Maruti Suzuki's Q1 Net Profit Rises Marginally Amid Sluggish Domestic Demand

Maruti Suzuki India on July 31 reported a 7.6% increase in revenue to ₹38,605 crore in the first quarter of the financial year 2026 from ₹35,779 crore in Q1 FY25. The automaker’s net profit witnessed marginal growth of 1.7% to ₹3,792.4 crore in Q1 FY26 from ₹3,760 crore in Q1 FY25, driven by sluggish domestic demand mainly in its traditional stronghold of entry-level cars, including Mini, Compact and Mid Size vehicles. 

“In Q1, the domestic passenger vehicle industry continued to witness a sluggish demand environment. For the company, 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% for the quarter,” said Maruti Suzuki India in a statement. 

Maruti Suzuki India’s share closed about a 1% down at ₹12,521 on NSE in today’s trading session.

The automaker’s sales volume increased 1.1% to 527,861 in Q1 FY26 from 521,868 in Q1 FY25. The company’s net sales jumped 8.1% to ₹36,624.7 crores in Q1 FY26, from ₹33,875.3 crores in Q1 FY25. 

Maruti Suzuki India’s operational EBIT (Earnings Before Interest and Taxes) decreased by 18.9% to ₹3,057.8 crore in Q1 FY26 from ₹3,771.3 crore in Q1 FY25. This pressure on margin was driven mainly by adverse commodity prices and foreign exchange movement, higher sales promotion expenses and new plant-related expenses, the company noted. 

Maruti Suzuki’s majority business comes from domestic car sales. However, in the quarter concerned, its domestic sales volume dipped 4.5%, whereas international sales volume increased 37.4%. The company sold a total of 527,861 cars in the quarter, out of which domestic sales stood at 430,889 units and exports stood at 96,972 units. 

In Q1 FY26, the Mini segment sales volume dropped by 36.6% to 19,522 units, the Compact segment fell 6.3% to 177,270 units, the combined Mini and Compact segments sold just 196,792 units, reflecting a 10.6% decline.  

Meanwhile, Utility Vehicles (UVs) saw a marginal dip of 0.8% with 161,868 units. Van sales declined 2.0% to 33,105 units, while Light Commercial Vehicles (LCVs) were the only segment to grow, up 7.1% to 8,510 units.