Maruti Suzuki's quarterly profit falls 26.36% in spite of record vehicle sales

Record quarterly vehicle sales failed to shield Maruti Suzuki India from a drop in profit as higher input costs linked to the West Asia conflict weighed on the carmaker’s earnings in the July-September quarter.

The company’s consolidated net profit fell 26.36 per cent to Rs 2,466.1 crore from Rs 3,349 crore a year earlier, even as revenue from operations rose to Rs 53,355.5 crore from Rs 42,344.2 crore.

Total expenses during the quarter rose to Rs 50,619 crore from Rs 39,018.4 crore in the year-ago period, the company said in a regulatory filing.

The cost of materials consumed increased to Rs 37,488.5 crore from Rs 25,324.2 crore in the corresponding period of the previous fiscal.

In a statement, Maruti Suzuki India said its operating profit, or earnings before interest and tax (EBIT), stood at Rs 2,803.7 crore during the quarter, compared with Rs 3,382 crore in the second quarter of 2025-26, owing to commodity price increases linked to the West Asia conflict.

Operating profit rose 10.8 per cent sequentially from the first quarter of 2026-27. However, non-operating income declined sharply in the second quarter due to mark-to-market losses on invested surplus.

“The company achieved its highest-ever quarterly total sales volume of 696,654 units, registering a growth of 26.5 per cent over the same period previous year. The company’s growth in the domestic passenger vehicle market was broad-based, with small car sales increasing by 35.9 per cent and SUV sales by 68.2 per cent. The company’s recently introduced SUVs received a strong market response and contributed to this robust growth,” it stated.

Maruti Suzuki India said its domestic market share increased by 2.2 percentage points to 40.8 per cent.

“Recent capacity additions have enabled the company to serve the strong demand. Even with enhanced production capacity, demand continued to outpace supply resulting in a low network inventory of about 17 days and pending bookings of about 200,000 units at the end of the quarter. In export markets, despite the challenging geopolitical situation, the company could achieve sales of 1,08,119 units in Q2 FY 2026-27, as compared to 1,10,487 units in Q2 FY25-26,” Maruti Suzuki said.