Hyundai Motor India lost 13,900 vehicles in June due to the fire incident at its Chennai plant, which it hopes to recover within Q2 FY27
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Impacted by a fire incident near its facility in Chennai and the West Asia crisis, Hyundai Motor India (HMIL), on Thursday, reported decline in its net profit as well as revenue from operations, respectively, during the first quarter of the financial year 2026-27 (Q1 FY27).Net profit for the quarter declined 35.1 per cent year-on-year to ₹886.6 crore compared with ₹1,369.2 crore in the corresponding period last fiscal year.Revenue from operations declined 0.5 per cent to ₹16,334.6 crore in Q1 FY27 (₹16,413 crore).Multiple headwindsSpeaking to mediapersons at an earnings call, Tarun Garg, Managing Director and Chief Executive Officer, HMIL, said that numbers will improve in the current quarter with production coming back to normalcy after losing 13,900 vehicles in June due to the fire incident.“We lost 13,900 vehicles as we had informed all of you in June and I think most of it has already been recovered in July; of course, July results are still couple of days away...but yes, most of it has been recovered. And of course, within Q2, 100 per cent of it will be recovered, coupled with healthy demand environment and upcoming product pipeline. Recovery is likely to gain pace from Q2 across both domestic and export businesses,” he said.He said Q1 FY27 was a challenging quarter with multiple headwinds impacting volumes and profitability.“Looking ahead, we remain committed to achieving our stated guidance of 8-10 per cent volume growth for both domestic and exports as well as 11-14 per cent EBITDA margin in FY27,” he added.During the quarter, HMIL sold a total of 1,78,082 units in Q1 FY27 (1,80,399 units), down 1.3 per cent. In the domestic market, however, the company reported growth of 5.4 per cent to 1,39,374 units (1,32,259 units).Exports were down 19.6 per cent at 38,708 units (48,140 units).“The US-Iran conflict, which started towards the end of the last fiscal, continued to impact our West Asia exports during Q1 of FY27. Further, export volumes were also affected by the temporary production disruption in June,” Garg said.Capex plansWhen asked about capex for the ongoing fiscal, the company said it will be about ₹7,500 crore, out of which 45-50 per cent would go in for products, especially for the upcoming two new models; another 30 per cent on plant-related activities, including phase two capacity expansion for Pune and upgradation of the Chennai plant.Garg said network is being expanded across India with six out of 10 outlets being given in the rural areas, and two new products also coming — one in high-volume segments, the mid SUV in festive season — as well as the new electric vehicle within this fiscal year that would drive the company’s volumes.Published on July 30, 2026
