Maruti Suzuki Q2 Results: Profit Falls 27% To ₹2,415 Crore As Revenue Climbs 26% In September Quarter

Maruti Suzuki India Limited reported a sharp contraction in profit for the September quarter, even as revenue advanced. Higher input costs blunted the gains from increased vehicle sales.

The strain extended across its operating performance. Unfavourable commodity prices and exchange-rate movements weighed on results, while lower investment income dealt another blow to earnings. Improved vehicle realisations and cost-containment measures softened the impact, but could not fully absorb it.

Domestic demand continued to underpin growth, particularly in utility vehicles. Exports moved the other way, declining year-on-year. Consequently, the domestic market supplied most of the company's sales momentum.

Maruti Suzuki Q2 FY27 Results: Key Highlights

Maruti Suzuki shares closed at ₹11,450, gaining ₹230 or 2.05% during Tuesday's session. The stock traded between ₹11,190 and ₹11,460, against a previous close of ₹11,220. The rise ahead of the earnings announcement came despite the company's year-on-year profit decline, while the share price movement reflected the day's trading performance.

Rising Material Costs Pressure Margins

Material costs accounted for 79.9% of net sales, compared with 75.7% a year earlier. The company cited adverse commodity prices amid the West Asia conflict and unfavourable foreign exchange movements among the factors affecting profitability.

Mark-to-market losses on surplus investments curtailed non-operating income. There was some relief from improved realisations, favourable operating leverage and cost-reduction initiatives. These gains, however, fell short of offsetting the pressures.

Domestic Demand Drives Vehicle Sales

Domestic sales expanded 33.6% year-on-year to 588,535 vehicles, while exports edged down 2.1% to 108,119 units. Utility vehicles led the advance. Sales in the segment jumped 52.3%.

Across the first half of the financial year, net sales rose 31% to ₹1,00,574.6 crore. Net profit declined 18.3% to ₹5,767 crore. Revenue growth, therefore, did not translate into stronger earnings, as margin pressure persisted amid sustained vehicle demand.

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