Maruti Suzuki falls 3% post-Q2 results; Jefferies downgrades stock to 'Hold'

The company's total revenue from operations increased 13 percent YoY to Rs 42,101 crore in the July-September quarter of FY26, as compared with Rs 37,203 crore in the year-ago period. The earnings before interest, taxes, depreciation and amortization (EBITDA) increased 0.4 percent YoY to Rs 4,434 crore in Q2 FY26 from Rs 4,417 crore in the year-ago period, with the margin reducing to 10.53 percent during the quarter under review from 11.87 percent in Q2 FY25.

Maruti Suzuki October auto sales:

The country's largest carmaker reported PV wholesales of 1,76,318 units in October 2025, marking a 10.48 percent YoY rise over the 1,59,591 units sold in the year-ago month.

Maruti's Senior Executive Officer for Marketing and Sales, Partho Banerjee, said that Maruti retails sales rose almost 20 percent YoY to 2,42,096 units in October 2025. "We expect our Vahan market share to be around 43.5%," he added.

Here’s what brokerages say:

Jefferies on Maruti Suzuki:

Jefferies downgraded the stock to 'Hold' from its earlier 'Buy' rating on market share concerns. The international brokerage said that MRTI missed second-quarter profit estimates due to higher costs.

However, Jefferies added that it expects small car sales to pick up on India's GST cut boost. It further said that while passenger vehicle demand is positive and exports are doing well, it is concerned about MRTI's PV market share.

Choice Institutional Equities on Maruti Suzuki:

Choice Institutional Equities kept a 'Reduce' call on the stock, but raised its target price to Rs 15,800 apiece. This marks a downside potential of more than 2 percent from the stock's previous closing price.

The brokerage said that it remains "cautiously optimistic" about the company's long-term prospects, driven by upcoming launches, premiumization, and export expansions. "However, margin pressures, slower recovery in the key segment (Mini), and continued market share decline warrant a conservative stance," it added.

HDFC Securities on Maruti Suzuki:

HDFC Securities maintained its ‘Buy’ rating on the stock, with a target price of Rs 18,607 apiece. This implies an upside potential of nearly 15 percent from the stock’s previous closing price of Rs 16,186 apiece.

The domestic brokerage noted that the firm’s Q2 EBITDA margin of 10.5 percent was in line with the Bloomberg consensus estimate of 10.6 percent, but above its estimate of 10.2 percent. “We expect margins to improve going forward as capacity utilization improves on the back of higher PV demand, ramp-up of the Victoris model, and increasing exports. We expect exports to continue to do well over the medium term, benefitting from the company’s efforts over the last few years to improve penetration across markets, including developed markets, and with a wider portfolio and improving mix,” it added.

Motilal Oswal on Maruti Suzuki:

Motilal Oswal maintained its ‘Buy’ rating on the stock, with a target price of Rs 18,712 per share. This implies an upside potential of nearly 16 percent from the stock’s previous closing price. The domestic brokerage said that the firm’s PAT was in-line with its estimate, while EBITDA margin beating expectations due to an improved mix.

“The GST rate cut has helped revive small car demand. This coupled with the launch of the new Victoris, as well as the e-Vitara, is likely to help drive market share gains for MSIL from here on. Further, the company anticipates exceeding its exports growth guidance of 400k units (+20% YoY) in FY26. Overall, we project MSIL to deliver a 17.5% earnings CAGR over FY25-28,” it said.

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