Maruti Suzuki India Limited (MARUTI)
🎯 Key Takeaways
- Maruti Suzuki is in a mature growth phase with stable profitability but facing margin pressure from external cost headwinds. Management is actively managing cost structures and expanding green manufacturing capacity, while maintaining strong cash flows and a conservative capital structure.
- Revenue grew 17.9% QoQ to ₹49,904 in Q3FY26.
- ⚠️ Margin pressure from rising commodity prices and foreign exchange volatility, which management explicitly cited as impacting profitability despite vol
📖 The Story
Maruti Suzuki is in a mature growth phase with stable profitability but facing margin pressure from external cost headwinds. Management is actively managing cost structures and expanding green manufacturing capacity, while maintaining strong cash flows and a conservative capital structure. The company demonstrates resilience in volume growth but requires operational efficiency to offset commodity and FX volatility.
📰 What's Happening
In Q1 FY27, Maruti reported a 36% YoY revenue increase to ₹49,959.1 million driven by 29.3% volume growth to 682,724 units, though net profit declined 10.8% YoY to ₹33,521 million due to rising material costs and foreign exchange pressures. The Board approved four CBG manufacturing projects with a ₹5,610 million budget to expand eco-friendly vehicle production, with plans to evaluate expansion based on project outcomes. Operational efficiency was highlighted with inventory reduced to 13 days, and the company continues to manage cost reduction initiatives amid adverse commodity prices.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 38,471 | 35,779 | 37,449 | 38,764 | 40,920 | 38,605 | 42,344 | 49,904 |
| Operating Profit | 6,405 | 6,167 | 6,522 | 6,134 | 6,355 | 6,511 | 6,032 | 6,628 |
| OPM % | 13.6% | 14.3% | 13.3% | 13.1% | 11.8% | 12.0% | 12.0% | 11.2% |
| Net Profit | 3,952 | 3,760 | 3,103 | 3,727 | 3,911 | 3,792 | 3,349 | 3,879 |
| EPS | ₹251.42 | ₹119.58 | ₹98.68 | ₹118.54 | ₹124.40 | ₹120.62 | ₹106.52 | ₹123.38 |
Operating margins have moderated from 14.3% in Q1 FY25 to 11.17% in Q1 FY26, reflecting margin compression from external cost pressures despite revenue growth. Net profit trends show a peak in Q4 FY25 (₹3,952 Cr) followed by a decline in subsequent quarters, aligning with management's disclosure of rising input costs. Revenue growth remains robust, with Q1 FY27 revenue up 36% YoY, but profitability is being pressured by factors outside volume-driven expansion, necessitating sustained cost control measures.
🔮 Management Outlook & What's Next
Management did not provide formal forward guidance in the latest filing, but highlighted that board will evaluate expansion of CBG manufacturing projects based on implementation experience. The company emphasized ongoing cost reduction efforts and operational efficiency to navigate commodity and foreign exchange headwinds, while continuing to leverage scale in domestic demand and new plant capacity to drive volume growth.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | 2024-2025 | 2024-2025 | 2024-2025 | 2024-2025 | 2025-2026 |
|---|---|---|---|---|---|
| Equity Capital | 157 | 157 | 157 | 157 | 157 |
| Reserves | — | 88,969 | — | 96,083 | 99,587 |
| Borrowings | — | 15 | — | 0 | 34 |
| Total Liabilities | — | 32,571 | — | 35,732 | 38,709 |
| Fixed Assets | — | 28,616 | — | 32,493 | 34,603 |
| Investments | — | 57,820 | — | 66,265 | 65,473 |
| Total Assets | — | 1.22 L Cr | — | 1.32 L Cr | 1.38 L Cr |
The balance sheet reflects a strong equity base of ₹157 Cr with substantial reserves of ₹99,587 Cr and minimal borrowings of ₹34 Cr, indicating a conservative capital structure. Total assets have grown to ₹1.38 L Cr, supporting expansion initiatives like CBG manufacturing without significant leverage. This financial flexibility enables strategic investments in green technology while maintaining resilience against market volatility.
💰 Cash Flow Statement (₹ Cr)
| Item | 2020-2021 | 2020-2021 |
|---|---|---|
| Operating | +2,109 | +8,687 |
| Investing | -305 | -7,291 |
| Financing | -1,813 | -1,545 |
| Net Cash Flow | — | — |
👥 Shareholding Pattern
| Category | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 |
|---|---|---|---|---|---|---|---|---|
| Promoters | 58.2% | 58.2% | 58.2% | 58.3% | 58.3% | 58.3% | 58.3% | 58.3% |
| FII | 19.6% | 19.0% | 17.7% | 15.5% | 15.0% | 15.2% | 15.8% | 15.8% |
| DII | 19.0% | 19.5% | 20.9% | 23.0% | 23.6% | 23.3% | 22.6% | 22.9% |
| Public | 3.2% | 3.3% | 3.2% | 3.3% | 3.1% | 3.2% | 3.3% | 3.0% |
| # Shareholders | 3,64,375 | 3,89,314 | 3,82,573 | 4,06,570 | 3,78,893 | 3,67,608 | 3,69,205 | 3,66,153 |
Institutional investor interest remains stable, with FII holdings holding steady at ~15.7% over recent quarters and DII increasing from 22.63% to 23.33%. Promoter holding is unchanged at 58.28%, and the number of public shareholders has slightly declined, suggesting no major dilution or exit by large investors. The consistent institutional presence supports confidence in the company's long-term strategy.
⚖️ Peer Comparison — Automobiles
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| TVS Motor Company Limited | 8.24 L Cr | 393.5 | — | — | — |
| Maruti Suzuki India Limited | 4.16 L Cr | 27.8 | 19.8% | 15.5% | 0.00 |
| Mahindra & Mahindra Limited | 3.88 L Cr | 22.2 | 14.6% | 20.4% | 1.57 |
| Bajaj Auto Limited | 2.90 L Cr | 32.6 | 31.6% | 25.3% | 0.26 |
| Eicher Motors Limited | 1.92 L Cr | 35.9 | 28.6% | 25.2% | 0.01 |
| Hyundai Motor India Limited | 1.48 L Cr | 27.3 | — | — | — |
| Tata Motors Passenger Vehicles Limited | 1.31 L Cr | 4.2 | — | — | — |
| Hero MotoCorp Limited | 1.01 L Cr | 18.6 | 33.9% | 28.2% | 0.02 |
| Ather Energy Limited | 35,872 | — | — | — | — |
| FORCE MOTORS LTD | 26,530 | 53.0 | — | — | — |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Margin pressure from rising commodity prices and foreign exchange volatility, which management explicitly cited as impacting profitability despite volume growth. 2. Uncertainty in estimating financial impacts of new environmental regulations on end-of-life vehicle scrapping, which could affect future compliance costs. 3. Execution risks associated with CBG manufacturing expansion, as scalability and profitability of these projects remain unproven.
📋 Recent Filings
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Announcement 1 August 2026Maruti Suzuki India Limited reported July 2026 production of 248,845 vehicles, up from 187,073 in July 2025, reflecting strong year-on-year growth in ...
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🔴 Financial Results 31 July 2026Maruti Suzuki India Limited announced that the audio recording of its investor call held on 31 July 2026 for the quarter ended 30 June 2026 is now ava...
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🔴 Financial Results 31 July 2026Maruti Suzuki reported a 36.4% YoY increase in net sales to ₹49,959.1 million for Q1 FY27, driven by a 29.3% rise in sales volume to 682,724 units, th...
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🟡 Board Meeting 31 July 2026Maruti Suzuki India Limited announced unaudited standalone financial results for the quarter ended June 30, 2026, approved by its board on July 31, 20...
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🔴 Financial Results 31 July 2026Maruti Suzuki India reported a 36% YoY rise in net sales to INR 499,591 million for Q1 FY2026-27, driven by strong domestic demand and new plant capac...
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Announcement 30 July 2026Maruti Suzuki announced that its ongoing Competition Commission of India case was adjourned to September 28, 2026, after a hearing scheduled for July ...
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Announcement 30 July 2026Maruti Suzuki India announced the commencement of commercial production at its fourth plant in Hansalpur, Gujarat, effective 30th July 2026, adding 25...
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Announcement 28 July 2026Maruti Suzuki announced a conference call for Q1 FY2026 results on July 30, 2026 at 5:30 PM IST, inviting analysts and investors to discuss performanc...
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Announcement 24 July 2026Maruti Suzuki India Limited announced the launch of the New Brezza Turbo Boosterjet SUV on 24 July 2026, targeting young customers with sporty perform...
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Announcement 21 July 2026Maruti Suzuki India announced it will raise vehicle prices by up to Rs. 30,000 starting August 2026 to offset rising input costs, marking the first ex...
🧠 Analyst's Read
Maruti continues to demonstrate strong volume growth and operational scale, but margin resilience will be tested by external cost pressures and regulatory uncertainties. Investors should monitor management's ability to control input costs and successfully scale CBG projects as key near-term catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-03.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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