Maruti Suzuki earnings fell in the July–September 2026 quarter despite record vehicle sales and revenue, as higher commodity costs and unfavorable foreign exchange movements weighed on profitability.

Key Takeaways

  • Quarterly vehicle volumes rose 26.5% year over year, while revenue exceeded ₹50,600 crore.
  • Operating EBITDA margin fell to 9.4% from 12.7% a year earlier.
  • The company ended September with approximately 2 lakh pending bookings.

Maruti Suzuki earnings squeezed by material costs

The Indian carmaker reported a 6.3% year-over-year decline in operating earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter of fiscal 2027. Operating profit, measured as EBIT, fell 17.1%.

In its investor presentation released on October 27, the company identified adverse commodity prices in the context of the West Asia conflict and unfavorable foreign exchange movements as pressures on performance. Better realizations and cost reductions provided some support, but did not prevent operating earnings from falling.

Material costs represented nearly 80% of net sales, up from about 76% a year earlier. The larger share left less revenue available to cover other expenses and profit.

Net profit declined to ₹2,414.9 crore from ₹3,302.8 crore a year earlier. The company also reported lower non-operating income because of mark-to-market losses on its invested surplus.

Domestic demand outpaces supply

Maruti Suzuki sold nearly 5.9 lakh vehicles in India during the quarter, an increase of 33.6% from a year earlier. Utility vehicles were a key growth driver, and the company said recently introduced SUVs received a strong response from buyers.

Domestic passenger vehicle market share rose to 40.8%. Capacity additions helped the company meet some of the increased demand, but demand continued to exceed supply. Network inventory stood at around 17 days at the end of September.

Exports declined slightly year over year. The company cited a challenging geopolitical environment.

Margins improve from the June quarter

Despite the year-over-year decline, operating EBITDA and EBIT each rose by around 10% from the preceding June quarter. The EBITDA margin improved to 9.4% from 8.6%.

The company attributed the sequential improvement to better realizations, cost reductions and the favorable effect of spreading fixed costs over higher production and inventory levels. Higher manufacturing overheads, depreciation, commodity prices and foreign exchange movements continued to weigh on performance.

For the April–September half year, vehicle volumes rose 27.9% and revenue grew 31% to more than ₹1 lakh crore. Net profit and operating earnings nevertheless fell from the year-earlier period.

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