Maruti Suzuki profit falls 27%, but brokers keep positive stance on shares

what happened

Shares of Maruti Suzuki India opened higher on Wednesday, October 28, after the automaker reported its September-quarter numbers. Per TradingView, analysts stay upbeat, pointing to a solid growth picture for the second half and room for margin recovery. HSBC, Nomura and CLSA kept positive ratings, with target prices between 13,046 and 14,537 rupees.

Standalone net profit slid 26.9% year on year to 2,415 crore rupees from 3,303 crore. Revenue climbed 26% to 53,340 crore, while EBITDA fell 6.3% to 4,763 crore and the margin narrowed to about 8.9% from 12%. Net profit missed the CNBC-TV18 poll estimate of 2,655 crore, whereas EBITDA beat the 4,445 crore forecast.

On the earnings call, management raised its annual growth expectation to roughly 15% from about 10%. It expects total volumes to rise 7-10% in the second half, with domestic sales up at least 10%. Management also warned that steel and copper costs could rise in the December quarter.

why it matters

The weaker profit is the main negative, but volume guidance and margin prospects give brokers reasons to stay positive. Commodity costs are the swing factor: HSBC sees falling input prices as the key trigger, while Nomura flags a possible slowdown in FY28.

market impact

Maruti Suzuki shares: weaker profit weighs, while volume and margin outlook supports the stock

• ↔Maruti Suzuki shares mixed — lower profit offset by upbeat volume and margin commentary

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