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Informist, Wednesday, Jul. 29, 2026

 

By Anand JC

 

MUMBAI – For the June quarter, Maruti Suzuki India Ltd. is expected to report the strongest growth in its revenue in the last 15 quarters.  But its profit is expected to fall the most in the last seven quarters amid rising costs linked to raw materials and depreciation, according to brokerages. The Grand Vitara maker was among the last passenger vehicle companies in India to announce price hikes to offset rising raw material costs.

 

Maruti Suzuki's net profit for the June quarter is estimated to fall 13% on year to INR 32.18 billion, according to the average of 18 estimates. The highest estimate for the company's net profit is INR 37.60 billion from Axis Securities Ltd. and the lowest is INR 25.85 billion from Elara Securities (India) Pvt. Ltd.

 

The company's revenue for the June quarter is forecast at INR 525.19 billion, which implies a year-on-year jump of 37% on year, according to the average of 18 estimates. The projections range from INR 512.85 billion by Anand Rathi Share and Stock Brokers Ltd. to INR 532.67 billion by ICICI Securities Ltd.

 

Maruti Suzuki is slated to report its best revenue growth since the September quarter of 2022 as the company continued to see the benefit of the cut in Goods and Services Tax, which became effective late last year. While the momentum has somewhat moderated on a sequential basis, wholesale despatches continue to remain strong compared to a year ago.

 

The company sold 682,724 cars in the June quarter, up 29% on year and 1% on quarter – with robust growth registered in domestic and overseas markets. Wholesale sales in the local market grew 30% on year to 557,988 units in this period, and exports increased almost 29%. Domestic sales accounted for around 80% of its overall sales pie. "We expect revenue to grow ~34% YoY, driven by robust volume growth of ~29%, supported by healthy domestic demand, strong exports, improved product mix, and US$ appreciation," Nirmal Bang Equities Pvt. Ltd. said.

 

The automaker retained its position as India's leading passenger vehicle manufacturer in the June quarter, with a retail market share of 40.85%, up from 38.44% a year ago. Limited production capacity remained one of the key constraints for the company during the March and June quarters. The capacity constraint curbed growth in despatches to dealerships and prompted the company to fast-track its capacity expansion plans.

 

Maruti Suzuki expects to commission the second plant at its Kharkhoda facility in Haryana and the fourth production line at its Hansalpur facility in Gujarat during the current financial year. Each of these units will add an annual production capacity of 250,000 units. In addition, the board approved a second greenfield manufacturing plant in Gujarat. The carmaker currently has a total installed production capacity of 2.60 million units per annum across its facilities in Haryana and Gujarat. Over the medium term, Maruti Suzuki aims to increase its production capacity to 4 million units per annum.

 

Analysts expect the average selling price of the company's cars to have risen 0.5-7% in the June quarter, with most estimates clustered at the higher end of the range. ICICI Securities stands out as the only outlier, projecting just a 0.6% on-year increase in realisations. Maruti Suzuki bit the price-hike bullet relatively late, raising prices by up to INR 30,000 from June. "Growth is expected to be supported by an improved product mix, with the utility vehicles contribution rising to 32.1% in Q1FY27 from 30.7% in Q1FY26, along with a stronger export mix and new product launches," Axis Securities said.

 

Maruti Suzuki's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to rise around 11% on year to INR 51.10 billion, according to the average of 14 estimates. The highest EBITDA estimate is INR 56.71 billion from Axis Securities and the lowest is INR 48.02 billion from Elara Securities.

 

The company's EBITDA margin is projected to shrink year-on-year due to higher raw material costs, expenses related to starting new capacity, and lower operating leverage from the newly added capacities. Maruti Suzuki's EBITDA margin could fall 74 basis points year-on-year, according to SMIFS Ltd., while Yes Securities has projected a milder 60 bps fall. The carmaker had reported an EBITDA margin of 12% for the year-ago quarter "We estimate EBITDA margin to decline by 230 bps QoQ to 9.4%, led by raw material headwinds, inferior product mix (higher mix of hatchbacks), higher manufacturing costs and year-end appraisals, partly offset by lower advertisement spends and cost-control measures," Kotak Securities said.

 

Maruti Suzuki is slated to detail its June quarter financials on Friday. At 1227 IST, shares of Maruti Suzuki were at INR 13,908 on the National Stock Exchange, up 0.8%. The stock has increased around 2% since Apr. 28, when the company announced its March quarter earnings. 

 

As many as 13 research reports on Maruti Suzuki of the 14 on the company available with Informist have a "buy" call, with an average target price of INR 16,655 per share. This is around 26% higher than Wednesday's close.

 

Following are the Apr-Jun earnings estimates for Maruti Suzuki from 18 brokerages, in descending order by the estimate of net profit, in INR billion:

 

Brokerage

Net sales	Net profit	EBITDA
Axis Securities Ltd.	526.01	37.60	56.71
Prabhudas Lilladher Pvt Ltd.	529.55	34.19	50.31
YES Securities (India) Ltd.	518.96	33.67	51.00
HDFC Securities Ltd.	519.14	33.59	N.A.
Nirmal Bang Equities Pvt Ltd.	517.15	33.40	53.01
PhillipCapital (India) Pvt Ltd.	521.60	33.22	53.50
Nuvama Wealth Management Ltd.	530.31	33.21	50.91
Motilal Oswal Financial Services Ltd.	514.13	32.93	49.91
ICICI Securities Ltd.	532.67	32.51	50.43
JM Financial Institutional Securities Pvt Ltd.	531.58	32.29	52.94
SMIFS Ltd.	521.68	32.15	50.40
Kotak Securities Ltd.	526.48	31.97	49.53
Asit C. Mehta Financial Services Ltd.	531.10	31.79	N.A.
360 ONE Capital Market Pvt Ltd.	532.19	31.35	N.A.
Anand Rathi Share and Stock Brokers Ltd.	512.85	30.14	N.A.
Nomura Equity Research	528.92	29.99	49.68
Bank of America global research	529.55	29.38	49.03
Elara Securities (India) Pvt Ltd.	529.55	25.85	48.02
Average	525.19	32.18	51.10

 

End

 

Edited by Himanshi Gupta

 

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