Maruti Suzuki reports flat profit growth for Q1 FY26 on sluggish demand

The carmaker's revenue from operations rose 7.9 per cent Y-o-Y to ₹38,605.2 crore in Q1 FY26, up from ₹35,779.4 crore in Q1 FY25

Maruti Suzuki India on Thursday reported a consolidated net profit of ₹3,792.4 crore for the first quarter of the financial year 2025-26 (Q1 FY26). This was marginally up from ₹3,759.7 crore in the same period last year. On a sequential basis, profit was down 3 per cent from ₹3,911.1 crore in Q4 FY25.

 

The carmaker's revenue from operations rose 7.9 per cent Y-o-Y to ₹38,605.2 crore in Q1 FY26 from ₹35,779.4 crore in Q1 FY25. However, revenue declined 5.7 per cent sequentially from ₹40,920.1 crore in the March quarter.

 

The company cited adverse movements in commodity prices and unfavorable foreign exchange rates as major pressures on margins during the quarter. Additionally, higher sales promotion expenses further weighed on profitability. Maruti Suzuki also incurred increased expenses related to the upcoming Kharkhoda greenfield plant, the company said in a BSE filing.

 

 

Maruti Suzuki's total expenses increased 11 per cent Y-o-Y to ₹35,585.4 crore in the quarter from ₹32,061.8 crore. However, on a sequential basis, expenses declined 5.3 per cent from ₹37,585.5 crore in the previous quarter.

 

Sluggish domestic demand pulls down sales growth

 

The company also stated that domestic demand for passenger vehicles was sluggish during the quarter, but this was cushioned by growth in exports.

 

"In Q1, the domestic passenger vehicle industry continued to witness a sluggish demand environment. For the company, a decline in domestic sales of 4.5 per cent was compensated by a robust 37.4 per cent growth in exports, resulting in an overall sales volume increase of 1.1 per cent for the quarter," the company said.

 

Maruti Suzuki sold a total of 527,861 vehicles in the June quarter, comprising 430,889 units in the domestic market and 96,972 units in exports, the carmaker said. The total net sales stood at ₹36,624.7 crore, up from ₹33,875.3 crore in Q1 FY25.

 

Shares of Maruti Suzuki closed at ₹12,634.45 apiece on the BSE on Thursday.

 

Maruti Suzuki Q1 FY26 result highlights

 

• Revenue from operations: ₹38,605.2 crore
• Profit: ₹3,792.4 crore
• Earnings per share: ₹120.62 (basic and diluted)
• Total car sales: 527,861 units