The Creta-maker posted a 14% year-on-year (YoY) rise in consolidated net profit at Rs 1,572 crore, up from Rs 1,375 crore in the same period last year. The company’s revenue from operations came in at Rs 17,461 crore, a marginal 1.2% increase from Rs 17,260 crore in the year-ago quarter.
EBITDA margin improved by 113 basis points YoY to 14%, supported by a favourable product and export mix along with continued cost-optimisation initiatives. Hyundai Motor said it delivered a strong performance in Q2FY26, driven by festive demand, policy tailwinds, and solid traction across SUV and rural segments.
Should you buy, sell, or hold Hyundai stock?
Morgan Stanley | Overweight | Target price: Rs 3,066 (up from Rs 2,842)
Morgan Stanley maintained its Overweight rating on Hyundai Motor India, raising the target price to Rs 3,066, implying an upside potential of about 27% from current levels. The brokerage said Q2FY26 results were broadly in line with expectations but cautioned about potential margin pressure in the second half due to the ramp-up of new facilities and higher depreciation. It expects margins to recover from FY27 as volumes rise.
Volume and EBITDA margin estimates have been trimmed by 1–3% and 30–40 basis points, respectively, while EPS forecasts for FY27–28 were lowered by 6–9%. Despite near-term headwinds, the brokerage remains positive, citing medium-term recovery prospects.
Citi | Buy | Target price: Rs 2,900 (up from Rs 2,850)
Citi also maintained its Buy rating on Hyundai, slightly raising the target price to Rs 2,900. The brokerage highlighted robust festive-season retail sales aided by GST cuts, with compact SUVs such as Exter and Venue continuing to outperform, particularly in rural markets. Exports are expected to surpass the company’s 7–8% growth guidance. However, near-term cost pressures could emerge from the Pune plant start-up, which may add 20–25% in overheads.
Citi trimmed its FY26–28 EBIT and PAT estimates by 1–2% and prefers Maruti Suzuki and M&M over Hyundai in the auto space.
Goldman Sachs | Buy | Target price: Rs 2,970
Goldman Sachs maintained a Buy call with a price target of Rs 2,970, stating that Q2 results were in line with expectations even as revenue declined 1% YoY. Festive retail sales surged 23% YoY, driven by strong demand for compact SUVs like Exter and Venue, which saw a 28% jump. Exports rose 17% in H1FY26 and are on track to beat the company’s 7–8% annual growth target. The brokerage also noted the upcoming launch of the new Venue on November 4 and made only minor EPS adjustments in the range of -2% to +2%.
Management commentary
“We delivered a strong financial performance for the quarter across key metrics, with evident growth in revenue and profitability. The strong EBITDA margin of nearly 14% is a further testament to our ‘Quality of Growth’ strategy, complemented by robust exports and consistent cost-optimisation efforts,” said Unsoo Kim, Managing Director of Hyundai Motor India.
“We aim to keep pace with the industry’s growth momentum for the rest of the year, while our export performance is set to surpass targets for FY26,” he added.
The earnings were announced during market hours, and the stock ended at Rs 2,421, up nearly 3% on the NSE. Hyundai Motor India shares have gained around 42% over the past six months..
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)