Maruti Suzuki India shares increased on Wednesday following the company’s quarterly results for March, indicating a generally positive response from brokerages despite some challenges to profitability. The stock closed at ₹13,257, up 3 percent, after reaching an intraday high of ₹13,548, compared to the previous close of ₹12,892.
For the quarter ending March 2026, Maruti Suzuki reported a standalone net profit of ₹3,590.5 crore, reflecting a 7 percent decline year-on-year from ₹3,857.3 crore in the same period last year. While the company’s earnings softened, positive demand trends and future guidance helped bolster investor confidence.
Global brokerage Morgan Stanley maintained an overweight rating on the stock, setting a target price of ₹17,895. It noted that exports fueled the company’s performance for FY26. The management’s guidance of approximately 10 percent domestic volume growth for FY27 was about 200 basis points above the brokerage’s estimates, although it cautioned that margins may hit a low point in Q1 before showing improvement.
Investec also kept a buy rating but slightly reduced its target price from ₹15,465 to ₹15,360. This adjustment was attributed to minor downward revisions in earnings estimates. The brokerage lowered EPS forecasts for FY27-28E by 1–3 percent due to margin pressures but stated that Maruti Suzuki remained operationally well-positioned. It projected a 17 percent CAGR in EBIT and a 13 percent CAGR in PAT over FY26-28, driven by new model launches and export-centric vehicles such as the e-Vitara.
Among domestic brokerages, JM Financial reported that Maruti Suzuki’s EBITDA and EBIT margins were 11.7 percent and 8.4 percent, respectively, for Q4FY26, suggesting a mixed quarter-on-quarter performance. These margins benefited from reduced employee costs, lower discounts, favorable foreign exchange movements, and operational advantages from inventory buildup, though they faced offsetting pressures from higher commodity costs and model launch expenses.
The brokerage highlighted strong domestic demand, particularly in the entry-level market, noting a low dealer inventory of 12 days and a robust order book of around 190,000 vehicles. JM Financial has revised its volume growth assumptions upwards and slightly increased its earnings estimates, maintaining a buy rating with a target price of ₹16,570.
Motilal Oswal indicated that a reduction in GST rates had revitalized demand for small cars, making them more affordable for price-sensitive consumers. The brokerage estimated that Maruti Suzuki could achieve a 10 percent domestic volume growth in FY27E, supported by a strong order backlog and a solid pipeline of new products. It reiterated a buy rating with a target price of ₹15,529, valuing the company at 25 times FY28E EPS, and projected a 16 percent earnings CAGR from FY26-28.
In summary, while immediate margin pressures are present, brokerages maintain a positive outlook on Maruti Suzuki’s growth trajectory, supported by strong demand, export performance, and operational efficiencies.
Published on April 29, 2026.
