Maruti Suzuki Q4 net profit falls 6.9%, misses estimates despite strong revenue growth

Maruti Suzuki reports 6.9% decline in Q4 profit despite strong revenue growth, as rising input costs and taxes weigh on earnings.

Written by Nitin Kumar

April 28, 2026 19:48 IST

Maruti Suzuki reports 6.9% decline in Q4 profit despite strong revenue growth, as rising input costs and taxes weigh on earnings.

Maruti Suzuki India on Tuesday reported a 6.9% year-on-year decline in standalone net profit for the January-March quarter, even as revenue and operating performance exceeded Bloomberg estimates, with higher input costs and tax outgo weighing on earnings .

Net profit for the quarter stood at Rs 3,591 crore, down from Rs 3,857 crore in the year-ago period, and below Bloomberg’s estimate of Rs 4,098 crore. Revenue rose 28% year-on-year to Rs 52,449 crore from Rs 40,910 crore, ahead of the estimate of Rs 50,883 crore. Ebitda came in at Rs 6,157 crore, up 27% year-on-year and above the estimate of Rs 5,995 crore, indicating steady operating performance.

Increasing divergence

The divergence between operating performance and net profit was driven primarily by a sharp increase in raw material costs. Material costs rose to about Rs 35,169 crore in the quarter from Rs 29,234 crore a year earlier, absorbing a large part of the incremental revenue. This limited operating leverage, even as volumes and revenue expanded.

Inventory movements also turned adverse during the quarter, compared with a positive contribution in the same period last year, adding to cost pressures. Other expenses rose to about Rs 5,650 crore from Rs 5,409 crore a year earlier, further weighing on margins. As a result, profit before tax remained largely flat on a year-on-year basis despite the strong growth in revenue.

At the net level, higher tax outgo contributed to the decline in profit. Tax expense increased to about Rs 1,245 crore in the quarter from around Rs 1,036 crore a year earlier, offsetting the stable operating profit and leading to lower net earnings.

The March quarter performance reflects a broader trend of margin pressure, where strong revenue growth has not translated into proportionate profit expansion due to elevated costs. For the full year, standalone revenue rose to Rs 1,83,266 crore from Rs 1,52,868 crore, while net profit increased marginally to Rs 14,415 crore from Rs 14,298 crore.

Overall, the results indicate that while demand and revenue momentum remain strong, profitability continues to be constrained by input cost pressures.

This article was first uploaded on April twenty-eight, twenty twenty-six, at forty-eight minutes past seven in the evening.