NEW DELHI–Maruti Suzuki India reported a 26.4% decline in consolidated net profit for the second quarter of fiscal year 2027, as higher raw material costs linked to the conflict in West Asia and investment-related losses offset strong revenue growth and increased vehicle sales.
India’s largest passenger vehicle manufacturer posted a consolidated net profit of Rs 2,466.1 crore for the July-September quarter, even as revenue from operations climbed 26% year-over-year to Rs 53,355.5 crore.
The company attributed the decline in profitability primarily to rising commodity costs associated with the West Asia conflict and mark-to-market losses on its invested surplus funds.
Operating profit, measured as earnings before interest and taxes (EBIT), declined 17.1% to Rs 2,803.7 crore from Rs 3,382 crore in the corresponding quarter last year.
However, operating profit improved 10.8% compared with the preceding April-June quarter, indicating some sequential recovery in the company’s core operations.
Despite the pressure on earnings, Maruti Suzuki strengthened its position in India’s domestic passenger vehicle market.
The automaker’s domestic market share increased by 2.2 percentage points to 40.8%, supported by strong consumer demand.
According to its earnings report, demand continued to exceed available supply despite an expansion in production capacity.
As a result, dealer inventory remained relatively low at approximately 17 days of sales, while pending customer bookings stood at around 200,000 vehicles at the end of September.
The company’s export performance weakened slightly during the quarter.
Maruti Suzuki exported 108,119 vehicles in the July-September period, compared with 110,487 units during the same quarter of fiscal year 2026.
On a standalone basis, the automaker reported a net profit of Rs 2,414.9 crore, down from Rs 3,302.8 crore a year earlier.
The quarterly earnings decline came despite record sales volumes during the first six months of the current financial year.
Between April and September 2026, Maruti Suzuki sold 1,379,378 vehicles, its highest-ever half-yearly sales volume and an increase of 27.9% compared with the corresponding period last year.
The total included record domestic sales of 1,146,523 vehicles and exports of 232,855 units.
The sales performance reflected sustained demand for the company’s vehicles in India, even as higher costs continued to affect profitability.
During the first quarter of fiscal year 2027, Maruti Suzuki had reported a consolidated net profit of Rs 3,447 crore, compared with Rs 3,792 crore in the corresponding quarter of the previous year.
Revenue from operations during the April-June period increased 36% year-over-year to Rs 52,469 crore, supported by higher domestic sales and exports.
The latest results show that the company’s revenue growth has continued into the second quarter, although profitability remains under pressure from rising input costs and investment-related losses.
Maruti Suzuki shares closed approximately 2% higher at Rs 11,450 on Tuesday, ahead of the earnings announcement.
The company’s second-quarter performance highlights the contrast between strong vehicle demand and mounting cost pressures, with rising sales volumes and market share gains failing to translate into higher net earnings. (Source: IANS)
