GST-led rebound drives Maruti Suzuki's highest-ever quarterly revenue

PAT grows 4% YoY impacted by one-time provision of ₹593 cr on account of the New Labour Codes

Maruti Suzuki India Ltd (MSIL), the country’s largest passenger vehicle maker, reported a 4.1 per cent year-on-year increase in net profit to ₹3,879 crore for the December quarter, absorbing a one-time provision of ₹593.9 crore linked to the implementation of new Labour Codes. Revenue, on the other hand, surged to a record ₹49,904 crore, up 28.7 per cent -- the fastest pace in more than three years -- powered by the company’s highest-ever quarterly domestic sales.

 

The maker of Swift and Dzire sold 564,669 vehicles in India during the quarter, riding a sharp rebound in demand for entry-level cars. A year ago, it had sold 466,993 units. Small cars, which fall under the 18 per cent GST slab, accounted for 68,328 units of the incremental volume. Exports also edged higher to 103,100 units from 99,220 units in the year-ago period.

 

 

Maruti’s shares slipped 2.3 per cent on the BSE during market hours after the results marginally missed Bloomberg analysts’ estimates on both revenue and profit.

 

The company said it is facing modest pressure from commodity costs, including platinum group metals (PGM), aluminium and copper. PGM content as a percentage of net sales is about 2 per cent.

 

Rahul Bharti, senior executive officer for corporate affairs at MSIL, said demand remains strong across categories. “We are seeing healthy demand across segments. Small cars, which were earlier in a negative growth zone, have moved into positive territory, and their growth swing is larger than that of bigger cars,” he said, adding that first-time buyers are taking a larger share of sales.

 

“We have seen a 6-7 percentage point increase in first-time buyers, which is a very healthy sign. Anecdotally, we are seeing more helmets in showrooms, indicating two-wheeler owners upgrading to cars,” he said.

 

The quarter also capped the second consecutive calendar year in which Maruti crossed annual production of two million vehicles. The company expects two new plants, each with an annual capacity of 250,000 units, to come onstream shortly.

 

Bharti said Maruti’s capital expenditure run rate is around ₹10,000 crore a year. “If demand exists, we will ensure supply is not found lacking -- there is no dearth of funds to put up new plants.”

 

On rare earth magnet supplies, Maruti said the impact has been limited. “Instead of importing just magnets, we were constrained to import larger aggregates or sub-assemblies, of which magnets are a part. To that extent, higher imports and some air freight costs were incurred,” Bharti said. “The rare earth impact is minor, at about 20 basis points, and is not a long-term issue.”

 

He added that the Indian government has invited global manufacturers to set up local magnet production. “Sooner or later, India will manufacture these domestically, and this will not remain a structural problem.

 

Maruti reiterated that its electric vehicle launch remains on track. “There is no delay in our EV rollout. We are serving over 100 markets already, and the domestic launch of our EV should happen very soon,” the executive said.

 

For the April-December period of FY26, Maruti posted its highest-ever nine-month sales volume, net sales and net profit. Total volumes, including exports, rose 7 per cent year-on-year to 1,746,504 units. Net sales climbed 16.7 per cent to ₹124,290 crore, while net profit rose nearly 4 per cent.

 

Suzuki Motor Gujarat Pvt Ltd, a wholly owned subsidiary of Maruti Suzuki India, was amalgamated with the parent company with effect from December 1, 2025.