Conference Call Analysis

        ## Executive Summary
        ===SUMMARY_START===

The Hyundai Motor India Limited Q1 FY26 earnings call highlighted a mixed performance. Domestic sales were down due to persistent macro challenges, but exports showed strong growth. The company maintained a resilient EBITDA margin of 13.3% through a focus on 'Quality of Sales', enhanced exports, and cost control. Hyundai Creta continued its market leadership in the mid-size SUV segment. CNG adoption reached a record high, while EV contribution remained modest. The company is expanding its rural presence and has commenced engine production at its Pune plant. Management expects a gradual recovery in domestic demand, driven by good monsoon, the festive season, and government measures. They also announced an Investor Day to unveil near-to-mid term plans, including 26 new product launches by FY30. The call also covered material cost reduction initiatives, localization efforts, and strategies for premiumization and meeting CAFE norms. ===SUMMARY_END===

===MARKDOWN_START===

Hyundai Motor India Limited - Q1 FY26 Earnings Call Analysis

        ## Detailed Analysis
        **Date:** July 30, 2025

Fiscal Period: Q1 FY26

This report analyzes the Q1 FY26 earnings conference call of Hyundai Motor India Limited (HMIL), focusing on key performance indicators (KPIs) and strategic initiatives.

1. Operational Highlights:

• Vehicle Sales Volumes (Wholesale & Retail):
  • Total Sales: 180,399 vehicles (Q1 FY26) vs. 192,055 vehicles (Q1 FY25) - Decline
  • Domestic Sales: 132,259 vehicles (Q1 FY26) vs. 149,455 vehicles (Q1 FY25) - Decline
  • Export Sales: 48,140 vehicles (Q1 FY26) vs. 42,600 vehicles (Q1 FY25) - Growth of 13% YoY
  • SUV Contribution: 68% of total sales. Creta remains the highest-selling SUV.
  • Hatchback: Witnessed decline in line with industry trend.
  • Sedan: Volumes remained flattish YoY.
  • i10: Scaled over 3 million unit sales cumulatively in India and export markets.
• Production Volumes and Capacity Utilization:
  • Engine production commenced at the new Talegaon (Pune) plant. Vehicle production is on track to start in Q3 FY26.
  • Capacity utilization at the Talegaon plant will be initially low, with plans to accelerate both export and domestic production.
• Market Share:
  • Creta: Maintained its No.1 position in the mid-size SUV segment since its launch in 2015. The segment is often referred to as the "CRETA segment".
• Channel Inventory Levels (in days):
  • Not explicitly mentioned in the transcript.

2. Financial Performance:

• Revenue: ₹164,129 Million (Q1 FY26) vs. ₹173,442 Million (Q1 FY25) - Decline
• EBITDA: ₹21,852 Million (Q1 FY26) vs. ₹23,403 Million (Q1 FY25) - Decline
• PAT: ₹13,692 Million (Q1 FY26) vs. ₹14,897 Million (Q1 FY25) - Decline
• EBITDA Margin: 13.3% (Q1 FY26) vs. 13.5% (Q1 FY25) - Slight Decline, but resilient
• EBIT Margin: 10.1% (Q1 FY26) vs. 10.4% (Q1 FY25) - Decline
• PAT Margin: 8.2% (Q1 FY26) vs. 8.5% (Q1 FY25) - Decline
• Average Realization per Vehicle:
  • ASP (Domestic): Increased to ₹7.65 lakhs (Q1 FY26) from ₹7.60 lakhs (Q1 FY25).
  • ASP (Export): Some decline YoY due to increased discounts to meet fleet orders.
• EBITDA per Vehicle:
  • Not explicitly mentioned, but can be derived by dividing EBITDA by total sales volume.

3. Strategic & Segment Analysis:

• EV vs. ICE Mix:
  • EV Contribution: 1.4% of total sales during the quarter.
  • Commentary: CRETA Electric received a reasonably good response.
• Domestic vs. Export Mix:
  • Exports: Grew by 13% YoY, contributing 27% to the overall sales mix.
  • Key Export Markets: Africa (28% growth), Mexico (14% growth). Strong demand in Middle East for Verna and Aura.
• Raw Material Impact:
  • Commodity costs were relatively stable during the quarter.
  • Material cost reduction achieved through increased localization (from 78% in FY24 to 82% currently) and value engineering activities.
  • Localization of battery assembly pack for EVs is underway.

4. Guidance, Outlook & Targets:

• Management Commentary:
  • Expects a gradual recovery in domestic demand due to good monsoon, festive season, and government measures (interest rate cuts, income tax relief, upcoming pay commission).
  • Confident in maintaining positive momentum in export operations.
  • Focus on expanding rural presence.
  • Will unveil near-to-mid term plans at the Investor Day on October 15, 2025.

Metric	Target Value	Timeframe
26 New Product Launches	By FY30	Near-to-mid term
Increased Localization	From 78% in FY24 to 82% currently	Current
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