Hyundai’s Stock Soars 5% Despite 22% YoY Decline in Q4 Net Profit to ₹1,256 Crore
The shares of Hyundai Motor India saw a notable increase of nearly 5% on Monday, driven by sustained ‘Buy’ ratings from key brokerages despite the company’s reported 22% decline in net profit for Q4 FY26. The automaker disclosed profits of Rs 1,256 crore for the January-March quarter, down from Rs 1,614 crore in the previous year, yet managed to achieve a revenue growth of over 5%, reaching Rs 18,916 crore. This combination of factors has instilled confidence among investors, as brokerages express optimism regarding the company’s future performance in the auto sector.
Brokerages such as Nomura and Motilal Oswal have reaffirmed their positive outlook on Hyundai Motor India. Nomura, while cutting its target price from Rs 2,698 to Rs 2,407 per share, highlighted a nearly 30% upside potential based on recent performance metrics. They expect Hyundai to show significant domestic growth driven by an extensive new model cycle, despite lower-than-anticipated EBITDA margins due to cost inflation. Similarly, Motilal Oswal maintains a target price of Rs 2,160 per share, citing a robust launch pipeline and anticipated higher earnings driven by a shift toward premium SUVs, even as they acknowledge near-term challenges posed by start-up costs and commodity inflation.
Hyundai’s stock performance reflects investor sentiment, with the price reaching Rs 1,944 post-earnings announcement, marking a 2% gain over the past week and 5% over the last month. However, it is important to note that the shares are down more than 18% year-to-date in 2026, indicating a need for cautious optimism. As the company moves towards its upcoming AGM and possible shareholder dividend approval, the market will be closely watching how Hyundai tackles the headwinds impacting its margins while executing its strategic plans for growth and expansion in the evolving automotive landscape.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)