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Hyundai Motor India Ltd is targeting an EBITDA margin of 11-14% in FY27 by implementing calibrated price hikes, reducing discounts, increasing volumes, and improving utilisation at its Chennai plant, following a drop in profitability in Q4FY26. The company's consolidated EBITDA margin fell to 10.4% in the quarter ended March 2026, down from 14.1% in the same period the previous year, due to commodity inflation, capacity addition costs, and unfavourable product mix.
The company has already executed price increases of around 60 basis points in January and a selective hike for the Venue model in March, with another increase scheduled for May. Discounts were reduced to 1.9% of average selling price in Q4FY26 from 2.6% in the prior quarter. K S Hariharan, Head of Investor Relations, attributed a 120 basis point sequential margin impact to commodity inflation, with 50-60 basis points considered non-recurring.
Improved utilisation at the Chennai plant will support margin recovery, with two new models—an internal combustion engine SUV and a compact electric SUV—set for production there. The plant's utilisation had declined after Venue production shifted to Pune, which is now producing around 12,000 units monthly. Hyundai plans ₹7,500 crore in capital expenditure for FY27, with 45-50% allocated to new products and 30% to plant investments.
Hyundai aims for 8-10% growth in both domestic and export volumes in FY27, supported by new launches and expanded capacity. April domestic sales rose 17% year-on-year. Managing Director Tarun Garg said the company expects to outpace industry growth and gain market share.
The company will continue monitoring market conditions to balance volume and profitability, with further pricing actions based on demand and cost trends. Hyundai's next investor update is scheduled for July, ahead of its Q1FY27 earnings release.