India’s largest carmaker, Maruti Suzuki, has reported steady financial performance for the fourth quarter of FY26, with revenue surpassing expectations even as margins came under slight pressure.
The company posted revenue of ₹524.5 billion, marking a 28% rise year-on-year, supported by stronger pricing and a favourable product mix. However, operating margins fell marginally short of estimates, reflecting ongoing cost pressures. Net profit declined 7% compared to a year earlier.
Despite this, underlying demand remains robust. Domestic sales volumes grew modestly, while retail demand rose by 13%, indicating healthy consumer traction. Notably, first-time buyers accounted for over half of total customers during the quarter, highlighting sustained demand in the entry-level segment.
A strong order backlog exceeding 190,000 units and low dealer inventory levels suggest continued momentum in the near term. Smaller cars, which form a significant portion of pending bookings, have particularly benefited from recent tax reductions, boosting affordability and demand.
Looking ahead, the company expects domestic volumes to grow by around 10% in FY27. Planned capacity expansion of approximately 500,000 units is also expected to support future growth.
Exports, which surged by 61% during the quarter, may face some headwinds due to geopolitical uncertainties. However, the company’s strategy to diversify into new international markets is likely to help sustain longer-term expansion. It has outlined an ambitious target of reaching 800,000 export units annually by 2030.
While rising commodity costs could weigh on margins in the near term, analysts believe strong demand and operational efficiencies may help offset some of the impact.
Overall, Maruti Suzuki’s outlook remains positive, with expectations of steady growth in volumes, revenues, and earnings over the next few years, underpinned by resilient domestic demand and expanding global reach.
