New Delhi: Maruti Suzuki India Ltd., the country’s largest passenger carmaker, announced its April–June quarter (Q1 FY26) results on Thursday, July 31, significantly outperforming market expectations, particularly in terms of revenue and net profit.
Revenue and Net Profit Beat Estimates
For the quarter, revenue stood at ₹38,414 crore, exceeding the CNBC-TV18 poll estimate of ₹36,190 crore and registering an 8% year-on-year increase from ₹35,531 crore in Q1 FY25. This revenue beat was driven by higher Average Selling Prices (ASP) and export strength.
Net profit came in at ₹3,712 crore, marginally higher than last year’s figure and well above the market estimate of ₹3,078 crore. The healthy bottom-line performance was supported by a sharp rise in other income, which stood at ₹1,823 crore, compared to ₹975 crore in the same period last year.
Operating Metrics: EBITDA and Margins Under Pressure
Despite the top-line and bottom-line growth, EBITDA dropped by 11.2% year-on-year to ₹3,997 crore. The EBITDA margin also saw a contraction to 10.4% from 12.7% in the corresponding quarter last year, indicating rising input costs or pricing pressures.
ASP and Volume Trends of Maruti Suzuki
The Average Selling Price rose by 7% year-on-year and 8% quarter-on-quarter, indicating a favourable product mix and possibly increased demand for higher-end models.
Total vehicle volumes fell by 13% quarter-on-quarter, but registered a modest 1% increase on a year-on-year basis. The company noted that the domestic passenger vehicle market remained subdued, contributing to a 4.5% decline in domestic sales.
Exports: A Silver Lining
A major highlight was Maruti’s export growth, with shipments rising 37.4% year-on-year, helping offset the domestic weakness and strengthening the company’s overall financial position.
Stock Performance
Shares of Maruti Suzuki were trading 0.72% lower at ₹12,527 on the day of the results announcement. However, the stock has seen a year-to-date gain of nearly 12%, reflecting long-term investor confidence.
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