Hyundai Motor India reported a smaller-than-expected 3.8 percent fall in fourth-quarter profit on Friday, as income from its export operations partly made up for weak domestic demand for some of its cars.
The company, which makes the ‘Creta’ sports utility vehicle (SUV) and the ‘Verna’ sedan, said profit fell to 16.14 billion rupees ($189 million) for the January-March period from 16.77 billion rupees a year before.
Analysts, on average, expected Hyundai India’s profit to decline to 13.17 billion rupees, according to data compiled by LSEG.
Domestic sales and exports
Domestic sales fell 4 percent as weak demand for its small cars such as the ‘Grand i10 nios’ and SUVs like the ‘Venue’ dragged the company’s profit lower for a third-consecutive quarter. However, exports grew 14% in the reporting quarter, helping cap the drop in overall sales figures at 1 percent.
Exports account for a fifth of Hyundai India’s volumes. The robust export growth boosted total revenue 1.5 percent higher to 179.4 billion rupees, beating analysts’ expectation of 172.97 billion rupees.
Analysts also noted that price hikes made at the beginning of the quarter helped. Growth in domestic volumes and earnings is expected to return in the latter half of fiscal 2026, according to analysts, when Hyundai India’s third plant in western Maharashtra state begins operations.
The company’s stock, which was trading lower before the results, rose nearly 2 percent to hit an intraday high after the results.