Maruti Suzuki India reported a 7.3% year-on-year (YoY) rise in net profit for the July–September quarter of FY26, though rising advertising expenses, commodity volatility, and the recent GST revision on cars tempered overall performance.
The country’s largest carmaker posted a net profit of ₹3,293 crore in Q2 FY26, compared to ₹3,069 crore in the corresponding quarter last year. Revenue from operations rose 12.7% to ₹40,135 crore from ₹35,589 crore a year earlier, while operating profit jumped 21.7% YoY to ₹1,964 crore.
However, domestic wholesales fell 5.1% YoY to 4,40,387 units, as customers postponed purchases in anticipation of lower prices following the Centre’s GST restructuring. Under the revised tax framework, GST on small cars has been reduced to 18% from 28%, while the cess on larger cars has been removed, keeping the effective rate at around 40%.
Maruti noted that the quarter’s performance was further affected by higher sales promotion spends, limited-period price cuts on select models, and a notable rise in advertising expenditure. Volatile commodity prices and unfavourable exchange rates also pressured margins.
Despite softer domestic sentiment, exports surged 42.2% YoY to 1,10,487 units, marking the company’s highest-ever quarterly export performance.
For the first half of FY26, Maruti Suzuki sold 10.78 lakh vehicles, including 8.71 lakh units in the domestic market and an all-time-high 2.07 lakh exports – a 1.4% increase in total volumes, driven primarily by robust overseas demand.
The company also achieved its highest-ever half-yearly net sales of ₹76,760 crore in H1 FY26, up from ₹69,464 crore in H1 FY25. Net profit for the half-year stood at ₹7,004 crore, compared to ₹6,719 crore in the same period last year.
While export growth provided a cushion, Maruti Suzuki’s near-term outlook will depend on how quickly domestic demand normalises following the GST transition, and how effectively the company manages rising marketing and promotional spends amid a competitive passenger vehicle market.
