Maruti Suzuki India Ltd has announced a 26.36 per cent drop in its consolidated net profit for the second quarter ending September, totalling Rs 2,466.1 crore. This decline is attributed to increased input costs linked to the ongoing conflict in West Asia. In the same quarter last fiscal, the company had reported a net profit of Rs 3,349 crore, as disclosed in a regulatory filing.

Despite the profit decrease, the company experienced a significant rise in revenue, which surged to Rs 53,355.5 crore, compared to Rs 42,344.2 crore during the corresponding period of the previous fiscal year. This revenue growth is largely driven by record vehicle sales volumes, indicating strong market demand for Maruti’s offerings.

In terms of overall expenses, Maruti Suzuki reported a rise to Rs 50,619 crore for the quarter, up from Rs 39,018.4 crore in the same quarter last year. The cost of materials consumed also saw a substantial increase, climbing to Rs 37,488.5 crore from Rs 25,324.2 crore in the previous fiscal year’s second quarter.

Operating Profit and Sales Volume

The operating profit, or EBIT, for the second quarter stood at Rs 2,803.7 crore, a decrease from Rs 3,382 crore reported in Q2 FY25-26. This decline is primarily attributed to rising commodity prices influenced by the geopolitical situation in West Asia. However, on a sequential basis, this figure reflects a growth of 10.8 per cent from the first quarter of FY26-27.

Maruti Suzuki achieved its highest-ever quarterly total sales volume, reaching 696,654 units, which marks a 26.5 per cent increase compared to the same period last year. The growth in the domestic passenger vehicle market was broad-based, with small car sales increasing by 35.9 per cent and SUV sales rising by 68.2 per cent. The strong market response to the company’s newly launched SUVs has significantly contributed to this growth.

The company also noted an increase in its domestic market share, which rose by 2.2 percentage points to 40.8 per cent. Recent capacity enhancements have allowed Maruti Suzuki to meet the robust demand for its vehicles. Despite improved production capabilities, demand continues to exceed supply, resulting in a low network inventory of approximately 17 days and pending bookings of around 200,000 units at the end of the quarter.

Export Performance Amid Geopolitical Challenges

In the export sector, Maruti Suzuki faced challenges due to the geopolitical landscape but still managed to achieve sales of 1,08,119 units in Q2 FY 2026-27. This figure is slightly lower than the 1,10,487 units sold during the same quarter in FY25-26. The company’s ability to navigate these challenges while maintaining a strong export volume reflects its resilience in a fluctuating market.

Overall, Maruti Suzuki’s performance in Q2FY27 highlights both the challenges posed by external factors and the company’s capacity to adapt and grow in a competitive automotive landscape. The significant increase in sales volumes and revenue, despite the decline in profit, underscores the ongoing demand for its products and the effectiveness of its market strategies.

As the company continues to address the impact of rising input costs and geopolitical tensions, its focus on expanding production capacity and enhancing product offerings will be crucial in sustaining growth in the coming quarters.

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