 16.4% to 190,125 units. However, domestic sales declined by 2.3% to 584,906 units. The company attributed the recovery in demand during the second half of the fiscal year to GST reductions in select vehicle categories.

Hyundai's revenue for FY26 rose by 2.3% to ₹70,763 crore. Despite this, the EBITDA margin narrowed to 12.2% from 12.9% a year earlier, mainly due to commodity inflation and costs related to capacity stabilisation. In Q4 FY26, revenue increased to ₹18,916 crore, supported by GST-driven demand, product updates, and export growth. However, the EBITDA margin continued to narrow in the quarter.

Strategic Plans for FY27

Hyundai plans a strong product push in FY27 as competition grows in the SUV and electric vehicle segments. The company will launch two new models: a new internal combustion engine SUV and an electric SUV. These launches aim to strengthen Hyundai’s position in the utility vehicle segment, which is driving growth in the passenger vehicle market.

SUVs accounted for 68% of Hyundai’s domestic sales mix in FY26. Key models include the Hyundai Creta, Hyundai Venue, and Hyundai Exter. The Creta remained one of the company’s top-selling products during the year.

Focus on Rural and Alternative Fuel Markets

Hyundai reported increased traction in rural markets and alternative fuel vehicles. Rural market penetration reached a record 25% in Q4 FY26. The contribution from CNG vehicles also rose to 18% of the sales mix.

The company is scaling its production capacity to 1.14 million units. Hyundai is also refining its strategy for SUVs and electric vehicles to address changing market demands and industry trends.