Maruti Suzuki Q1 net profit down 11% to ₹3,352 crore on high material cost
Maruti Suzuki reported an 11% decline in net profit for Q1 FY 2026-27, citing rising material costs despite a significant increase in sales volume. The company is expanding its market share and investing in Compressed Biogas projects to diversify its energy portfolio.
Why it matters
As India's largest automaker, Maruti Suzuki's financial performance serves as a key indicator for the health of the Indian automotive sector and broader consumer demand.
Maruti Suzuki India Ltd., India’s biggest passenger vehicles company, for the period April-June, FY 2026-27 (Q1), reported a 11% fall in net profit to ₹3352 crore as compared to ₹3758 crore in the year-ago period, as high material prices eat into its margin.
During the quarter, the company’s net sales income increased 36% YoY to ₹49959 crore.
Material costs had started to increase in the quarter and were seriously aggravated during the war, as a result of which the net profit was impacted, the company said.
The company’s total sales volume during the quarter grew by 29.3% YoY. Domestic small car sales grew by 34.1%, SUVs by 44.6%, and exports by 28.6%.
Domestic market share of the company increased by 2.3% points to 41.2%. Higher sales were possible because the Company commissioned its second plant in Kharkhoda.
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