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Maruti Suzuki — Q2 FY26
Maruti Suzuki reported Q2 FY26 net sales of INR 40,130 crore (+12.8% YoY) and net profit of INR 3,290 crore (+7.5% YoY).
bullish
high
✓ Verified against BSE filing
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Maruti Suzuki reported Q2 FY26 net sales of INR 40,130 crore (+12.8% YoY) and net profit of INR 3,290 crore (+7.5% YoY). Domestic volumes declined 5.1% due to pre-GST cut deferrals, but exports surged 42.2% to 110,487 units. Festive retail sales doubled to 400,000 units (vs 211,000 last year), with small cars growing 30% in October. Management guided for 6% industry growth in H2 and expects to exceed the export target of 400,000 units. The company reiterated its aspiration of 50% market share and 10% EBIT margin, supported by eight new SUV launches by 2030-31. Key risk: sustainability of the small car recovery given deferred sales and festive euphoria.
मारुति सुजुकी ने दूसरी तिमाही में 40,130 करोड़ रुपये की बिक्री की, जो पिछले साल से 12.8% ज्यादा है। मुनाफा 3,290 करोड़ रुपये रहा, जो 7.5% बढ़ा। देश में बिक्री 5.1% घटी क्योंकि लोगों ने जीएसटी कटौती से पहले खरीदारी टाल दी। लेकिन विदेशों में निर्यात 42.2% बढ़कर 1,10,487 गाड़ियां पहुंच गया। त्योहारी सीजन में खुदरा बिक्री दोगुनी होकर 4 लाख गाड़ियां रही, और छोटी कारों की बिक्री अक्टूबर में 30% बढ़ी। कंपनी का कहना है कि दूसरी छमाही में उद्योग 6% बढ़ेगा और वह 4 लाख गाड़ियों के निर्यात लक्ष्य को पार करेगी। 2030-31 तक आठ नई एसयूवी लॉन्च करके 50% बाजार हिस्सेदारी और 10% मुनाफा मार्जिन का लक्ष्य है। खतरा: त्योहारी उत्साह के बाद छोटी कारों की मांग टिकेगी या नहीं।
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Sustainability of small car recovery
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Total Sales Volume
550,874 units
+4.4% QoQ
Total sales volume for Q2 FY26, including domestic and exports.
Export Volume
110,487 units
+42.2% YoY
Exports grew robustly, with Maruti commanding 45.4% of India's PV exports.
Festive Retail Sales
400,000 units
+89.6% YoY
Retail sales during 22 Sep-31 Oct period, boosted by GST cut and festive demand.
Victoris Bookings
30,000 units
N/A (new launch)
Bookings for the newly launched Victoris SUV in a short span.
What Changed vs Last Quarter
NEW
Industry growth of 6% in H2 FY26
Management expects overall industry growth of about 6% year-on-year in the second half and beyond.
NEW
Exports to exceed 400,000 units in FY26
Given H1 exports of over 200,000 units, management expects to exceed the full-year export guidance of 400,000 units.
NEW
Eight new SUV launches by 2030-31
Global President announced eight more SUVs to be launched in India by the turn of the decade, excluding Victoris and eVITARA.
NEW
Aspiration of 10% EBIT margin and 50% market share
Management reiterated the goal of achieving 10% EBIT margin and 50% market share, as set by Suzuki Motor Corporation.
DROPPED
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
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Sustainability of small car recovery
The strong festive retail sales may include deferred purchases and festive euphoria; sustainability is uncertain.
NEW RISK
Margin pressure from discounting and mix
Higher sales promotion expenses (75 bps) and price corrections (20 bps) impacted margins; small car recovery could pressure blended margins.
NEW RISK
Forex and commodity headwinds
Forex (JPY) and commodities (PGM) together adversely impacted margins by 30 bps; hedging gains are non-operating.
NEW RISK
Market share recovery challenges
Global President noted that reaching 50% market share is more difficult than ever, despite product launches.
RISK GONE
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.
RISK GONE
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.
RISK GONE
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.
RISK GONE
CAFE norm uncertainty
Final CAFE regulations expected in 1-2 months; any unfavorable outcome could impact powertrain strategy and EV adoption costs.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q3 FY25
Final CAFE regulations expected in 1-2 months; any unfavorable outcome could impact powertrain strategy and EV adoption costs.
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.
Mentioned in Q1 FY26, Q4 FY25
Maruti will launch two SUVs this fiscal year, one electric and one ICE, targeting the growing SUV segment (55% of industry).
Fast read
Guidance and risk preview
Management expects overall industry growth of about 6% year-on-year in the second half and beyond.
The strong festive retail sales may include deferred purchases and festive euphoria; sustainability is uncertain.
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