Maruti Suzuki pins festive hopes on new launches, rural recovery amid tepid start to FY26

Maruti Suzuki shares have risen over 16 percent since the beginning of the year.

After a sluggish start to the fiscal year, Maruti Suzuki is betting on a stronger second half, supported by new launches and a revival in rural demand. The company remains cautiously optimistic about industry growth and its ability to outperform peers despite muted volumes in the first quarter.

Speaking during the post-earnings call, Maruti Suzuki’s management acknowledged that Q1 fell short of expectations, echoing broader concerns across the auto industry. “Q1 has not been up to the mark, but there are positives building up in Q2,” the company said, pointing to a better monsoon and steady rural sentiment.

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The festive season, which spans the second and third quarters, is expected to be a key demand trigger. “We are looking at Q2 and the festive season with optimism,” the management noted, adding that the company is hopeful of a stronger showing compared to the performance so far this year.

Maruti Suzuki has lined up two new SUV launches for the current financial year—one of them electric—which the company believes will bolster its market position. These launches are expected to play a pivotal role in meeting the company’s guidance of outpacing industry growth, pegged at around 2 to 3 percent.

SIAM, the industry body, had initially projected growth of 1 to 2 percent for FY26, but a weak Q1 has cast some doubt on that outlook. Still, Maruti’s management is confident that upcoming product activity and a better festive season could help the sector regain momentum.

During the quarter, Maruti Suzuki reported a 2 percent rise in net profit at Rs 3,712 crore for the quarter ended June 30, 2025. The carmaker's revenue rose 8 percent to Rs 38,414 crore in Q1 FY26 as against Rs 35,531 crore a year ago. Non-operating income, or other income, nearly doubled.

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Maruti Suzuki's June quarter results have beaten estimates as a Moneycontrol poll of seven brokerage firms pegged the WagonR maker's revenue at Rs 36,570 crore and net profit at Rs 3,181 crore.

In the June quarter, Maruti Suzuki's earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 11 percent at Rs 3,995 crore from Rs 4,502 crore in the same quarter last year. The operating margin dropped by 227 basis points to 10.40 percent in Q1 FY26 from 12.67 percent in Q1 FY25.

Maruti Suzuki shares have risen over 16 percent since the beginning of the year.

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