Hyundai Motors Q4FY25: A Quarter of Quiet Confidence

Some quarters are all about big headlines. Others, like this one for Hyundai Motors, are about quiet confidence—solid delivery, calm navigation through headwinds, and a clear focus on where the journey leads next.

Q4FY25 may not come with dramatic swings, but it carries a tone of steady, deliberate progress. Hyundai has outperformed expectations in key areas, held its ground where it needed to, and laid the groundwork for a transition toward new segments and markets.

What Stood Out This Quarter

At a glance, it feels like a calm stretch on the road—nothing sharp or sudden, just steady driving in the right direction.

The takeaway? A well-managed quarter, with healthy revenue growth and a strong jump in operating margins—even as profits softened a bit year-on-year.

Where Hyundai Quietly Outperformed

Let’s cruise through the highlights:

• Revenue rose 2% YoY to ₹17,940 crore.
• EBITDA margin came in at 14.1%, a significant quarter-on-quarter improvement of 280 basis points.
• Net profit (PAT) stood at ₹1,614 crore—lower than last year but 13% ahead of expectations.

Overall, the numbers suggest Hyundai stayed in control—managing its mix, keeping costs in check, and keeping the ride smooth despite a few bumps.

Challenges on the Radar

However, it’s not all smooth driving.

• Market share declined by 100 basis points year-on-year to 13.1% in Q4FY25.
• The outlook for wholesale volumes remains cautious, with a few hurdles:

o Consumer sentiment is still on the weaker side. o Entry-level demand continues to be soft. o And a higher base from last year makes growth less visible in the short term.

Hyundai knows this. The results reflect not just performance, but awareness—and readiness to shift gears where needed.

Looking Ahead: A Thoughtful Realignment

If Q4 was about resilience, the upcoming years are about direction. Hyundai is already setting its sights on where demand is building—not just where it’s been.

“From CY26E, we expect it to gain market share, given launches in MPV/SUV segments.”

“Export segment demand will recover in a gradual manner.”

“We expect EPS (earnings per share) to grow by 3.1% in FY26E and by 22.8% in FY27E.”

—Kotak Research Team

In simple terms, the company is pivoting toward larger, more versatile vehicles like SUVs and MPVs, and gently rebuilding its export presence. Both moves suggest a shift toward sustainability in scale, not just speed.

The Valuation View

The updated fair value now stands at ₹2,050, based on long-term cash flow expectations. With the current market price at ₹1,856, the view remains constructive.

It’s a reflection of the fundamentals, the new product strategy, and what the next two years might look like from a margin and earnings perspective.

Wrapping It Up: Calm, Capable, and Ready

This wasn’t a loud quarter. But sometimes, strength lies in subtlety. Hyundai Motors didn’t chase headlines—it delivered on expectations, held its footing in a shifting market, and quietly repositioned itself for what comes next.

With new launches planned and exports expected to improve gradually, the company appears focused on long-term alignment rather than short-term reaction.

For those following the auto space, Hyundai’s Q4FY25 is a reminder: sometimes, a steady wheel and a clear route are all you need to keep moving forward.