New Delhi, July 30 (NVI) Carmaker Hyundai Motor India has reported a 35.1 per cent year-on-year decline in consolidated net profit to Rs 889 crore for the first quarter of current financial year 2026-27 which ended June 30.
The fall has been attributed to escalated raw material costs, supply chain disruptions and weaker exports which weighed on earnings despite resilient domestic demand.
The automaker said profitability was impacted by elevated steel and commodity prices, along with production disruptions following a fire at a supplier’s facility near Chennai.
While operations resumed by the end of June, exports declined 19.6 per cent, offsetting a 5.4 per cent increase in domestic vehicle sales. Total expenses rose 4.2 per cent to Rs 15,407 crore.
Hyundai said geopolitical tensions in the Middle East and persistent input cost inflation continued to pressure margins during the quarter.
The company implemented vehicle price hikes to mitigate rising costs, but these were insufficient to fully offset higher commodity prices and supply chain challenges.
The company indicated that domestic demand remained relatively resilient, supported by earlier tax measures and continued interest in its sport utility vehicle portfolio.
However, weaker overseas shipments and higher manufacturing costs weighed on overall financial performance, making the first quarter of FY27 a challenging period for the automaker. (NVI)
