Shares of Hyundai Motor India rose as much as 7 percent during Friday's trading session, emerging as the top gainer on the Nifty 100 after the company's June quarter FY27 earnings and optimistic management commentary boosted investor sentiment. The rally followed a modest gain in the previous session after the earnings announcement, with the stock reaching Rs 2,160 during intraday trade.

The company reported a 35 percent year-on-year decline in consolidated net profit for the June quarter, while revenue remained largely unchanged. Hyundai attributed the weaker earnings to temporary production disruptions and lower export volumes caused by the ongoing geopolitical tensions in West Asia. However, management indicated that production has normalised and expects business momentum to improve from the second quarter, supported by healthy domestic demand and an upcoming pipeline of new vehicle launches.

Brokerages maintained positive views on the stock despite the earnings decline. Nomura reiterated its Buy rating with a target price of Rs 2,498, stating that the company's EBITDA margin of 9.3 percent was broadly in line with expectations. The brokerage expects Hyundai to outperform the broader passenger vehicle industry in the second half of FY27, supported by two planned product launches and continued earnings growth.

CLSA also maintained its Outperform rating with a target price of Rs 2,300. The brokerage noted that cumulative price increases, lower discounting, and ongoing cost optimisation measures helped the company protect profitability despite higher commodity costs. It also highlighted management's guidance for 8 to 10 percent domestic volume growth in FY27, driven by capacity expansion and new model introductions.

Motilal Oswal Financial Services retained its Buy rating with a target price of Rs 2,334. The brokerage observed that net profit exceeded its expectations due to higher other income and lower depreciation expenses, although operating margins remained under pressure from commodity inflation and softer volumes. It expects Hyundai Motor India to deliver healthy volume and earnings growth over the coming years.

While the stock remains lower on a year-to-date basis, the positive market reaction reflects improving investor confidence in Hyundai Motor India's medium-term growth prospects, supported by product expansion, production normalisation, and sustained profitability initiatives.