Hyundai India Q3 Results: Net Profit Up 6% to ₹1,234 Crore, Flags Scrappage Policy Cost Risk
Gurugram, February 3, 2026 – Hyundai Motor India Limited (HMIL), the country's second-largest car manufacturer, reported a 6.3% year-on-year increase in consolidated net profit to ₹1,234.4 crore for the third quarter ending December 31, 2025. The company’s revenue from operations grew to ₹17,973.5 crore, up from ₹16,648 crore in the same period last fiscal.
Despite the positive earnings, the company’s quarterly financial statement highlighted a significant regulatory cloud on the horizon: the financial impact of India's newly implemented End-of-Life Vehicle (ELV) Scrappage Policy remains unquantified and unprovided for, potentially representing a major future liability.
Key Financial Highlights (Consolidated, Q3 FY26 vs Q3 FY25)
Revenue from Operations: ₹17,973.5 Crore | Year-on-Year Growth: +8.0%
(Previous Year Same Quarter: ₹16,648.0 Crore)
Net Profit: ₹1,234.4 Crore | Year-on-Year Growth: +6.3%
(Previous Year Same Quarter: ₹1,160.7 Crore)
Earnings Per Share (EPS): ₹15.19 | Year-on-Year Growth: +6.3%
The Growth Engine: Talegaon Plant Goes Live
A major operational milestone underpinning Hyundai’s expansion plans was achieved last quarter. The company successfully commenced production at its newly acquired manufacturing facility in Talegaon, Maharashtra, effective October 1, 2025. The plant has an annual installed capacity of 170,000 units, which will be crucial in meeting domestic demand and possibly supporting export goals.
The Looming Challenge: The "Unprovided" Scrappage Liability
Buried in the notes to the financial accounts is a critical disclosure about the Environment Protection (End-of-Life Vehicles) Rules, 2025. The rules, effective April 1, 2025, mandate automakers to ensure the scientific recycling of old vehicles.
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The Obligation: Hyundai has calculated it is responsible for recycling a share of vehicles sold in the domestic market (including those used by the company itself) dating back to April 1, 2005.
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The Uncertainty: The obligation must be met by purchasing Extended Producer Responsibility (EPR) certificates. However, the government has not yet notified the pricing mechanism or operationalized the certificate trading portal.
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The Accounting Impact: Due to this lack of clarity, Hyundai states there is "insufficient data to reliably estimate the financial impact." Consequently, no provision or expense has been recognized in the current financial statements. This means a future cash outflow is pending, but its size is currently unknown.
Other Regulatory Note: Labour Codes
The company also addressed the newly notified four Labour Codes. Hyundai stated it has been proactively aligning its policies and has already recognized associated costs in its current expenses. It does not expect a "material" additional impact from the final rules.
Auditor Clean Chit and Management View
The unaudited results received a clean "limited review" report from statutory auditors B S R & Co. LLP. The board of directors, led by MD & CEO Tarun Garg, approved the results on February 2, 2026.
What This Means for Stakeholders
Hyundai's Q3 results paint a picture of a company executing its growth strategy with a new plant while navigating a evolving regulatory landscape. For investors, the steady profitability is positive, but the unquantified scrappage policy liability is a key risk factor to monitor in upcoming quarters. The finalization of EPR certificate rules by the government will directly impact the cost structure of Hyundai and the entire automotive industry in India.