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Maruti Suzuki Q1 FY26 Results: Profit Flat at ₹3,792 Cr, Revenue Grows ~8% on Export Strength

  • nvshah0610
  • Jul 31
  • 2 min read
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Maruti Suzuki posted a modest 0.9% YoY gain in consolidated net profit at ₹3,792.4 crore in Q1 FY26, up from ₹3,759.7 crore a year earlier. Despite a 6% decline in domestic sales, overall performance was supported by a 37.4% surge in exports, pushing total volumes up 1.1%. Revenue grew ~8% YoY to ₹38,605 crore, aided by price increases implemented in April. Robust non-operating income nearly doubled, offsetting pressure on operating margins due to elevated costs. 

📊 Q1 FY26 Financial Highlights

Metric

Q1 FY26

YoY Change

Key Insight

Consolidated PAT

₹3,792 cr

+0.9%

Flat growth amid margin headwinds

Standalone PAT

₹3,711.7 cr

+1.7%

Export-led resilience in standalone business

Revenue from Operations

₹38,605 cr

+7.9–8.1%

Driven by export growth and price hikes

Sales Volume

5,27,861 units

+1.1%

Domestic decline offset by 37% surge in exports

Domestic Sales

4,30,889 units

–4.5%


Exports

96,972 units

+37.4%

Export strength becomes key growth lever

Operating EBIT

₹3,057.8 cr

–18.9%

Margin pressure from rising input & plant start-up costs

EBIT Margin

~8.3%

↓ from 11.1%

Margin contraction due to costs & forex headwinds

Other Income

~5% of net sales

Sharp YoY rise

Other income almost doubled YoY

PAT Margin

~10.1%

↓ from 10.8%

Decline in overall profit margin

Key Drivers & Operational Commentary

  • Export-led growth: Strong international demand and price hikes launched in April helped offset a nearly 6% decline in domestic auto sales. Total volumes rose 1.1% YoY. 

  • Rising costs & start-up expenses: Margins came under pressure due to increasing commodity prices, stronger rupee, promotional spends, and greenfield plant expenses

  • Non-operating income boost: Income from treasury and investments almost doubled, bolstering bottom-line despite operating softness. 

Market Reaction & Analyst Sentiment

Maruti's Q1 performance surprised analysts with its ability to beat consensus estimates (~₹3,105 cr) despite a sluggish domestic environment. Exports and higher non-core income helped cushion the impact of weak domestic demand. Investors appeared cautiously optimistic, with stock trading roughly flat post-announcement.Agent analysts noted challenges in reshaping the product mix toward higher-margin SUVs while managing legacy hatchback pressure. 

Broader Industry Context

Amid muted industry-wide domestic PV demand—some of the lowest in two years—Maruti stood out by leveraging its exports and cost containment efforts. Still, rising commodity prices and slower uptake in entry-level segments flagged a tactical pivot evolving toward higher-value utility vehicles and urban markets. 

✅ Summary & Outlook

Maruti Suzuki’s Q1 FY26 results reflect resilience in volume and export strategy, coupled with strong non-core income cushioning operational softness. Though profitability rose marginally, significant margin pressure and domestic demand headwinds persist. Key near-term focus will be:

  • Recovery in domestic demand and volume mix

  • Expansion in SUV and UV segments

  • Cost control in raw materials and promotional spends

  • Sustained export momentum and non-operating income streams




Source:-Maruti Suzuki India,Chatgpt

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