Maruti Suzuki profit falls as costs surge

For the quarter ended June 30, 2026, Maruti Suzuki’s revenue from operations rose about 35.9% year-on-year to ₹52,456 crore. The increase was driven by robust demand and higher vehicle dispatches across key segments. Vehicle sales volume climbed about 29.3% over the same period a year earlier.

Growth was broad-based, with domestic small car sales rising about 34.1% year-on-year and SUV sales up around 44.6%. Exports also grew, increasing about 28.6% on a year-on-year basis. The company stated that its domestic market share expanded to about 41.2% in the quarter.

Despite strong revenue growth, profitability weakened in the June quarter. Standalone net profit stood at ₹3,352.1 crore, representing a decline of about 10.8% year-on-year. On a consolidated basis, profit after tax was reported at ₹3,446.9 crore, down 9.1% year-on-year.

At the operating level, EBITDA was about ₹4,311 crore. The EBITDA margin compressed to roughly 8.2%, compared with double-digit levels a year earlier. This margin contraction underscored the impact of rising costs on the company’s profitability.

Total expenses in the quarter rose faster than revenue, increasing about 40.5% year-on-year to around ₹49,988 crore. Raw-material and input costs were a key driver, with raw-material costs cited as rising about 45.9% to roughly ₹32,013 crore. Management linked these pressures to commodity and supply disruptions tied to the Middle East conflict.

In response to elevated input costs, the company announced price increases of up to ₹30,000 across its vehicle portfolio. These hikes are aimed at partly offsetting the impact of higher raw-material costs on margins. However, the June-quarter figures indicate that cost inflation still weighed significantly on operating performance.

Maruti Suzuki highlighted increased production capacity as a support for higher volumes in the quarter. The ramp-up followed the commissioning of the Kharkhoda plant, which contributed to improved vehicle dispatches. This additional capacity helped the company meet growing demand in both small car and SUV segments.

The board also approved the first phase of four Compressed Biogas (CBG) projects with a planned investment of ₹561 crore. These projects form part of the company’s cleaner-fuel initiatives. Alongside the pricing actions and capacity expansion, the CBG investment signals ongoing strategic moves while the company navigates near-term margin headwinds.