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Hyundai Motor India Faces Mixed Broker Sentiment Amid Q4 Revenue Beat and Margin Pressures

While Hyundai reports strong Q4 FY25 revenue and EBITDA growth, brokerages are divided on near-term outlook due to margin concerns and cost pressures from upcoming facilities.

MSCI Index Rejig: Hyundai Motor Joins, This Adani Group Stock Faces Exit | Image: Shutterstock
JT Park, Executive Director (Sales, Marketing and Service) - Hyundai Motor India Limited (HMIL), Mr. Tarun Garg, Whole-time Director & Chief Operating Officer - HMIL, and Mr. Unsoo Kim, Managing Director - HMIL, at the launch of the Hyundai CRETA Electric at Bharat Mobility Global Expo 2025 in New Delhi. | Image: HMIL
Hyundai Motor shares: Nirmal Bang downgrades stock, other brokers increase target prices

Overview

  • Hyundai Motor India posted Q4 FY25 revenue of Rs 179.4 billion, with a 285 basis point improvement in EBITDA margins to 14.1%, but net profit declined 4% year-on-year to Rs 16.1 billion.
  • Brokerages are divided: Emkay Global retains an 'Add' rating with a target of Rs 1,750, citing margin pressures, while Nirmal Bang downgrades to 'Hold' after a 10% stock rally, setting a target of Rs 1,984.
  • Kotak, JM Financial, and Motilal Oswal maintain 'Buy' ratings, raising target prices to Rs 2,050–2,137, citing Hyundai's strong product pipeline, premiumization, and export growth potential.
  • Hyundai plans to launch 26 new models by FY30, including six EVs and hybrids, with Rs 7,000 crore capex allocated for FY26 to support a new Pune plant and product development.
  • Near-term challenges include muted domestic passenger vehicle demand, projected 1–2% volume growth for FY26, and cost pressures from pre-operational expenses and higher depreciation at the Talegaon facility.