Smallholder maize cultivation is prevalent in the marginal areas of India, under diverse agro-climatic conditions. Abiotic stress tolerant maize cultivars are expected to be highly beneficial in reducing the production risks and enhancing farmer livelihoods, especially in the face of climate change. Nevertheless, the adoption and production risk implications of any of the crop varietal technologies in the marginal areas of India have not been widely examined. In this paper, we analyse the case of hybrid maize adoption, using data from a survey of 340 maize-growing households from three stress-prone regions in India. Hybrid maize adoption varies from 33% to 99% in these locations. A probit model is used to assess the factors determining adoption. The outcomes of hybrid maize adoption are examined in terms of yield and profitability, employing mean-variance analysis. We find a clear superiority of the hybrid technology with respect to yield enhancement, per-unit cost reduction and risk reduction only in one of the study locations. Our findings indicate significant economic potentials for developing abiotic stress tolerant maize cultivars for India's marginal environments.