Maruti Suzuki Q1 result: Revenue to quadruple YoY on low base, but profit may fall sequentially

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26 Aug, 2025 12:21

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Auto major Maruti Suzuki India will announce its June quarter numbers today, July 28. The carmaker is expected to turn profitable on a year-on-year basis given the low base of Q1 FY21 which was marred by lockdowns in the wake of COVID-19.

Brokerages expect the company to report a more than 330 percent YoY growth in revenue. Maruti sold 3.53 lakh units in the June quarter, up 362 percent compared to the corresponding quarter of the previous fiscal, but a 28 percent skid sequentially.

"We expect a significant increase in revenues on YoY basis in Q1 FY22 driven by low base effect due to the complete lockdown in India in Q1FY21," said Kotak Institutional Equities who expects the carmaker to report a profit of Rs 515.3 crore and EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 860.5 crore, on revenue growth of 332 percent YoY.

The company had reported a loss of Rs 249.4 crore in Q1 FY21, EBIDTA loss of Rs 863.4 crore and revenue at Rs 4,106.5 crore.

KRChoksey Research expects the average selling price of cars to rise by 3-4 percent YoY due to a rise in product prices, better product mix and lower discounts offered during the quarter. The pressure may mount on margins due to rising inflation trends in the input costs, according to the brokerage.

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Kotak estimates EBITDA margin to decline by 345 bps QoQ in Q1FY22 led by negative operating leverage. The year-on-year margin could expand 2,587 bps, said the brokerage.

Key things to watch out for would be demand dynamics for passenger vehicle (PV), both domestic and exports; product plans for electric vehicle (EV) segment and new model launches; inventory channel status; cost-cutting initiatives; market response to BS-VI compliant vehicles, said KRChoksey.

In the last 1-year, shares of Maruti Suzuki India gained about 20 percent, however, on a year-to-date basis, the stock has fallen 5.4 percent.