Maruti Suzuki's first-quarter net profit fell 11% year-on-year to ₹3,352 crore, while revenue from operations rose 36% to ₹52,456 crore, supported by strong vehicle sales.
Rising commodity and steel prices, along with supply chain disruptions linked to the Iran conflict, pushed up expenses by 40.5%.
Total sales volume increased 29.3%, led by growth in small cars, SUVs and exports, while the board approved ₹561 crore for four compressed biogas (CBG) projects.
Maruti Suzuki Q1 Profit Falls 11% Despite 36% Revenue Surge as Rising Costs Bite
Maruti Suzuki reported an 11% decline in first-quarter profit as higher raw material costs and supply chain disruptions offset robust sales growth and a sharp rise in revenue
Summary
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Maruti Suzuki India Ltd posted an 11 per cent year-on-year decrease in its net profit to Rs 3,352 crore for the quarter ended June. The automaker released its financial results after market hours on July 31, according to a stock exchange filing.
Revenue rose 36 per cent to Rs 52,456 crore, while expenses increased at a faster pace of 40.5 per cent to Rs 49,988 crore, dragged by higher input costs. Shares of Maruti Suzuki closed 0.4 per cent higher at Rs 14,240 apiece on July 31, ahead of the earnings release.
Rising Costs Squeeze Margins
Automobile demand across the country has seen a steady rebound following the GST reductions introduced last September. However, the manufacturer could not entirely protect its margins from escalating raw material prices.
The company executed product price hikes during the three-month period to mitigate the financial impact.
Despite these interventions, elevated commodity and steel prices restricted profitability. Supply chain complications associated with the war in Iran further intensified the situation.
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"Material costs had started to increase in the quarter and were seriously aggravated during the war," Maruti Suzuki stated in its regulatory filing.
Strong Volume Growth Driven
The company recorded robust operational performance alongside its revenue jump. "During the quarter, net sales increased 36% from Rs 36,620 crore in Q1FY26 to Rs 49,959 crore in Q1FY27," Maruti Suzuki noted. This financial growth aligned with rising vehicle dispatches.
"The Company total sales volume grew by 29.3% in the first quarter over the same period of the previous year," the automaker stated.
Segment demand showed broad-based expansion. "Domestic small cars sales grew by 34.1%, SUVs by 44.6% and exports by 28.6%," the company added.
Market positioning subsequently improved. "Domestic market share of the Company increased by 2.3 percentage points to 41.2%," Maruti Suzuki informed.
Recent capacity expansions directly supported this throughput. "Higher sales were possible because the Company commissioned its second plant in Kharkhoda," the manufacturer stated.
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Distribution channels remained highly efficient. "Despite increased sales, the network inventory level at the end of quarter was only about 13 days," the filing mentioned.
Board Approves Biogas Projects
The automaker's management also cleared new investments in the green energy sector. "The Board also approved 4 CBG projects in the first phase with a budget of Rs 561 crore," Maruti Suzuki stated.
Future production scale-up will depend on the early operational results of these facilities. "The Board would consider expansion of CBG manufacturing based on the experience of these projects," the company informed.