Maruti Suzuki Q1 profit falls 11% to ₹3,352 cr, revenue rises 36%; board approves ₹561-cr compressed biogas projects
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Maruti Suzuki India reported a 10.8% year-on-year decline in consolidated net profit to ₹3,352 crore for the June quarter (Q1 FY27) as higher commodity prices, adverse foreign exchange movements and rising costs offset strong volume growth.
The country’s largest car maker had posted profit of ₹3,758 crore in the corresponding quarter last year, Maruti Suzuki said in an exchange filing today.
Revenue from operations rose 36.4% year-on-year (YoY) to ₹49,959 crore in Q1 FY27, from ₹36,621 crore in the year-ago period.
Operating EBITDA declined 6.7% to ₹4,311 crore in June quarter of FY27, from ₹4,621 crore a year earlier, while operating EBIT fell 17.4% to ₹2,531 crore from ₹3,065 crore. Profit before tax (PBT) also declined 11.5% to ₹4,341 crore from ₹4,906 crore in the corresponding quarter last year.
During the quarter under review, the country's largest carmaker reported a 29.3% increase in total sales volume to 682,724 units, compared with 527,861 units in Q1 FY26.
The company said margins were impacted by higher commodity prices amid the West Asia conflict, adverse foreign exchange movements, unfavourable fixed-cost incidence due to inventory depletion, higher employee expenses owing to seasonal factors, and increased depreciation following the commissioning of its Kharkhoda plant.
“Material costs had started to increase in the quarter and were seriously aggravated during the war,” it said.
Despite the margin pressure, Maruti Suzuki recorded robust growth across key segments. Domestic small-car sales increased 34.1%, SUV sales rose 44.6%, while exports grew 28.6% year-on-year. The company's domestic market share improved by 2.3 percentage points to 41.2%.
The strong volume growth was supported by the commissioning of the second manufacturing facility at Kharkhoda. Despite higher dispatches, dealer inventory remained comfortable at around 13 days at the end of the quarter.
“Higher sales were possible because the Company commissioned its second plant in Kharkhoda. Despite increased sales, the network inventory level at the end of quarter was only about 13 days,” the auto major said in its earnings report.
In a separate development, the board approved four compressed biogas (CBG) projects in the first phase with an investment of ₹561 crore. The company said it would evaluate further expansion of CBG manufacturing based on the performance and learnings from these initial projects.
Ahead of Q1 results, shares of Maruti Suzuki India ended 0.36% higher at ₹1,4239.40 on the BSE, with a market capitalisation of ₹4.48 lakh crore.