Hyundai Motor India Limited (HMIL) reported a 22.2% decline in consolidated net profit for the fourth quarter of the 2025-26 fiscal year, amounting to ₹1,255.63 crore. The decrease was primarily attributed to higher commodity costs and a shift in sales volume mix favoring lower-margin sedans and hatchbacks instead of high-margin sport utility vehicles (SUVs).

Tarun Garg, Managing Director and Chief Executive Officer of HMIL, explained that the company experienced growth across various vehicle segments following the goods and services tax (GST) rationalisation implemented in September 2025. This contrasted with previous periods when demand was predominantly concentrated on SUVs. As a result, faster growth in hatchback and sedan sales led to a margin decline, although it contributed positively to improved plant utilization and overall sales volume.

During the fourth quarter, HMIL's hatchback sales rose by 26.4% year-on-year, reaching 35,474 units, while sedan sales increased by 25.8% to 24,290 units. SUV sales remained largely unchanged at approximately 106,814 units. Garg indicated that the current volume mix trend was not expected to persist, with the company planning to introduce two new models in the 2026-27 fiscal year aimed at potentially boosting higher-margin vehicle sales.

In addition to the volume mix changes, the company cited elevated commodity prices as a significant factor weighing on profitability during the quarter. Despite challenges, the expanded sales in lower-margin segments helped sustain plant operations at higher utilization rates, balancing some of the profit pressure.