Maruti Suzuki’s Standalone Profit Up by 1.7% in June Quarter

New Delhi, July 31: Maruti Suzuki India Ltd (NSE: MARUTI) has reported a modest 1.7% year-on-year (YoY) increase in standalone net profit, reaching ₹37,117 million for the quarter ended 30th June 2025. This growth was primarily propelled by higher export volumes, which managed to offset a subdued domestic demand environment. The total standalone revenue from operations also saw an 8.1% YoY rise, amounting to ₹366,247 million.

The modest rise in the profit pushed the shares of the company to fall by 0.77% or ₹97.00. The shares closed on Thursday at ₹12,521.00

Key Standalone Financial Highlights (₹ in million)

For Q1 FY26, Maruti Suzuki’s standalone net sales reached ₹366,247 million, marking an 8.1% increase compared to ₹338,753 million in Q1 FY25. The net profit for the quarter stood at ₹37,117 million, showing a 1.7% year-on-year growth from ₹36,499 million in the corresponding period last year. In terms of sales volume, the company sold a total of 527,861 vehicles in Q1 FY26, representing a 1.1% increase from approximately 522,100 units in Q1 FY25. However, domestic sales saw a 4.5% decline, with 430,889 units sold. This decline was significantly offset by a robust performance in export sales, which surged by 37.4% to 96,972 units.

Consolidated Performance Snapshot

On a consolidated basis for Q1 FY26, Maruti Suzuki reported a revenue from operations of ₹386,052 million, an increase of 7.9% compared to ₹357,794 million in Q1 FY25. The consolidated net profit for the quarter was ₹37,924 million, showing a 0.9% year-on-year growth from ₹37,597 million. Basic and diluted Earnings Per Share (EPS) also saw a 0.9% increase, reaching ₹120.62 from ₹119.58 in Q1 FY25.

Management Highlights

According to the press release:

“A decline in domestic sales of 4.5% was compensated by a robust 37.4% growth in exports, resulting in an overall sales volume increase of 1.1%,” the company noted.

Despite flat margins, efficient cost control and increased treasury income helped support profitability.

Strategic Updates

Regarding corporate strategy, the amalgamation of Suzuki Motor Gujarat with Maruti Suzuki India has received approval from the National Company Law Tribunal (NCLT) and is now awaiting the remaining necessary statutory clearances. In another development, Maruti Suzuki has deferred the accounting for its Extended Producer Responsibility (EPR) obligations. This decision was made due to the current unavailability of a centralised implementation framework for these regulations.

Insights For Investors

• Modest Profit Growth: Standalone net profit rose 1.7% YoY to Rs. 37,117 million, indicating stable but slow earnings momentum.
• Revenue Up: Standalone revenue grew by 8.1% YoY to Rs. 366,247 million, driven by stronger export performance.
• Domestic Weakness Offset by Exports: Domestic sales fell 4.5%, but exports surged 37.4%, helping total sales volume rise by 1.1%.
• Flat Margins, Managed Profitability: Despite flat margins, cost efficiency and treasury income supported the bottom line.
• Corporate Strategy in Motion: NCLT has approved the amalgamation with Suzuki Motor Gujarat; more statutory clearances are awaited.
• Regulatory Delay: EPR accounting has been deferred due to a lack of a centralised framework, indicating regulatory uncertainty.

What’s Ahead?

Maruti Suzuki’s focus on exports is likely to remain a key growth lever, especially if domestic demand stays muted. The approved merger with Suzuki Motor Gujarat could bring greater operational integration and cost efficiency in the coming quarters. However, regulatory uncertainties like the deferred EPR compliance may pose short-term challenges. Investors will watch for improvements in domestic sales and clarity on evolving policies. Overall, the outlook remains cautiously optimistic, backed by stable financials and a strong export pipeline.

About the Company

Maruti Suzuki India Ltd, listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), stands as India’s largest manufacturer of passenger vehicles. Established in 1981 by the Government of India as Maruti Udyog Limited, it quickly formed a joint venture with Suzuki Motor Corporation of Japan in 1982, marking Suzuki as the first major foreign automaker to invest in India. The company launched its iconic first car, the Maruti 800, in December 1983, which revolutionised personal transport in India due to its affordability and efficiency.

REF:https://nsearchives.nseindia.com/corporate/MARUTIASHISH_31072025145652_Results_30June2025.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations