Is Hyundai a Debt-Free Company? A Look at FY24 and FY25 Numbers

Hyundai Motor Company is a major player in the automotive industry with a market presence both domestically and internationally. However, one important question for investors and stakeholders is whether Hyundai Motor India operates as a debt-free company. Examining Hyundai’s latest standalone and consolidated financial liabilities provides valuable insights into its debt position.

Understanding Hyundai’s Debt Position

A company is considered “debt-free” if it does not have borrowings or financial liabilities that need repayment. Debt can include loans, bonds, or other financial obligations. It is crucial to analsze both non-current and current liabilities to get a clear picture of Hyundai’s financial leverage.

Standalone Liabilities Overview

In the latest financial year, FY25, Hyundai’s standalone liabilities reveal that the company is not debt-free. The standalone non-current liabilities amounted to ₹25,027.13 million, showing a slight decrease from ₹26,552.25 million in the previous year. These non-current liabilities include borrowings of ₹5,359.88 million, lease liabilities of ₹454.14 million, provisions of ₹8,438.03 million, and other non-current liabilities totalling ₹10,775.08 million.

Current liabilities, which represent obligations due within a year, stood at ₹1,11,020.29 million. This is a significant figure, although it decreased from ₹127,136.47 million in the previous fiscal year. Borrowings make up ₹2,558.37 million of current liabilities, alongside lease liabilities, trade payables, other financial liabilities, provisions, and tax liabilities.

In total, Hyundai’s standalone liabilities amount to ₹1,36,047.42 million, down from ₹1,53,688.72 million.

Consolidated Liabilities Overview

On a consolidated basis, which includes Hyundai’s subsidiaries and affiliates, total liabilities were slightly higher but followed a similar downward trend. Non-current liabilities were ₹25,345.71 million, with borrowings at ₹5,359.88 million. Current liabilities were ₹1,12,663.23 million, down from the previous year’s ₹1,29,971.87 million. Current borrowings stood at ₹2,558.37 million.

The total consolidated liabilities amounted to ₹1,38,008.94 million, down from ₹1,56,835.88 million.

Business Performance Amid Debt

Despite the presence of debt, Hyundai has delivered operational performance in FY25. The company reported revenues of ₹6,91,929 million and an EBITDA of ₹89,538 million, with a healthy EBITDA margin of 12.9%. The company’s domestic SUV segment led growth, contributing 68.5% to overall sales, and models like the Creta maintained a market share of over 30% in the midsize SUV category.

Hyundai is also embarking on an electric vehicle (EV) journey with the recent launch of the Creta Electric, indicating ongoing investments in future technologies.

Also Read: Hyundai Motor India Approves ₹694 Crore Investment for Tooling Centre!

Conclusion: Is Hyundai Debt-Free?

Hyundai Motor Company is not a debt-free company. Both standalone and consolidated financials clearly show borrowings and liabilities. However, the company is actively managing its debt levels, as evidenced by the reduction in total liabilities compared to the previous year. The presence of borrowings does not necessarily indicate financial weakness; instead, Hyundai uses debt strategically to support its growth, innovation, and operational scale.

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