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🚗 Maruti Suzuki Q1 FY26 Results – Steady Profit, Strong Exports, But Margins Under Pressure

Lesson 181/185 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

🚗 Maruti Suzuki Q1 FY26 Results – Steady Profit, Strong Exports, But Margins Under Pressure

CMP: ₹12,542 | Period: April–June 2025

1️⃣ Key Management Highlights 📢

From the Earnings Concall:

Industry Trends: Domestic PV industry declined 1.4% YoY; SUV share crossed 55%, MPVs at 11%, hatchbacks fell to 21% share from 46% in FY19.
Export Leadership: Maruti commanded 47.1% of India’s total PV exports, with 37.4% YoY export growth.
Safety First: All-new Dzire became India’s first sedan with 5-star Bharat NCAP rating; Baleno scored 4-star. 97% of volumes now come with six airbags.
SUV Milestones: Grand Vitara fastest mid-SUV to hit 3 lakh sales; Fronx fastest SUV to reach 1 lakh exports in 25 months.
Sustainability Initiatives: Solar capacity at 78.2 MWp, aiming for 319 MW by FY31 (85% renewable electricity share).
Logistics Efficiency: 24.3% of dispatches via rail in FY25; target 35% by FY31.

2️⃣ Consolidated Financial Performance 💹

(₹ in Cr)	Q1 FY26	Q4 FY25	Q1 FY25	YoY %	QoQ %
Sales Volume (units)	5,27,861	6,04,635	5,21,868	+1.1%
Revenue	38,605	40,920	35,779	+7.9%
Net Profit	3,792	3,911	3,760	+0.9%
EBIT Margin	8.3%	8.7%	11.1%	-280 bps	-40 bps
PAT Margin	10.1%	9.6%	10.8%	-70 bps	+50 bps
EPS (₹)	120.62	124.40	119.58	+0.9%

3️⃣ Segment & Regional Breakdown 🌏

Domestic Sales – 4,30,889 units (-4.5% YoY)

Mini: 19,522 (-36.6%) ⚠️
Compact: 1,77,270 (-6.3%) ⚠️
UVs: 1,61,868 (-0.8%)
Vans: 33,105 (-2.0%)
LCV: 8,510 (+7.1%) 👍
Sales to other OEMs: +18.8% 👍

Exports – 96,972 units (+37.4% YoY) 🚀

Strong performance in Japan (now 2nd largest export market).

4️⃣ Profitability, Growth & Valuation Ratios 📊

ROE: ~14.8%
ROCE: ~19.5%
EPS (TTM): ₹462.24
P/E (CMP ₹12,542): ~27x

5️⃣ Auto Industry KPIs 🚘

Volume Growth: Domestic -4.5%, Exports +37.4%
Market Share Change: SUV & MPV gaining share, hatchback declining.
Dealer Inventory: ~33 days (well-managed).

6️⃣ FY26 Outlook Based on Trends & Guidance 📅

Near-Term (Next 1–2 Quarters)

Expect improvement during festive season; rural demand holding up 🌾.
Two new SUV launches (one EV, one ICE) expected to boost volumes.
Margins may remain under pressure due to commodity & forex headwinds.

Full Year Estimates (Based on Current Trend & 4Q Average)

Sales Growth: ~7%
Profit Margin: ~5%
Profit Growth: ~9.3%

Long-Term (FY26–FY30)

Strong export expansion (100+ countries).
Higher EV penetration; hybrid & CNG to remain important for compliance and affordability.
Solar & rail initiatives to improve cost efficiency.

7️⃣ Positives & Negatives for Long-Term Investors

Positives 👍
✅ Market leader in exports with global expansion potential.
✅ Strong product pipeline in SUV & EV segments.
✅ Improving sustainability footprint (solar, rail logistics).
✅ Well-managed dealer inventory & strong rural presence.

Negatives ⚠️
⚠️ Domestic sales volume decline, especially in mini & compact cars.
⚠️ Margin pressure from commodities, forex, and new plant costs.
⚠️ Industry demand still sluggish; high reliance on SUV growth.

📌 Conclusion – Investment Stance

We maintain a Cautiously Optimistic stance. While Maruti remains a long-term structural leader in Indian PVs and is building a strong global presence, margin pressures and weak domestic demand warrant near-term caution.

For long-term investors: Gradual accumulation on dips is preferred.
Short-term traders: Monitor festive season sales & margin trends closely.

Disclosure: This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions.

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