Maruti Suzuki on Wednesday reported a 4% year-on-year (YoY) increase in standalone profit after tax (PAT) at Rs 3,794 crore for the December quarter, compared with Rs 3,659 crore in the same period last year.
Despite the muted profit growth, the company delivered a strong top-line performance. Revenue from operations surged 29% YoY to Rs 49,891 crore in Q3 FY26, up from Rs 38,752 crore a year ago, driven largely by robust domestic demand.
Maruti Suzuki margins hit by exports, one-time costs
The Swift maker’s quarterly profit came in below market expectations, primarily due to lower export realisations, which partly offset healthy domestic sales growth. Additionally, earnings were impacted by a one-time provision of Rs 594 crore linked to the implementation of the newly enacted labour codes.
On the positive side, GST reforms provided a significant tailwind, helping Maruti Suzuki record its highest-ever quarterly net sales. The recovery was especially strong in the small car segment, which continues to benefit from an 18% GST rate.
Sequential growth trends
On a sequential basis, performance remained healthy. Profit after tax rose 15% quarter-on-quarter (QoQ) from Rs 3,303 crore in Q2 FY26 to Rs 3,794 crore, while revenue increased 18% QoQ from Rs 42,332 crore in the September quarter.
Car Sales Performance
Maruti Suzuki reported its highest-ever quarterly domestic sales at 564,669 units, compared with 466,993 units in Q3 FY25, registering an increase of 97,676 units. The company noted that the small car segment alone contributed 68,328 units to this growth.
Including exports, total sales reached a record 667,769 units, up from 566,213 units in the year-ago quarter, which had included 466,993 domestic units and 99,220 exported units.
Maruti Suzuki stock performance
Maruti Suzuki shares closed 2.42% lower at Rs 14,877 on the NSE on Wednesday. Over the past month, the stock has declined by nearly 10%, although it remains up about 23% over the last one year.
From a technical perspective, Trendlyne data shows the 14-day RSI at 25.7, placing the stock in the oversold zone, which may indicate the possibility of a short-term rebound. However, the stock is currently trading below seven of its eight key simple moving averages, remaining above only the long-term 200-day SMA, signalling near-term weakness.
While Maruti Suzuki’s long-term fundamentals remain intact, near-term stock movement will likely depend on margin recovery, export performance, and overall demand momentum, making the stock one to watch closely in upcoming sessions.
What should investors do?
Motilal Oswal has reiterated its Buy rating on Maruti Suzuki, raising the target price to Rs 18,197 from Rs 17,937 earlier. The recent margin shortfall was largely due to higher cost pressures, rather than any weakness in demand or execution.
Looking ahead, new model launches are expected to help Maruti outperform peers and support earnings recovery. The GST rate cut has also played a positive role in reviving small car demand, making vehicles more affordable for price-sensitive buyers.
A recovery in market share could lead to a valuation re-rating for the stock, while exports are expected to remain a key growth engine. However, the brokerage has trimmed earnings estimates by 4% for FY26E and 7% for FY27E to factor in near-term pressures.
Despite these revisions, Maruti Suzuki is still expected to deliver a 16% earnings CAGR over FY25–28E, driven by new product launches and robust export growth.
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