Hyundai Motor India Shares Rise 5% Despite 22% Drop in Q4 Profit
Hyundai shares jump 5% despite 22% YoY fall in Q4 net profit to Rs 1,256 crore
The Economic TimesImage: The Economic Times
Hyundai Motor India shares surged nearly 5% following brokerages' 'Buy' ratings, despite a 22% year-on-year decline in Q4 net profit to ₹1,256 crore. The automaker's revenue rose over 5% to ₹18,916 crore amid ongoing cost challenges, with a proposed dividend of ₹21 per share pending shareholder approval.
- 01Hyundai's Q4 net profit fell 22% year-on-year to ₹1,256 crore.
- 02Revenue from operations increased by more than 5% to ₹18,916 crore.
- 03Brokerages maintain 'Buy' ratings, with Nomura adjusting the target price to ₹2,407.
- 04Hyundai plans to launch 26 new models by FY30, aiming for a 13% domestic volume CAGR.
- 05The company proposed a dividend of ₹21 per share, pending approval at the AGM.
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Hyundai Motor India reported a 22% year-on-year decline in net profit for Q4 FY26, amounting to ₹1,256 crore, down from ₹1,614 crore in the same quarter last year. Despite this drop, shares rose nearly 5% as brokerages maintained their 'Buy' ratings. Revenue grew over 5% to ₹18,916 crore, indicating strong operational performance amidst challenges such as commodity inflation and plant start-up costs. The company announced a proposed dividend of ₹21 per share, which is subject to shareholder approval at the upcoming Annual General Meeting (AGM). For the full fiscal year FY26, revenue increased by 2% to ₹70,763 crore, while net profit fell 4% to ₹5,543 crore. Analysts from Nomura and Motilal Oswal expressed optimism regarding Hyundai's future, citing a robust launch pipeline and expected volume growth, particularly in the SUV segment. Nomura revised its target price to ₹2,407 per share, while Motilal Oswal set a target of ₹2,160 per share.
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Hyundai's performance and future plans could influence consumer confidence and spending in the automotive sector, especially as the company aims to capitalize on the growing demand for SUVs.
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