Hyundai Motor shares jump 6% even as Q2 net profit declines 24% YoY. Why Nomura, other brokerages remain bullish?

Shares of Hyundai Motor India jumped nearly 6% on Thursday even after the Creta-maker reported a 24% year-on-year decline in consolidated net profit to Rs 1,196 crore for the July-September quarter of FY27, as rising raw material prices weighed on earnings, although brokerages maintained their ‘Buy’ calls for the stock.

Hyundai Motor India shares jumped to Rs 1,973.80 apiece on NSE on Thursday morning following the Q2 earnings announcement. The company’s revenue from operations increased more than 18.5% YoY to Rs 20,696 crore, up from Rs 17,461 crore reported in the corresponding quarter of the previous financial year.

The automaker’s total expenses rose more than 24% YoY to Rs 19,302 crore during the quarter under review, with a sharp 29% jump in cost of materials to Rs 15,731 crore. EBITDA fell nearly 19% YoY to Rs 1,975 crore, while EBITDA margin reduced to 9.5% in Q2 FY27 from 13.9% in Q2 FY26.

Also read | Hyundai Motor India’s Q2 profit falls 24% as commodity costs blunt tax-cut boost to demand

Nomura on Hyundai Motor share price

Nomura maintained its ‘Buy’ rating on Hyundai Motor India shares but reduced its target price to Rs 2,442 apiece from Rs 2,498 apiece. The latest target price implies nearly 31% upside potential from the previous close.

The international brokerage said the company’s new model cycle could drive potential market share gain in the second half of the ongoing FY27 and FY28. “We estimate domestic volume growth of 11/%/13%/9% over FY27F/28F/29F and maintain export volume growth of 5% for FY27F due to the Middle East conflict. We believe exports can recover strongly in FY28F (+20% y-y), with more models and new markets. Strong growth should also drive margin expansion. A key catalyst will be the launch of a mass-market EV, which could surprise positively,” it added.

Nomura believes that Hyundai Motor India has strong levers for margin expansion in the second half of FY27 and beyond.

Motilal Oswal on Hyundai Motor share price

Motilal Oswal Financial Services maintained its ‘Buy’ rating on the shares of Hyundai Motor India with a target price of Rs 2,300 apiece, implying 23% upside potential. The domestic brokerage said the company’s Q2 profit came in line despite commodity inflation adversely impacting margins. The result was aided by higher volumes, favourable currency, price hikes, and cost-saving measures.

Considering the strong bookings for Bayon, another product launch in Q4, the ramp-up of the third shift operations beginning at the Pune plant, other product launches in FY28, and a strong export order book, Motilal Oswal expects Hyundai Motor to post 9% volume CAGR over FY26-28. This growth is likely to be boosted by a 12% volume CAGR in exports.

“Overall, HMIL is projected to deliver a ~16% earnings CAGR over FY26-28. We believe the company remains well-positioned to benefit from the premiumization trend in India, given its mix is skewed toward SUVs,” it said.

Also read | Hyundai Motor India Q2 Results: Standalone profit falls 24% YoY to Rs 1,189 crore, but revenue rises 18%

Hyundai Motor share price

Hyundai Motor India shares have gained around 3% in a week but declined over 7% in a month. The stock is down 15% in 2026 so far.

In the longer term, the automaker’s shares have fallen more than 17% in one year.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.