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Maruti Suzuki — Q1 FY26
Maruti Suzuki reported Q1 FY26 net sales of INR 36,620 crore (+8.1% YoY) and net profit of INR 3,710 crore (+1.6% YoY), driven by a favorable product mix and strong export growth of 37.4% YoY, which offset a 4.5% domestic wholesale decline.
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Maruti Suzuki reported Q1 FY26 net sales of INR 36,620 crore (+8.1% YoY) and net profit of INR 3,710 crore (+1.6% YoY), driven by a favorable product mix and strong export growth of 37.4% YoY, which offset a 4.5% domestic wholesale decline. Domestic demand remained sluggish due to affordability issues, though rural markets showed positive growth. The company maintained conservative dealer inventory at 33 days. Management expressed cautious optimism for H2, citing two upcoming SUV launches (including an EV), a normal monsoon, and the festive season. Key risks include rare earth magnet supply chain challenges, potential margin pressure from new plant overheads, and uncertainty around CAFE norms impacting powertrain strategy.
मारुति सुजुकी ने पहली तिमाही में 36,620 करोड़ रुपये की बिक्री की, जो पिछले साल से 8.1% ज्यादा है। मुनाफा 3,710 करोड़ रुपये रहा, जो 1.6% बढ़ा। कंपनी को अच्छे प्रोडक्ट मिक्स और 37.4% ज्यादा एक्सपोर्ट से फायदा हुआ, जिससे घरेलू बिक्री में 4.5% की गिरावट की भरपाई हुई। शहरों में मांग कमजोर रही, लेकिन गांवों में बढ़ोतरी हुई। कंपनी ने डीलरों के पास 33 दिनों का स्टॉक रखा। प्रबंधन ने दो नई एसयूवी (एक इलेक्ट्रिक), अच्छे मानसून और त्योहारी सीजन से दूसरी छमाही में सुधार की उम्मीद जताई। चुनौतियों में दुर्लभ मैग्नेट की आपूर्ति, नए प्लांट का खर्च और कार्बन उत्सर्जन नियमों का असर शामिल है।
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Total Sales Volume
527,861 units
+1.1% YoY
Overall sales volume grew marginally, with domestic down 4.5% but exports surging 37.4%.
Export Volume
96,972 units
+37.4% YoY
Exports grew strongly, making Maruti 47.1% of India's PV exports; Japan became the second-largest export destination.
CNG Share in Domestic Sales
33%
+8pp YoY
One in three cars sold domestically was CNG, reflecting rising consumer preference for natural gas vehicles.
Dealer Inventory
33 days
flat QoQ
Inventory remained conservative at 33 days, among the most disciplined in the industry.
What Changed vs Last Quarter
NEW
EV exports to 100 countries by end of FY26
The company will dispatch EVs to about 100 markets globally, including Europe and Japan, within this financial year.
NEW
Solar capacity target of 319 MW by FY31
Plans to scale solar generation capacity from 78.2 MW to 319 MW by FY31, targeting 85% renewable electricity share.
NEW
Rail dispatch share target of 35% by FY31
Aims to increase rail dispatch share from 24.3% in FY25 to 35% by FY31, leveraging in-plant railway sidings.
UPDATED
Two SUV launches in FY26, including one EV
Maruti will launch two SUVs this fiscal year, one electric and one ICE, targeting the growing SUV segment (55% of industry).
DROPPED
Export growth of ~20% in FY26
Management expects exports to grow by at least 20% in FY26, building on the 17.5% growth in FY25.
DROPPED
Domestic industry growth of 1-2% in FY26
Maruti forecasts a modest 1-2% growth for the domestic PV industry in FY26, with the company aiming to outperform.
DROPPED
Capex guidance of ₹8,000-9,000 crore for FY26
Capital expenditure for FY26 is expected to be in the range of ₹8,000-9,000 crore, including SMG.
NEW RISK
Rare earth magnet supply chain risk
Rare earth magnets used in motors and sensors pose a supply challenge; management acknowledged it as a work in progress but did not quantify impact.
NEW RISK
Margin pressure from new plant overheads
The Karkoda plant (250k capacity) started production in Q4 FY25, causing ~30 bps margin hit due to low utilization; expected to normalize as volumes scale.
NEW RISK
Domestic demand weakness persists
Industry wholesale declined 1.4% YoY; Maruti's domestic sales fell 4.5% YoY, with first-time buyer affordability remaining a key drag.
NEW RISK
CAFE norm uncertainty
Final CAFE regulations expected in 1-2 months; any unfavorable outcome could impact powertrain strategy and EV adoption costs.
RISK GONE
Steel price inflation post-safeguard duty
Management flagged that domestic steel producers may use the safeguard duty to raise prices, impacting margins.
RISK GONE
Sustained weakness in entry-level demand
Chairman noted 88% of the country is not participating in car growth, with entry-level segment shrinking.
RISK GONE
EV profitability overhang
Management acknowledged EVs will have much lower profitability than ICE vehicles, potentially dragging overall margins.
RISK GONE
New plant ramp-up costs
Kharkhoda plant contributed 30 bps margin headwind in Q4; full benefit of scale will take time.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25
Management expects retail sales growth in Q4 to follow the 9-month trend of ~3.5%.
Mentioned in Q2 FY25, Q3 FY25
The upcoming greenfield plant at Kharkhoda is expected to begin operations within Q4 FY25.
Mentioned in Q3 FY25, Q4 FY25
Chairman noted 88% of the country is not participating in car growth, with entry-level segment shrinking.
Fast read
Guidance and risk preview
Maruti will launch two SUVs this fiscal year, one electric and one ICE, targeting the growing SUV segment (55% of industry).
Rare earth magnets used in motors and sensors pose a supply challenge; management acknowledged it as a work in progress but did not quantify impact.
View Risks →