Maruti Suzuki Q1 profit slips 11 per cent despite record sales as costs bite

New Delhi: Maruti Suzuki hit the accelerator on sales in the June quarter, but rising raw material costs and currency headwinds ensured its profits remained stuck in a lower gear. India’s largest carmaker posted record quarterly sales volumes, yet saw earnings decline as higher input costs squeezed margins.

For the quarter ended June 30, 2026, Maruti Suzuki India reported a standalone net profit of Rs 3,352.1 crore, down 10.8 per cent from Rs 3,758.1 crore a year earlier. Profit also fell 6.6 per cent sequentially from Rs 3,590.5 crore recorded in the March quarter.

Basic and diluted earnings per share declined to Rs 106.62 from Rs 119.53 in the corresponding quarter last year.

The automaker’s sales performance, however, remained robust. Total vehicle sales rose 29.3 per cent year on year to a record 6,82,724 units, driven by a 29.5 per cent increase in domestic sales to 5,57,988 units.

The strong demand translated into standalone net sales of Rs 49,959.1 crore, up 36.4 per cent from the year-ago period. Revenue from operations stood at Rs 52,455.7 crore, supported by Rs 1,736.4 crore in service revenue and Rs 760.2 crore in other operating income. Including non-operating income, total standalone income reached Rs 54,329.4 crore.

While the top line gathered pace, profitability came under pressure as expenses rose sharply.

Total expenditure climbed to Rs 49,988.1 crore, compared with Rs 35,574.9 crore a year earlier. Raw material costs emerged as the biggest drag, accounting for 80.5 per cent of net sales, compared with 74.5 per cent in the same quarter last year.

The company attributed the sharp increase to higher global commodity prices triggered by the continuing West Asia conflict, adverse foreign exchange movements and unfavourable fixed cost incidence resulting from inventory depletion.

The cost pressures significantly compressed operating margins.

Operating EBITDA declined 6.7 per cent year on year to Rs 4,311.1 crore, while the EBITDA margin narrowed by 400 basis points to 8.6 per cent.

Operating EBIT fell 17.4 per cent to Rs 2,531.1 crore, with the EBIT margin shrinking to 5.1 per cent from 8.4 per cent a year ago.

Profit before tax stood at Rs 4,341.3 crore, down 11.5 per cent, while the PBT margin contracted to 8.7 per cent.

Employee benefit expenses rose to Rs 2,456.9 crore due to seasonal adjustments during the quarter, while depreciation and amortisation increased to Rs 1,780 crore following capacity expansion at the Kharkhoda manufacturing facility.

On a consolidated basis, which includes two subsidiaries, 14 associates and three joint ventures, Maruti Suzuki reported revenue from operations of Rs 52,469.8 crore and total income of Rs 54,343.8 crore.

Consolidated net profit stood at Rs 3,446.9 crore, compared with Rs 3,792.4 crore in the corresponding quarter last year, translating into a basic earnings per share of Rs 109.63.

The quarterly comparison also reflects the amalgamation of Suzuki Motor Gujarat, which became effective on December 1, 2025, with an appointed date of April 1, 2025.

Looking ahead, Maruti Suzuki flagged uncertainty around the implementation of the Environment Protection (End-of-Life Vehicles) Rules, 2025. While the new framework introduces Extended Producer Responsibility obligations for vehicle manufacturers, the company said it is unable to estimate the financial impact until the government notifies the pricing mechanism for scrappage certificates.

Despite delivering record vehicle sales, the June quarter underscored that volume growth alone may not be enough to drive earnings. For Maruti Suzuki, restoring margins amid volatile commodity prices and currency movements will be key to shifting profits back into top gear in the coming quarters.