Target: ₹1,960
CMP: ₹1,907.10
Hyundai Motor India’s Q4FY26 financial performance fell short of estimates, with Revenue, EBITDA, and PAT missing projections by 2.5 percent, 18.9 percent, and 16.8 percent, respectively. The company’s revenue grew 5.4 percent year-on-year, primarily driven by volume growth; however, it underperformed expectations due to a decrease in average selling prices (ASPs), resulting from a higher proportion of lower-priced models like the Aura and i10. EBITDA experienced a significant decline of 22.4 percent, while PAT dropped by 22.2 percent.
A notable highlight of the quarter was the management’s optimistic volume outlook for FY27E, predicting domestic volume growth in the range of 8 to 10 percent, which suggests potential market share gains. This growth is expected to be bolstered by the ramp-up of the new Venue model and the introduction of two new SUVs: a localized compact EV SUV and an ICE mid-SUV exceeding four meters in length.
Nevertheless, disruptions in West Asia pose a near-term risk, making export recovery and market diversification crucial areas to monitor. Margins are anticipated to remain under pressure in the short term due to high commodity prices, costs associated with the Pune ramp-up, and expenses related to upcoming launches. HMIL implemented a price hike of approximately 60 basis points in January, followed by a selective increase for the Venue in March, with another price adjustment anticipated in May.
Despite the challenges, we believe HMIL is poised to enter FY27E with greater growth visibility compared to FY26, backed by available capacity, a robust SUV pipeline, and resilience in exports. Based on the projected FY28E EPS of ₹85.3, we assign a P/E multiple of 23x to value HMIL, arriving at a target price of ₹1,960 per share. Our rating on the stock remains a Hold.
Published on May 11, 2026
