Maruti Suzuki Q2 profit tanks 26% to ₹2,466cr
What's the story
Maruti Suzuki India has reported a 26.4% year-on-year decline in its consolidated net profit for the second fiscal quarter. The company's net profit stood at ₹2,466.1 crore, even as revenue from operations increased by 26% to ₹53,355.5 crore. Despite achieving record quarterly sales volumes during this period, profitability was impacted by rising commodity costs due to the West Asia conflict and mark-to-market losses on invested surplus.
Profit drop
Operating profit falls 17.1% YoY
The company's operating profit (EBIT) for Q2 FY27 fell 17.1% YoY to ₹2,803.7 crore, down from ₹3,382 crore in the same quarter last year.
However, on a sequential basis, operating profit rose 10.8% from the April-June quarter.
The decline in operating profit was mainly attributed to higher commodity costs due to the West Asia conflict.
Sales surge
Record quarterly sales volume of nearly 7 lakh vehicles
Maruti Suzuki achieved its highest-ever quarterly sales volume of 6,96,654 vehicles in Q2 FY27, a 26.5% rise from the year-ago period.
The domestic passenger vehicle market witnessed broad-based growth with small car sales rising by 35.9% and SUVs surging by an impressive 68.2%.
The company's recently launched SUVs received a strong market response, contributing to this robust growth.
Maruti Suzuki's domestic passenger vehicle market share increased by 2.2% points to 40.8% during the quarter.
Global impact
Exports fell marginally by 2.1% YoY
In international markets, Maruti Suzuki's exports fell marginally to 1,08,119 vehicles from 1,10,487 units in the same quarter last year amid challenging geopolitical conditions.
Ahead of its quarterly results announcement on Tuesday, shares of Maruti Suzuki India rose by 1.6% to ₹11,450.
During H1 FY27, Maruti Suzuki clocked sales of 13,79,378 vehicles, surging 27.9% year-on-year. The volume comprised 11,46,523 units sold domestically and 2,32,855 units in overseas shipments.