Maruti Suzuki’s quarterly sales reached a record high, but a 26.4% profit decline and shrinking margins put pressure on the shares, prompting brokerages to cut targets while highlighting new-model momentum.
Maruti Suzuki India’s shares came under pressure after the carmaker reported a weaker-than-expected second quarter, even as revenue rose sharply on the back of record sales volumes. The company posted a 26.4% year-on-year fall in consolidated net profit to ₹2,466.1 crore for the July-to-September period, while revenue climbed 26% to ₹53,355.5 crore, according to results cited by multiple Indian business publications. The company said its quarterly sales touched an all-time high of 696,654 units, with domestic market share at 40.8%, while exports slipped slightly to 108,119 units.
The earnings decline was driven mainly by higher input costs and mark-to-market losses, which weighed on operating performance. Moneycontrol reported that operating profit fell 17.1% from a year earlier to ₹2,803.7 crore, while ET Now said EBITDA margin narrowed to 8.9%. The company’s own commentary remained constructive, with Maruti Suzuki saying it still expects 10% domestic growth in the second half of the fiscal year, even as it acknowledged a softer demand backdrop.
Brokerages, however, were cautious on the outlook. Jefferies cut its target price to Rs 13,046 from Rs 14,071, saying September-quarter EBITDA fell 6% year on year and warning that margins remain under pressure. Nomura kept a Neutral rating and lowered its target price to Rs 13,046 from Rs 14,071, pointing to demand risks in fiscal 2028, particularly for hatchbacks, if interest rates, inflation, monsoon conditions or oil prices become less favourable. Nomura also noted that small cars and vans, which account for about 58% of Maruti Suzuki’s volumes, are more exposed to such swings.
At the same time, analysts highlighted several positives that could support the stock over time. Nomura said bookings for the new Brezza have been encouraging, with 35% of orders for the 1.0-litre turbo petrol variant and another 35% for the underbody CNG version. Motilal Oswal Financial Services retained a Buy rating and said it expects Maruti Suzuki to deliver an 11% earnings compound annual growth rate between fiscal 2026 and fiscal 2028. JM Financial also stayed positive, trimming its target price slightly to Rs 14,170. Choice Institutional Equities upgraded the stock to Buy from Add, citing the recent share-price correction, market-share gains at home, a refreshed product line-up, capacity expansion and stronger demand for small cars. It also pointed to the Baleno’s upgraded features and Maruti Suzuki’s export strength, saying the company accounted for more than half of India’s passenger vehicle exports in the first half of fiscal 2027.
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