The Maruti Suzuki share price declined 3.4% in intraday trade. The fall in the stock price came after the company posted its quarterly results and announced the October sales update. 

The company’s domestic sales fell 5.1% to 4,40,000 units in Q2 FY26 due to the postponement of purchases in anticipation of GST-related price cuts, while exports surged 42.2% to an all-time quarterly high of 1,10,000 units.

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Nomura on Maruti Suzuki: Margins to improve in H2

Nomura maintained its ‘Neutral’ rating on Maurti Suzuki, with a target price of Rs 16,956, implying an upside of 4.6%. The brokerage expects the automobile giant’s margins to rise in H2 on lower discounts and operating leverage. 

Also, the brokerage firm believes that the strong pent-up demand and aggressive pricing by the company will improve the outlook for hatches in the near term. 

However, SUV growth is likely to remain higher, which could keep market share under pressure over the medium term.

“We factor in 5% higher ASPs, driven by better mix (likely CNG and parts). The guidance of 6% industry growth seems conservative. We revise Maruti Suzuki’s FY26 domestic volumes by -3% to +3% YoY (implies 10% growth in H2 FY26). We factor in 8% and 5% domestic growth in FY27 and FY28, respectively. We raise export volumes by 4% to 432k +30%,” said Nomura. 

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Motilal Oswal on Maruti Suzuki: GST rate cut will drive market share

Motilal Oswal maintained its ‘Buy’ rating on the stock, with a target price of Rs 18,712, implying an upside of 16% from the current market price. The brokerage stated that the GST rate cut has helped revive small car demand as vehicles are now much more affordable for price-conscious consumers. This, coupled with the launch of the new Victoris, as well as the e-Vitara, is likely to help drive market share gains for Maruti Suzuki from here on.

Also, the company anticipates exceeding its exports growth guidance of 400k units (+20% growth YoY) in FY26. Further, any favourable policy for hybrids by the government may drive a re-rating, as Maruti Suzuki would be the key beneficiary of the same, said the brokerage house.