Maruti vs Infy Q3 FY26

Maruti Suzuki reported a stellar Q3 FY26, with net sales surging to INR 47,500 crore (up ~29% YoY) and PAT at INR 3,800 crore (+4% YoY, impacted by a one-time provision of INR 594 crore for new labor codes). The GST reform drove a 22% domestic volume growth, with retail sales hitting a record 683,000 units and inventory at just 3-4 days. Management highlighted robust demand across segments, a 7% increase in first-time buyers, and a healthy order book of 175,000 vehicles. However, margins faced headwinds from commodity inflation (PGM, aluminum, copper) and rare earth supply issues. Guidance includes two new plants (Kharkhoda and Gujarat D-line) coming online by mid-2026, each adding 250,000 units capacity. Key risk: sustainability of demand post-GST euphoria and potential steel price hikes.

Guidance read

Two new plants to add 500,000 units capacity by mid-2026: Kharkhoda second plant (April 2026) and Gujarat D-line (soon after) each add 250,000 units annual capacity. Export volume target of 400,000 units for FY26: On track to achieve the export guidance of 400,000 units for the current fiscal year. CapEx run rate of INR 10,000 crore per year: Current CapEx run rate is about INR 10,000 crore annually; next year's budget to be finalized by March. Sustainable volume growth of ~7% initially estimated: Management had given an initial sustainable volume growth figure of about 7%, to be reassessed in three months.

Risk read

Key risks include Post-GST demand sustainability — Management acknowledged that Q3 demand included some postponed and preponed elements; sustainable demand level needs reassessment.; Commodity inflation (PGM, steel, aluminum, copper) — PGM content is ~2% of net sales; steel prices may rise due to safeguard duty misuse. Hedging is calibrated and may not fully offset spikes.; Rare earth supply constraints — Rare earth element supply issues caused 20 bps margin impact; management expects resolution as India develops local magnet manufacturing.; Export tariff risks (South Africa, global trade) — Potential increase in duties in South Africa and other global trade/tariff issues pose risks to export growth..

Promise ledger

Of 1 tracked promise, management 1 met, 0 close, 0 missed.

IN

Infy

Q3 FY26 · Diversified

Infosys delivered a strong Q3 FY26 with constant currency revenue growth of 1.7% YoY and adjusted operating margin of 21.2%, expanding 20 bps sequentially. Large deal TCV was robust at $4.8 billion with 57% net new, including a $1.6B NHS deal. The company raised FY26 revenue guidance to 3%-3.5% (from 2%-3%), while maintaining margin guidance of 20%-22%. Growth was driven by Financial Services and Energy/Utilities, where discretionary spending is returning and AI adoption is accelerating. Management sees FY27 growth acceleration in these two verticals. AI momentum is strong with 4,600 projects and 500 agents built. Risks include tariff uncertainties impacting Manufacturing and Retail, and potential compression in legacy services due to AI-led productivity.

Guidance read

FY26 revenue growth guidance raised to 3%-3.5% CC: Infosys raised its constant currency revenue growth guidance for FY26 from 2%-3% to 3%-3.5%. FY26 operating margin guidance maintained at 20%-22%: Operating margin guidance remains unchanged at 20%-22% for FY26. Growth acceleration in Financial Services and EURS in FY27: Management expects growth in Financial Services and Energy, Utilities, Resources, and Services verticals to accelerate in FY27 over FY26.

Risk read

Key risks include Tariff uncertainties impacting Manufacturing and Retail — Manufacturing and Retail/CPG verticals are impacted by tariff uncertainties, delaying client decisions and pressuring discretionary spend.; AI-led productivity compressing legacy services — AI-driven productivity benefits may compress legacy service revenues, though management sees net positive from new AI opportunities.; Potential contract attrition from Daimler — Analyst raised concerns about press reports of Daimler moving away; management noted current contracts valid till Dec 2026 but did not provide specifics..

Promise ledger

Of 3 tracked promises, management 0 met, 0 close, 3 missed.