Hyundai India Reports EBITDA Drop Of 17% In Q3 As Costs Rise

Hyundai Motor India saw EBITDA fall to Rs 20,183 crore in the third quarter of the financial year 2025-26, down from Rs 24,289 crore in the second quarter. The decline of Rs 4,106 crore marks a 17% quarter-on-quarter contraction, though the company maintained a year-on-year growth of 7.6% when compared with the same period last year.

The company's revenue for the quarter reached Rs 179,735 crore, showing an increase of 8% compared with Rs 166,480 crore in Q3 FY25. Net profit stood at Rs 12,344 crore, up 6.3% from Rs 11,607 crore in the corresponding period of the year before. The EBITDA margin for Q3 FY26 was 11.2%, down from 13.9% in Q2 FY26, indicating a compression in operating margins.

The reason for the EBITDA drop stems from two factors. First, Hyundai faced increased costs related to capacity stabilisation across its manufacturing facilities. Second, commodity price movements in the quarter impacted operating expenses. The company absorbed these headwinds whilst maintaining volume growth. Volumes grew 5% quarter-on-quarter, supported by GST 2.0 benefits and festive demand in India.

On a year-to-date basis, the nine-month EBITDA reached Rs 66,325 crore, up 3.3% from Rs 64,211 crore in the corresponding period last year. The EBITDA margin for the nine months stood at 12.8%, an expansion from 12.5% in the same period of FY25. This shows that despite the quarterly margin compression, the company managed margin expansion over the nine-month period through better sales mix and cost management in the first half of the year.

Export volumes continued to perform well, rising 21% year-on-year in Q3 FY26, making up 25% of the company's total sales. The Creta model reclaimed the position of the number one SUV in India, achieving annual sales of over 200,000 units in calendar year 2025. The new Venue model generated around 80,000 bookings, with 48% of buyers being first-time purchasers. The company also entered the commercial vehicle segment with Prime HB and SD taxi offerings.

Managing Director and Chief Executive Officer Tarun Garg stated that the quarterly performance shows the company's ability to execute its quality of growth strategy. He said the year-to-date margin expansion to 12.8% reflects the company's efforts in improving sales mix and managing costs. He also noted that January 2026 sales figures provided momentum for the year ahead.