Maruti Suzuki Q2 FY27 results: Net profit falls 26% to ₹2,466 crore as revenue jumps 26% to ₹53,356 crore

Maruti Suzuki India reported a 26.4% year-on-year decline in consolidated net profit to ₹2,466.1 crore for the July-September quarter of FY27, even as revenue from operations rose 26% to ₹53,355.5 crore. The automaker had posted a consolidated net profit of ₹3,349 crore and revenue of ₹42,344.2 crore in the corresponding quarter last year.

The decline in earnings came despite the company recording its highest-ever quarterly total sales volume of 696,654 vehicles, marking a 26.5% increase from the year-ago period. Higher input costs and losses arising from the valuation of investments weighed on profitability, offsetting some of the gains from stronger sales.

Commodity costs, investment losses hit profitability

Maruti Suzuki attributed the decline in operating profit to higher commodity costs amid the West Asia conflict. Its operating profit, measured by earnings before interest and tax (EBIT), fell 17.1% year-on-year to ₹2,803.7 crore from ₹3,382 crore in Q2 FY26.

The company also reported a sharp decline in non-operating income due to mark-to-market losses on invested surplus. These valuation losses, alongside higher operating costs, contributed to the decline in the bottom line.

Total expenses rose nearly 30% year-on-year to ₹50,619 crore during the quarter, compared with ₹39,018 crore a year earlier. The increase outpaced revenue growth, putting further pressure on profitability.

Record sales support revenue growth

The automaker's quarterly sales performance reflected robust demand across vehicle categories. Its domestic passenger vehicle market share increased by 2.2 percentage points to 40.8%, while small-car sales grew nearly 40% and SUV sales increased more than 68%.

Maruti Suzuki exported 108,119 vehicles during Q2 FY27, compared with 110,487 units in the corresponding period last year, indicating a marginal decline despite the increase in overall sales volumes.

The company's revenue growth was supported by higher volumes and demand across its portfolio, even as rising costs constrained the conversion of additional sales into profit.

Cost pressures remain a key monitorable

The September-quarter performance puts the spotlight on the company's ability to manage commodity inflation and improve operating profitability as production expands. While stronger domestic demand and increased SUV sales have supported volumes, the impact of raw-material costs and investment-related valuation losses remains significant.

The trajectory of operating margins, commodity prices and non-operating income will be key factors to watch in the coming quarters as Maruti Suzuki seeks to sustain sales growth while restoring earnings momentum.