Maruti Suzuki India Limited (MSIL), reported a 6.45% year-on-year decline in consolidated net profit for the fourth quarter ended March 31, 2026, even as strong demand and record vehicle sales drove robust revenue growth.

India’s largest carmaker posted a net profit of ₹3,659 crore in Q4 FY26, down from ₹3,911.1 crore in the corresponding quarter last fiscal, according to a regulatory filing. The decline was primarily attributed to mark-to-market impact and lower non-operating income during the quarter.

The company also reported a notional loss due to changes in bond yields—an accounting adjustment it indicated could be recovered over time—dragging overall profitability despite healthy operating performance.

Revenue from operations rose 28.2% year-on-year to ₹52,462.5 crore in the March quarter, compared with ₹40,920.1 crore in Q4 FY25, reflecting strong volume growth and improved realisations backed by record vehicle sales.

Record volumes power growth

The company reported its highest-ever quarterly sales at 676,209 units, up 11.8% year-on-year. Domestic sales stood at 538,994 units, while exports touched an all-time high of 137,215 units, underscoring strong demand across markets.

For the full year, total sales rose to a record 2,422,713 units, compared with 2,234,266 units in the previous fiscal. Domestic volumes came in at 1,974,939 units, while exports surged to 447,774 units, highlighting growing traction in overseas markets.

Costs surge, margins under pressure

Total expenses during the quarter climbed sharply to ₹48,125.3 crore, up from ₹37,585.5 crore in the year-ago period. The increase was largely driven by higher volumes and input costs, which constrained margin expansion.

The divergence between strong revenue growth and a decline in profit underscores the impact of rising costs and financial adjustments, highlighting pressure on margins even in a demand upcycle.

The double-digit growth in revenue points to sustained demand across segments, reinforcing the company’s dominant position in the domestic passenger vehicle market. Record sales volumes and better realisations supported the topline, indicating continued traction despite a competitive landscape.

Stock reaction reflects caution

Shares of the company ended lower following the earnings announcement, signalling investor concerns over margin pressures and earnings volatility. The stock declined 2.53% to settle at ₹12,891.70 on the BSE after falling nearly 3% intraday, while it closed 2.49% lower at ₹12,892 on the NSE.

Meanwhile, Maruti Suzuki's Board of Directors recommended a dividend of INR 140 per share for the year (face value of INR 5 per share) compared to INR 135 per share in FY2024-25.