Maruti Suzuki Q4FY26: Profit down, revenue up 28%

Why Maruti Suzuki is back in focus

Maruti Suzuki India Limited (MSIL) was back on investors’ radar after a mix of developments: a fresh round of vehicle price hikes, a sharp year-on-year revenue jump in the March quarter, and a series of analyst target revisions. The company, India’s largest passenger carmaker, said prices will rise by up to ₹30,000 from June 2026 across several models. It linked the move to rising input costs, inflationary pressures, and an adverse cost environment.

At the same time, MSIL’s Q4FY26 earnings showed that demand and pricing supported top-line growth, while profitability softened on a year-on-year basis. Brokerages also flagged market share pressures, even as management commentary and channel data pointed to lean inventories and a large order book.

Price hike from June 2026 and what it signals

Maruti Suzuki said it has been absorbing a large part of rising costs internally, but continued increases in raw material prices, logistics expenses, and operational costs made another revision necessary. The company’s announcement points to cost pressures still present across the auto value chain.

The move also reflects a wider trend in the Indian automobile industry, where several manufacturers have already raised prices this year amid persistent cost pressures and global economic uncertainty. For buyers, the hike can change near-term purchase decisions, especially in price-sensitive segments where small changes in on-road prices matter.

Q4FY26 results: revenue growth, profit decline

MSIL reported a 7% year-on-year decline in standalone profit for the March quarter at ₹3,591 crore, compared with ₹3,857 crore in the same period last year. Despite the dip in profit, revenue from operations rose 28% to ₹52,449 crore from ₹40,910 crore.

The topline growth came alongside a record quarterly volume print. Maruti Suzuki posted its highest-ever quarterly sales at 6,76,209 units, marking an 11.8% increase from Q4 FY2024-25. The numbers underline that volumes and pricing supported revenue expansion, even as profitability remained a key point of scrutiny.

Stock reaction: gains after the results

Shares of Maruti Suzuki rallied over 4% to the day’s high of ₹13,441 on the BSE on Wednesday after the results. The price action suggested the market was willing to look through the year-on-year profit decline, focusing instead on strong revenue growth, volumes, and the broader demand outlook.

Separate brokerage notes referenced other price points as well. One report cited a current market price of ₹14,750 while discussing Nomura’s target, and another Jefferies note referenced the stock trading at ₹12,521 at the time of that report.

Full-year FY2025-26: record net profit

For the full financial year FY2025-26, MSIL reported its highest-ever net profit of ₹14,445 crore, compared with ₹14,298 crore in the previous year. The full-year profit increase was modest, but it still marked a new high.

The data adds context to the quarterly profit decline, showing that full-year profitability held up even as quarterly pressures appeared.

Broker view: Jefferies Hold at ₹13,800, market share a concern

Jefferies maintained a Hold rating on Maruti Suzuki with a target price of ₹13,800, indicating 7% upside in that note. The brokerage flagged that Maruti Suzuki’s market share has slipped to a 13-year low amid a shift in demand toward SUVs.

Jefferies said fourth-quarter results were broadly in line with expectations, while domestic volume growth guidance of 10% for FY27 was positive. It also noted channel inventory remains lean at around 12 days, and said the recent GST rate cut has helped revive demand for small cars by improving affordability for price-sensitive buyers.

The brokerage also highlighted Maruti’s order backlog of 190,000 units. It said management remains confident of delivering 10% domestic volume growth in FY27E, supported by pending demand and a healthy pipeline of new launches, which could support market share recovery.

Target revisions and fair value changes: mixed signals

A set of analyst fair value estimates moved in both directions in the provided updates. Analysts trimmed their 12-month fair value estimate for Maruti Suzuki India from ₹16,589.75 to ₹15,840.13, citing updated assumptions for revenue growth, profit margins, the discount rate and future P/E expectations. The same set of updates also said analysts trimmed their price target by about ₹155.

Another narrative update stated that analysts have raised their fair value estimate to ₹16,046.58, an increase of ₹99.00. These contrasting revisions highlight how sensitive valuation outcomes can be to inputs such as discount rate, margin assumptions and terminal multiples.

Another Jefferies note: Buy at ₹14,750 target

In a separate Jefferies note, the brokerage maintained a buy rating on Maruti Suzuki and raised the target price to ₹14,750 from ₹13,600. The report said the stock was trading at ₹12,521 at the time, implying potential upside of over 17%.

That note also said EBITDA declined 11% year-on-year in the quarter it analysed, even as average selling price improved, but margins declined. It added that Jefferies revised its FY25-28 industry volume CAGR estimate downward from 8% to 6% and continued to flag the fall in Maruti’s passenger vehicle market share.

Nomura stays Neutral and flags export-led EV strategy

Nomura raised its target price on Maruti Suzuki to ₹13,113 from ₹12,886 and maintained a Neutral rating. Despite the revision, the new target implied an 11% downside from the cited market price of ₹14,750 in that note.

Nomura also noted the start of production of Maruti’s first all-electric SUV, the e-Vitara, at its Hansalpur facility in Gujarat, positioning the plant as a global manufacturing hub with exports planned worldwide and an initial focus on European markets. The note flagged competition in Europe from Chinese and Korean manufacturers such as BYD, Hyundai, and Kia.

Key facts at a glance

Market impact and what investors are tracking

The immediate market impact was visible in the over 4% rally to ₹13,441 after the Q4 print, even though profit declined year-on-year. Investors and analysts are tracking three linked themes: pricing actions to manage costs, the pace of volume growth in a shifting mix that is moving toward SUVs, and whether backlog and lean dealer inventory translate into sustained dispatch momentum.

The stock’s valuation framing also varied across updates. One snapshot referenced “15.0% undervalued” alongside scores for valuation, future growth and past performance, while brokerage notes highlighted changing discount rates, P/E expectations and EPS estimate cuts (Jefferies cut FY27-28E EPS estimates by 9% in one note).

Conclusion

Maruti Suzuki’s June 2026 price hike and Q4FY26 results underline a familiar trade-off in autos: protecting margins in a cost-heavy environment while defending volumes and market share. Near-term attention is likely to remain on management’s FY27 domestic volume growth guidance of 10%, the 190,000-unit order backlog, and how the company navigates demand shifts and competitive intensity, including in EV exports from Gujarat.