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Maruti Suzuki reported mixed performance in Q1FY27

ICICIdirect Research 03 Aug 2026 DISCLAIMER

News: Maruti Suzuki reported mixed performance in Q1FY27. Sales volume for the quarter stood at 6.82 lakh units, up 29.3% YoY. Total operating income for Q1FY27 came in at ₹ 52,456 crore with ensuing ASPs at ₹7.3 lakh/unit, down 1% QoQ. EBITDA margins for the quarter came in at 8.2%, down 350 bps QoQ lowest ever because of commodity inflation and around 110 bps resulted from a temporary change in supplier settlement cycles. Consequent PAT in Q1FY27 came in at ₹3,352 crore, down ~11% YoY.

View: The company is entering a strong growth phase supported by improving demand and fresh capacity additions. Despite temporary profitability pressure arising from extraordinary commodity and supply-chain disruptions, operational indicators remain exceptionally strong, including robust domestic demand, improving market share, strong exports, low dealer inventory, expanding first-time buyer participation and substantial capacity additions. Demand looks good supported by robust demand across both small cars (+34% YoY) and SUVs (+44.6% YoY), leading to a 230 bps increase in domestic market share to 41.2%. With dealer inventory at just 13 days, a healthy 130,000-unit order book, and 500,000 units of incremental annual capacity being commissioned across Kharkhoda and Gujarat, management reiterated that growth remains supply-constrained rather than demand-constrained. Management continues to characterize FY27 as a supply-constrained year, implying further upside as new facilities stabilize. 

Impact: Neutral

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