Maruti Suzuki Posts Standalone Profit of 2,415 Crore Rupees as Margin Falls to 8.9%
Key Facts
Maruti Suzuki’s board approved unaudited second-quarter results on October 27, 2026, following a review by the audit committee, reporting standalone net profit of 2,415 crore rupees, down 26.9% from 3,303 crore rupees a year earlier. Revenue, by contrast, rose 26% to 53,340 crore rupees from 42,332 crore rupees in the corresponding period. Revenue growth coincided with a decline in profit amid a clear contraction in operating margin. Record sales volume underscored the strength of business activity during the quarter but did not prevent a fall in profitability. The results were therefore mixed: revenue and units sold expanded, while operating and net profit came under pressure.
Earnings before interest, taxes, depreciation and amortization fell 6.3% year on year to 4,764 crore rupees, while the margin contracted to 8.9% from 12.0% in the year-earlier quarter. The margin squeeze highlights a widening gap between revenue growth and declining operating profit, despite higher sales volume. Net sales also rose to 506,155 million rupees from 401,358 million rupees in the second quarter of fiscal year 2025-26. The figure reflects higher sales value compared with the corresponding period, while margin pressure persisted. These indicators put operating profitability at the center of the results, alongside the substantial increase in sales.
Net profit and revenue fell short of estimates from NDTV Profit, which forecast 2,933 crore rupees in profit and 53,744 crore rupees in revenue. Operating profit, however, exceeded its estimate of 4,683 crore rupees, coming in at 4,764 crore rupees. The comparison means the company missed expectations for net profit and revenue but beat them for operating profit. Maruti Suzuki shares rose 2.05% during the day to 11,450 rupees on the NSE on the results announcement. At the same time, the Nifty 50 fell 0.02%, according to NDTV Profit data.
Quarterly sales volume reached 696,654 units, a company record, up 26.5% from the corresponding period. This came amid a buoyant Indian market: passenger vehicle sales in the country rose 30.7% to 1.36 million units in the second quarter of fiscal year 2026-27, according to the Society of Indian Automobile Manufacturers. The association attributed the market’s growth to improved affordability after GST 2.0, a lower comparison base, continued rural demand and strong seasonal spending. But Indian passenger vehicle exports fell 5.2% to 2.29 lakh units, due to a higher comparison base and logistical constraints linked to the West Asia crisis. This backdrop shows the contrasting market conditions for domestic demand and exports during the period.
Company data for the first quarter of fiscal year 2026-27 show total sales volume rose 29.3% year on year, with domestic small-car sales up 34.1%, sport utility vehicle sales up 44.6% and exports up 28.6%. In that quarter, net profit fell to 33,521 million rupees from 37,581 million a year earlier. The company said that “material costs started rising during the quarter and escalated sharply during the war,” adding that net profit was affected. These earlier results provide context for the change in profitability from one quarter to another, alongside sales growth. Across the broader industrial sector, India’s index of industrial production grew 8.0% year on year in August, compared with 6.7% in July’s quick estimate, while manufacturing rose 9.0%.
The president of the Society of Indian Automobile Manufacturers said the industry expects momentum to continue through the festive season, while remaining “cautiously optimistic” amid geopolitical and economic uncertainty. The association expects infrastructure investment and economic growth to support the second half of the fiscal year. The Ministry of Statistics is due to release the quick estimate of the index of industrial production for September on October 28, 2026. The ministry publishes these estimates on the 28th day of each month, or on the next working day if the date falls on a holiday. The scheduled release comes a day after Maruti approved its results, adding an official indicator to the picture of Indian industrial activity.