Maruti Suzuki Q1 profit up 0.8% as exports offset weak domestic sales

Carmaker posts Rs 3,792 crore profit in Q1 FY26 as exports to Japan and others rise 37%, softening the impact of a 4.5% domestic sales decline

Maruti Suzuki India Ltd (MSIL), the largest carmaker in India, has posted a marginal rise of 0.8 per cent in its consolidated net profit at ₹3,792.4 crore during the first quarter of 2025-26 (Q1FY26), compared to ₹3,759.7 crore during Q1FY25. While the continued slump in small car sales and weak demand in urban markets led to a drop in domestic sales, it was compensated by a 37 per cent rise in exports.

 

The company’s total income for Q1FY26 was ₹40,493 crore, up 10 per cent compared to ₹36,840 crore in the year-ago period. During the period under review, the company’s total sales were 527,861 units — 430,889 units domestic, and the rest 96,972 units exports. “The decline in domestic sales of around 4.5 per cent versus last year was compensated by a robust 37.4 per cent increase in exports, resulting in an overall sales volume increase of 1.1 per cent for the quarter,” said Rahul Bharti, senior executive director-corporate affairs, MSIL.

 

 

Interestingly, industry exports were down by 2.1 per cent during Q1FY26, but the rise in Maruti Suzuki’s exports helped the industry to pull off a healthy 13 per cent growth during the quarter. This rise in Maruti Suzuki’s exports pushed the company’s export share to 47 per cent of the total industry. A bright spot in its overseas sales was the Japan market, which quickly became the number two export destination for the passenger vehicle (PV) major, with brands like Jimny and Fronx being the most popular in that market. 

 

“We are exporting to around 100 countries now. A lot of efforts have gone in over the last decade at a structural level for building exports. We have improvised our network in quantity and quality. We have launched more products. We have carried examples of success from Indian markets to these areas,” Bharti added.

 

Without divulging further details, Bharti said that the company is planning to launch two new SUVs this financial year. According to media reports, the company might launch the e-Vitara, to foray into the electric vehicle (EV) segment, and a seven-seater version of the Grand Vitara. Asked about the uncertainty regarding the imports of rare earths from China, he said: “It is a challenge. Our engineers are working to mitigate it and ensure that we do not have the impact of this. As of now, we are managing the situation. Internal combustion engine (ICE) vehicles also need it, but in a lesser quantity.”

 

With regard to CAFÉ (Corporate Average Fuel Efficiency) norms, he said a decision is expected within two months from the government. “It is expected that in two months, the final regulation will be out, so that we have clarity on powertrains starting from April 1, 2027,” he added.

 

Though the Q1 numbers were down, the company expects sales to pick up in the second and third quarters due to the festive impact. “The industry was expecting 1-2 per cent growth. The first quarter has not been up to the mark, while Q2 has some positives like the monsoon, rural demand, and festive season. We are looking at Q2 and Q3 festive season with optimism,” Bharti said.