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Maruti Suzuki — 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).
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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.
मारुति सुजुकी ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल बिक्री बढ़कर 47,500 करोड़ रुपये हो गई, जो पिछले साल से 29% ज्यादा है। मुनाफा 3,800 करोड़ रुपये रहा, जो 4% बढ़ा, लेकिन नए श्रम कानूनों के लिए 594 करोड़ रुपये अलग रखे गए। GST सुधार से देश में बिक्री 22% बढ़ी और रिकॉर्ड 6.83 लाख गाड़ियां बिकीं। कंपनी के पास सिर्फ 3-4 दिनों का स्टॉक बचा है। पहली बार गाड़ी खरीदने वालों की संख्या 7% बढ़ी और 1.75 लाख गाड़ियों का ऑर्डर बकाया है। हालांकि, धातुओं के दाम बढ़ने से मुनाफे पर दबाव पड़ा। कंपनी 2026 के मध्य तक दो नए कारखाने खोलेगी, जिनमें से हर साल 2.5 लाख गाड़ियां बनेंगी। लेकिन सावधानी: GST के बाद मांग कम हो सकती है और स्टील के दाम बढ़ सकते हैं।
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Post-GST demand sustainability
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Domestic Sales Volume Growth
22%
+22% YoY
Domestic sales volume grew 22% YoY in Q3 FY26, rebounding from a 5.8% decline in H1.
Retail Sales Volume
683,000 units
+22% YoY
Highest ever quarterly retail sales of over 683,000 units, driven by strong demand post-GST cut.
Order Book
175,000 vehicles
N/A
Healthy order book of around 175,000 vehicles, indicating sustained demand momentum.
First-Time Buyer Mix Increase
7%
+7pp YoY
First-time buyer proportion increased by 7 percentage points, signaling market expansion.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
UPDATED
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.
DROPPED
Industry growth of 6% in H2 FY26
Management expects overall industry growth of about 6% year-on-year in the second half and beyond.
DROPPED
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.
DROPPED
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.
NEW RISK
Post-GST demand sustainability
Management acknowledged that Q3 demand included some postponed and preponed elements; sustainable demand level needs reassessment.
NEW RISK
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.
NEW RISK
Rare earth supply constraints
Rare earth element supply issues caused 20 bps margin impact; management expects resolution as India develops local magnet manufacturing.
NEW RISK
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.
RISK GONE
Sustainability of small car recovery
The strong festive retail sales may include deferred purchases and festive euphoria; sustainability is uncertain.
RISK GONE
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.
RISK GONE
Forex and commodity headwinds
Forex (JPY) and commodities (PGM) together adversely impacted margins by 30 bps; hedging gains are non-operating.
RISK GONE
Market share recovery challenges
Global President noted that reaching 50% market share is more difficult than ever, despite product launches.
🤫 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
Kharkhoda second plant (April 2026) and Gujarat D-line (soon after) each add 250,000 units annual capacity.
Management acknowledged that Q3 demand included some postponed and preponed elements; sustainable demand level needs reassessment.
View Risks →