Maruti Suzuki India (MARUTI) Q1 26/27 earnings summary

Executive summary

• Sales volume increased 29.3% year-over-year to 682,724 units, with small car sales up 34% and SUV sales up 44.6% in Q1 FY27.

• Net sales for Q1 FY27 were INR 499.6 billion, up 36.4% year-over-year, with consolidated revenue at ₹524,698 million.

• Domestic market share rose by 2.3 percentage points to 41.2%, and export volumes grew 28.6%, maintaining over 55% share of India's passenger vehicle exports.

• Commissioned two new plants, adding 500,000 units of annual capacity, raising total capacity to 2.9 million units.

• Amalgamation of Suzuki Motor Gujarat Private Limited became effective December 1, 2025, with restated comparative figures.

Financial highlights

• Net profit for Q1 FY27 was over INR 33.5 billion (standalone), with consolidated net profit at ₹34,469 million, both down year-over-year.

• Operating profit margin (EBIT) declined to 5.1% of net sales from 8.8% sequentially, and EBITDA margin fell to 8.6% from 12.6% year-over-year.

• PAT margin dropped to 6.7% from 10.3% year-over-year.

• Material cost as a percentage of sales increased 600 bps year-over-year.

• CNG vehicle share reached 40%; export revenue was about INR 11,500 crore.

Outlook and guidance

• Growth outlook remains at 10%, constrained by supply, with ramp-up of new plants expected to support further growth.

• Margin pressures expected to persist due to adverse commodity prices and foreign exchange movements, especially linked to West Asia conflict.

• Price increases implemented in June (50 basis points) and another planned for August, with most benefits expected in Q2.

• Management expects normalization of commodity settlement cycle and margin recovery over the next few quarters.

• The company is unable to reliably estimate financial obligations under the new Environment Protection (End-of-Life Vehicles) Rules, 2025.