Maruti Suzuki Q1 Results: Net profit drops 9% as margin pressure offsets revenue growth; post-record sales

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India's largest passenger vehicle maker, Maruti Suzuki India Ltd, reported a muted set of earnings for the quarter ended June, as higher input costs and operating expenses weighed on profitability despite healthy revenue growth.
The company reported a consolidated profit after tax (PAT) of ₹3,446 crore, down 9.1% year-on-year (YoY) from ₹3,792 crore and 5.8% sequentially from ₹3,659 crore in the March quarter.
Revenue from operations rose 35.9% YoY to ₹52,469 crore from ₹38,605 crore, while remaining largely flat on a sequential basis compared with ₹52,462.5 crore in the previous quarter.
EBITDA declined to ₹4,313 crore, while the EBITDA margin contracted to 8.9% from 11.6% in the year-ago quarter, reflecting pressure on operating profitability.
The earnings come just a week after Maruti Suzuki announced a price hike of up to ₹30,000 across its vehicle portfolio, effective August 2026.
The company had said persistent inflationary pressures and an adverse cost environment had eroded the benefits of its cost-saving initiatives, prompting it to pass on a part of the higher input costs to customers.
The June-quarter results reflect the impact of these cost pressures, with total expenses rising faster than revenue and weighing on margins.
Total expenses during the reported quarter increased 40.5% YoY to ₹50,000 crore, outpacing the growth in revenue. Raw material costs jumped 45.9% to ₹32,013 crore, while employee benefit and other expenses rose 20.3% and 17.7%, respectively, as per the company's earnings filing.
The company's total sales volume reached a record high of 682,724 units in the June quarter, registering a 29.3% year-on-year growth.
Domestic sales of small cars increased 34.1%, while SUV sales surged 44.6%. Exports also registered healthy growth of 28.6% during the quarter.
Maruti Suzuki said its domestic market share expanded by 2.3 percentage points to 41.2%.
The higher sales were supported by the commissioning of its second manufacturing plant at Kharkhoda. Despite the strong sales momentum, dealer inventory remained healthy at around 13 days at the end of the quarter.
Net sales rose 36% to ₹49,959 crore in the June quarter of FY27 from ₹36,621 crore in the corresponding quarter of FY26.
However, the company said material costs started rising during the quarter and escalated sharply during the war, weighing on profitability. As a result, net profit declined to ₹3,352 (standalone) crore from ₹3,758 crore in the year-ago period.
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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