Maruti Q2: Most analysts retain 'Buy' as new models, exports lift sentiment

Maruti Suzuki Q2 results: Motilal Oswal said Maruti Suzuki's Q2FY26 PAT was in line, while margins beat estimates due to an improved mix.

Brokerages largely maintained a positive stance on India’s largest automobile maker Maruti Suzuki India Ltd after the automaker reported an in-line Q2FY26 performance, with most citing strong demand recovery, robust exports, and a healthy product pipeline as key earnings drivers.

 

While Nuvama, Motilal Oswal, and HDFC Securities retained their ‘Buy’ ratings on the Maruti Suzuki stock with higher target prices in the ₹18,600-₹18,700 range, Choice Institutional Equities took a more cautious view, maintaining a ‘Reduce’ rating due to margin concerns and slower recovery in entry-level cars.

 

Most analysts expect Maruti Suzuki to deliver double-digit earnings growth over FY25-28, supported by new model launches such as Victoris and e-Vitara, continued growth in SUV and CNG segments, and strong export momentum.

 

 

However, on the bourses, Maruti Suzuki shares were struggling on Monday, November 3, 2025. The stock fell as much as 3.11 per cent to hit an intraday low of ₹15,688.00 per share. At 10:00 AM, Maruti Suzuki share price was trading 3.06 per cent lower at ₹15,696. In comparison, BSE Sensex was trading flat at 83,955.22 levels.

Nuvama: Raises EPS forecasts, upbeat on new launches

 

Nuvama Institutional Equities said Maruti’s Q2FY26 revenue grew 13 per cent Y-o-Y to ₹42,100, beating estimates on higher realisations from a better model mix, increased CNG share, and strong spare-part sales.

 

Ebitda remained flat at ₹4,430 crore, but ahead of estimates due to the revenue beat. The brokerage raised its FY26-28 EPS estimates by up to 5 per cent, factoring in higher volume and realization assumptions.

 

It expects 12 per cent revenue CAGR and 17 per cent Ebitda CAGR over FY25-28E, aided by new launches such as the Victoris and upcoming e-Vitara, along with steady SUV and export growth. Nuvama maintained a ‘Buy’ rating with a revised target price of ₹18,700 (earlier ₹18,200), valuing Maruti at 30x Sep-27E core EPS plus ₹2,351/share cash.  ALSO READ | Vedanta Q2 revenue, Ebitda hit record; brokerages see strong H2 outlook

Motilal Oswal: Small-car revival, exports to drive gains

 

Motilal Oswal said Maruti’s Q2FY26 PAT was in line, while margins beat estimates due to an improved mix. It noted that the GST rate cut has helped revive demand in the small-car segment, making vehicles more affordable for price-sensitive buyers.

 

The brokerage expects Maruti to gain market share, supported by the new Victoris and e-Vitara models. Exports are also on track to exceed the company’s FY26 guidance of 400,000 units (up 20 per cent Y-o-Y).

 

It added that any favourable government policy for hybrid vehicles could trigger a valuation re-rating. Motilal Oswal expects 17.5 per cent earnings CAGR over FY25-28 and reiterated its ‘Buy’ rating with a target price of ₹18,712, valuing the stock at 28x Sep’27E EPS.

HDFC Securities: Margins to improve as capacity ramps up

 

HDFC Securities said Maruti’s Ebitda margin at 10.5 per cent was in line with Bloomberg consensus but above its own estimate of 10.2 per cent. It expects margins to improve as capacity utilisation rises, supported by higher PV demand, the Victoris ramp-up, and growing exports.

 

The brokerage sees exports continuing to do well, driven by the company’s broader product portfolio and improved market penetration globally. It reaffirmed its ‘BUY’ call with a target price of ₹18,607, valuing the stock at 27x Sep-27 EPS.   ALSO READ | 'Market coupling' poses threat to IEX, says Nuvama; assigns 'Reduce' tag

Choice Institutional Equities: Cautiously optimistic; trims EPS

 

Choice Institutional Equities highlighted domestic recovery and robust exports as key positives, noting that Q2 exports grew 42.2 per cent Y-o-Y to 110,487 units, with Maruti maintaining a 45.4 per cent share of India’s passenger vehicle exports.

However, it cautioned that margin pressures, a slower recovery in mini-segment sales, and market share decline warrant a conservative stance.

 

The brokerage cut FY26E/27E EPS estimates by 3.8 per cent/5 per cent but revised its valuation multiple to 26x (from 24x), arriving at a target price of ₹15,800 (earlier ₹15,200). It maintained a ‘Reduce’ rating, while remaining “cautiously optimistic” about long-term prospects, aided by new launches, premiumisation, and export expansion.