Target: ₹16,180
CMP: ₹15,646.15
Maruti Suzuki reported strong Q2-FY26 results, outperforming our estimates by 7.9/11.0/0.7 per cent evenue/EBITDA/PAT levels, respectively. Standalone revenue grew 13.2 per cent y-o-y/9.6 per cent q-o-q to ₹42,100.80 crore, driven largely by a 10.9 per cent y-o-y/5.0 per cent q-o-q increase in ASPs, which came in 7.6 per cent higher than our estimates.
Wholesale volumes rose 1.7 per cent y-o-y, supported by robust export growth of 42.2 per cent y-o-y, offsetting a 5 per cent decline in domestic sales. EBITDA margin contracted by 134 bps y-o-y to 10.5 per cent, as cost-saving measures and higher operating income partially offset pressures from adverse commodity and forex movements, higher marketing spends, and Kharkhoda plant costs.
Absolute EBITDA rose 0.4 per cent y-o-y to ₹4,434.10 crore, outperforming our expectation, driven by higher ASPs and revenue outperformance. Reported PBT was 2.5 per cent lower than our estimates due to lower other income. Net profit rose 7.3 per cent y-o-y but declined 11.3 per cent q-o-q to ₹3,293.10 crore; however, PAT is not comparable y-o-y due to one-off tax provision in the base quarteR.
We reduce our FY26E EPS estimate by 3.2 per cent, mainly due to higher depreciation, but broadly retain our FY27/28 EPS estimates. We expect revenue/EBITDA/PAT CAGR of 12.2/12.3/12.7 per cent, respectively over FY25-28. We believe the positives are priced in to a large extent.
Published on November 3, 2025
