Hyundai Motor India shares gain up to 4% after EV, SUV pipeline keeps Street positive

Shares of Hyundai Motor India

Ltd. gained as much as 4% on Monday, May 11, after brokerage firms referred to strong growth guidance and an improving product pipeline despite a mixed March quarter performance.

Brokerage firm Nomura maintained its 'Buy' rating on Hyundai Motor India with a target price of ₹2,407. The brokerage said the company delivered a mixed fourth quarter, with margins largely in-line with expectations, while realisations came in stronger than anticipated.

Nomura said that Hyundai underperformed the industry on volumes during the quarter, while EBITDA missed estimates. However, it expects the company to deliver above-industry growth of 8-10% in FY27, driven by two upcoming SUV launches and the beginning of a new model cycle.

The brokerage expects Hyundai Motor India to outperform the broader passenger vehicle market, forecasting a domestic volume CAGR of 13% between FY26 and FY28.

The optimism is driven by the company's planned rollout of 26 new launches through FY30. Nomura also said Hyundai's improved disclosures around its future product pipeline and robust export outlook are likely to be positively received by investors.

CLSA retained its 'Outperform' rating on Hyundai Motor India, while cutting its target price to ₹2,290.

The brokerage said that the company's Q4 FY26 EBITDA margin of 10.4% missed estimates by 70 basis points and declined 84 basis points sequentially.

CLSA said margins were impacted by a one-time vendor compensation payout, higher commodity costs, labour code-related expenses and an adverse product mix. However, these pressures were partly offset by lower discounts, operating leverage, price hikes and state incentives.

The brokerage added that Hyundai's guidance of 8-10% volume growth in FY27 will likely be supported by capacity ramp-up and the launch of two new vehicles, including a compact electric SUV and a mid-size SUV.

Despite ongoing commodity headwinds, the company remains confident of maintaining EBITDA margins within the 11-14% range in FY27.

Hyundai Motor India reported a 22% year-on-year decline in net profit for the March quarter to ₹1,256 crore, while revenue rose 5% to ₹18,916 crore. EBITDA fell 22% to ₹1,966 crore, while margins narrowed to 10.4% from 14.1% a year earlier.

Volumes increased 9% year-on-year, while realisations rose 6%, significantly ahead of expectations.

During the earnings call, management guided for domestic and export volume growth of 8-10% in FY27. The company also reiterated its margin guidance of 11-14%, despite commodity cost pressures.

Hyundai said it plans to launch a new locally manufactured compact electric SUV in FY27 from its Chennai facility.

The automaker has also planned capital expenditure of ₹7,500 crore for FY27, with a significant portion allocated towards new products and manufacturing investments.