Maruti Suzuki records record sales but sees margin slip in Q2 FY27

Maruti Suzuki India posted a record 696,654 cars sold in the September quarter, up 26.5% year‑on‑year, while its standalone EBITDA margin fell to 8.9%, a 308‑basis‑point contraction. Revenue rose 26% to ₹53,340 crore but higher commodity costs ate into profit. Domestic passenger‑vehicle demand was boosted by GST‑driven affordability and festive buying, lifting overall volumes 33.6% and utility‑vehicle sales 52%. Dealer inventory held at a tight 17 days, helping market share climb 220 basis points to 40.8%. The company added nearly 500,000 units of annual capacity through a second plant at Kharkhoda and a fourth production line at Hansalpur in Gujarat. Management is targeting at least 10% domestic‑volume growth in the second half of FY27 and expects total volumes, including exports, to rise 7‑10% with full‑year growth in the mid‑teens. Pending customer orders grew from 200,000 at September end to about 270,000 by Dussehra, signalling strong demand. Exports slipped 2% to 108,119 units, hurt by logistics challenges linked to the West Asia war, regulatory issues for e‑Vitara shipments to Europe and higher tariffs in Mexico. Steel, copper, currency moves and geopolitical disruptions remain key cost risks. Nomura analysts warned of demand risks in FY28 for hatchbacks from higher interest rates, inflation, weak monsoons and oil prices. Maruti’s share price sits roughly 5% above its 52‑week low of ₹10,985, making margin recovery a critical factor for future stock momentum.

Context

Maruti Suzuki is India’s largest car maker and benefits when GST cuts make vehicles cheaper. Higher commodity prices often squeeze margins for auto makers, so volume growth does not always translate into higher profit.