Maruti Suzuki India on Friday reported a 10.8% decline in standalone net profit for the June quarter as surging raw material costs squeezed margins despite posting record vehicle sales, robust SUV demand and higher exports.
While revenue rose nearly 36% year-on-year and marginally beat Street estimates, operating profit fell well short of expectations as commodity inflation offset the benefits of higher volumes. The country’s largest carmaker posted a standalone net profit of Rs 3,352 crore during the period, compared with Bloomberg estimates of Rs 3,440 crore. Revenue from operations rose to Rs 52,456 crore, slightly ahead of estimates of Rs 52,309 crore, while Ebitda came in at Rs 4,311 crore against estimates of Rs 5,218 crore.
On a year-on-year basis, revenue increased 35.9%, but Ebitda declined 6.7% and net profit fell 10.8%. Ebitda margin contracted sharply to 8.2% from 12% a year earlier, reflecting the impact of higher input costs.
Commodity Inflation
The company attributed the pressure on profitability to rising material costs, which worsened during the quarter amid geopolitical tensions. “Material costs had started to increase in the quarter and were seriously aggravated during the war,” Maruti said in a statement, adding that the increase in input costs weighed on earnings despite strong demand.
SUV Surge
Operationally, the quarter remained one of Maruti’s strongest. Total sales volumes rose 29.3% year-on-year to a record 682,724 units. Domestic small car sales grew 34.1%, while SUV volumes jumped 44.6%, helping the company consolidate its leadership in the passenger vehicle market. Exports increased 28.6%, while domestic market share improved by 2.3 percentage points to 41.2%. The company said higher production was supported by the commissioning of its second manufacturing plant at Kharkhoda, with dealer inventory remaining at a healthy 13 days despite the strong sales momentum.
Separately, the board approved an initial investment of Rs 561 crore for four compressed biogas (CBG) manufacturing projects as part of Maruti’s alternative fuel strategy. The company said the first phase of the projects will help assess the commercial viability of CBG production before any expansion.
Maruti also noted that the financial statements have been restated for comparative purposes following the amalgamation of Suzuki Motor Gujarat with the company, with April 1, 2025 as the appointed date under the approved merger scheme.