India’s largest carmaker reported a sharp decline in quarterly profitability even as revenue surged 26%. Higher commodity prices, currency fluctuations and export-related challenges weighed on margins.
Highlights
- Maruti Suzuki’s Q2 FY27 net profit declined 26.9% YoY to Rs 2,415 crore.
- Revenue increased 26% to Rs 42,332 crore from Rs 33,540 crore.
- EBITDA fell 6.3% to Rs 4,763 crore, while margins contracted to 8.9%.
- Domestic sales rose 33.6% to 5,88,535 units, while exports declined 2.1%.
- The company plans to increase vehicle prices over the next six months.
- Maruti Suzuki expects sales growth of more than 40% in the second half of FY27.
Maruti Suzuki Q2 Results: Profit Drops 27% Despite Strong Revenue Growth
New Delhi, October 28, 2026: India’s largest passenger vehicle manufacturer, Maruti Suzuki India, reported a sharp decline in profitability for the second quarter of FY27 despite registering strong revenue growth. The company’s standalone net profit fell 26.9% year-on-year to Rs 2,415 crore, compared with Rs 3,303 crore in the corresponding quarter last year.
However, revenue from operations surged 26% to Rs 42,332 crore from Rs 33,540 crore a year earlier, reflecting strong domestic demand and higher vehicle sales.
EBITDA Margin Contracts to 8.9%
Maruti Suzuki’s EBITDA declined 6.3% to Rs 4,763 crore, compared with Rs 5,085 crore in the previous year. Its EBITDA margin contracted to 8.9% from 12%, highlighting growing pressure on profitability.
According to the company, higher input costs, commodity price increases and foreign exchange fluctuations affected its financial performance.
Vehicle Price Hike on the Cards
Maruti Suzuki Managing Director and CEO Hisashi Takeuchi said the company is considering further vehicle price increases to protect margins.
The automaker has already raised prices twice during the September quarter following GST-related changes. However, rising raw material costs and currency movements continue to create challenges.
Takeuchi said the company is pursuing cost-reduction measures, including tighter control over discretionary spending and marketing expenditure, to offset rising expenses.
Domestic Sales Jump 33.6%
Despite profitability challenges, Maruti Suzuki recorded strong sales growth during the quarter.
Domestic vehicle sales increased 33.6% year-on-year to 5,88,535 units, supported by improving consumer demand. However, exports declined 2.1% to 1,08,119 units.
Sales of mini, compact and mid-size cars rose 31.9% to 2,81,308 units, while utility vehicle sales increased 52.3% to 2,36,807 units.
The company expects demand momentum to continue through the coming months, particularly during the festive season.
Strong Growth Expected in Second Half
Maruti Suzuki expects sales growth to exceed 40% in the second half of FY27, potentially at a double-digit rate on a full-year basis, subject to production capacity expansion.
The company is also preparing to increase manufacturing capacity as demand strengthens.
However, rising commodity prices, foreign exchange volatility and regulatory cost pressures could continue to affect profitability in the coming quarters.
