Maruti Suzuki Reports 7.95% Profit Growth in Q2 FY26 Driven by Strong Exports, Revenue Up 13%

Maruti Suzuki has reported a robust financial performance for the second quarter of fiscal year 2025-26. The company's consolidated profit rose by 7.95% year-on-year to Rs 3,349 crore, compared to Rs 3,102.5 crore in the same period last year. Consolidated revenue also saw significant growth, increasing by 13% to Rs 42,344.2 crore from Rs 37,449.2 crore in Q2 FY25.

However, domestic wholesales declined by 5.1% year-on-year to 4,40,387 units. This slowdown is attributed to customers delaying purchases in anticipation of potential price reductions following a Goods and Services Tax (GST) implementation, expected around September 22nd. In a contrasting trend, Maruti Suzuki's exports grew substantially by 42.2% year-on-year, reaching 1,10,487 units, marking a new quarterly record for the company. The overall sales volume for the quarter increased by 1.7% to 5,50,874 units.

Impact: This news is moderately positive for the Indian stock market. The strong profit and revenue growth, coupled with record exports, indicate solid underlying business performance. Investors will be watching how the company manages domestic sales pressures related to tax expectations. The robust export figures are a key positive driver. Impact Rating: 7/10

Difficult terms: * Consolidated Profit: This is the total profit of a parent company and all its subsidiaries combined, after accounting for all inter-company transactions. * Consolidated Revenue: This represents the total income earned by a parent company and all its subsidiaries. * YoY (Year-on-Year): A comparison of a metric's value in a given period against its value in the same period of the previous year. * Wholesales: The number of vehicles sold by the manufacturer to its authorized dealers. * GST (Goods and Services Tax): A comprehensive indirect tax levied on the supply of goods and services in India. * Exports: Goods or services sold from one country to another country.