Hyundai Motor India executives have reported significant developments affecting the company's operations, highlighting both challenges and positive impacts in different areas of their business.

Rising Commodity Costs Present Challenges

The company's executives have identified a notable surge in commodity prices across several key materials essential to automotive manufacturing. The price increases are particularly affecting precious metals, copper, and aluminium - all critical components in modern vehicle production.

These commodity price increases represent a significant operational consideration for the automotive manufacturer, as these materials are integral to various vehicle components and manufacturing processes.

Tax Cut Benefits Concentrated in Compact SUV Segment

In contrast to the commodity price challenges, Hyundai Motor India executives have reported positive developments regarding recent tax policy changes. The company has observed that the maximum impact of tax cuts has been felt specifically in the compact SUV segment.

This development suggests that policy measures have been particularly beneficial for this vehicle category, potentially improving market dynamics and consumer accessibility in the compact SUV space. The concentration of tax cut benefits in this segment indicates targeted policy effectiveness for specific vehicle categories.

Market Dynamics and Operational Impact

The dual nature of these developments - rising input costs alongside beneficial tax policy changes - reflects the complex operating environment facing automotive manufacturers. While commodity price surges present cost pressures, the positive impact of tax cuts in key vehicle segments provides some offsetting benefits to the company's market position.

Hyundai Motor India Limited has announced its unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025, demonstrating strong operational performance and sustained growth momentum. The Board of Directors approved these results at their meeting held on February 02, 2026, with the automotive manufacturer posting consolidated revenue of ₹179.74 billion for Q3FY26, marking growth from ₹166.48 billion recorded in Q3FY25.

Q3FY26 Financial Performance

The company's third quarter results showcase robust year-over-year growth across key financial metrics. Revenue for the quarter reached ₹179.74 billion, representing an 8.0% increase compared to the same period last year. The consolidated net profit stood at ₹12.34 billion for Q3FY26, up 6.3% from ₹11.61 billion in Q3FY25.

Nine-Month Performance Overview

For the nine-month period ending December 31, 2025, Hyundai Motor India demonstrated consistent performance with EBITDA reaching ₹66.33 billion, up 3.3% year-over-year from ₹64.21 billion. The EBITDA margins expanded to 12.8% for the nine-month period compared to 12.5% in the previous year, despite costs associated with capacity stabilization and commodity price pressures.

Market Performance and Strategic Highlights

The company benefited from GST 2.0 and festive tailwinds supporting domestic demand, with wholesale volumes up 5% quarter-over-quarter coupled with robust retail volumes. CRETA reclaimed its position as the No. 1 SUV sold in India, achieving highest-ever annual sales of 200,000+ units in CY2025. The New Venue garnered strong market response with nearly 80,000 bookings and encouraging first-time buyer contribution at 48%.

Hyundai Motor India continued its robust export momentum with volumes up 21% year-over-year in Q3FY26, contributing 25% to the overall sales mix. The company also made a strategic entry into commercial mobility through Prime HB and SD taxi offerings.

Investor Presentation and Regulatory Disclosure

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has released its investor presentation on the unaudited financial results. The presentation provides comprehensive insights into business highlights, sales performance across domestic and export segments, and detailed financial analysis.

Management Commentary

Commenting on the results, Mr. Tarun Garg, Managing Director & Chief Executive Officer, stated that the third quarter performance underscores the company's resilience and strong execution of "Quality of Growth" strategy, marked by healthy growth in volumes, revenue and profitability. He highlighted that on a year-to-date basis, EBITDA margins expanded to 12.8% against 12.5% last year, supported by efforts towards improving sales mix and prudent cost control measures.