Maruti Suzuki Sales Surge 36%, Profit Dips Amid Rising Costs

Maruti Suzuki initiated FY27 with robust financial performance in the June quarter, announcing a 36% year-on-year increase in net sales, reaching Rs 49,959.1 crore. This revenue surge was primarily fueled by higher vehicle sales volumes and an improved product mix, further supported by enhanced production capacity. The Kharkhoda plant's contribution was instrumental in meeting demand more effectively.

However, profitability faced headwinds, with net profit declining to Rs 3,352.1 crore compared to the previous year. Maruti Suzuki cited increased raw material expenses and ongoing supply chain interruptions as key factors impacting the bottom line. Total sales volume demonstrated substantial growth, climbing 29.3% to 682,724 units, with notable upticks in domestic small car and SUV sales, alongside a 28.6% rise in exports.

The company also saw a significant improvement in its domestic market share, which expanded by 2.3 percentage points to 41.2%. This gain was facilitated by better supply availability, partly attributed to the operationalization of the new Kharkhoda manufacturing facility. Maruti Suzuki has also approved an initial investment of Rs 561 crore for four compressed bio-gas projects, with further expansion contingent on evaluating the first phase's performance.