Maruti FY26 Results – Strong Sales, Flat Profit, 1.9 Lakh Orders Pending

Maruti Suzuki has announced its financial results for FY26, reporting strong growth in revenue and sales volumes. However, profit growth remained limited, even as the company flagged supply-side constraints and regulatory uncertainties as key factors to watch going forward.

Strong Sales Growth Driven By Demand Surge

Maruti recorded total sales of 2,422,713 units in FY26, up from 2,234,266 units in the previous year. Domestic sales stood at 1,974,939 units, while exports rose sharply to 447,774 units. The company attributed the strong growth to improved demand in the second half of the year, supported by GST reductions.

Maruti also retained its position as India’s top passenger vehicle exporter for the fifth consecutive year, contributing nearly 49% of the country’s total PV exports. Exports were further boosted by shipments of the made-in-India e Vitara, which is now being exported to 44 global markets.

Supply Constraints Despite Strong Demand

Even as demand remained strong, Maruti highlighted production limitations as a key constraint. The company ended the financial year with around 190,000 pending customer orders, including approximately 130,000 orders in the small car segment. Dealer inventory also remained low at around 12 days, indicating that supply has not fully kept pace with demand. This suggests that Maruti’s growth could have been higher if production capacity was not a limiting factor.

Revenue Up, Profit Growth Remains Limited

Maruti reported net sales of Rs 1,743,695 million in FY26, marking a growth of around 20% over the previous year. However, net profit stood at Rs 144,454 million, only marginally higher than Rs 142,976 million reported in FY25.

The relatively flat profit growth, despite strong revenue expansion, reflects higher cost absorption during the year. Data from the company’s investor presentation indicates a decline in margins, with EBITDA margin softening compared to the previous year, impacted by factors such as commodity costs and lower non-operating income .

Q4 Performance And Profit Dip

In the January–March 2026 quarter, Maruti recorded its highest-ever quarterly sales of 676,209 units. Net sales for the quarter stood at Rs 500,787 million. However, net profit declined by 6.9% YoY to Rs 35,905 million, primarily due to mark-to-market impacts, even as operating performance remained strong .

Dividend Increased – The company has recommended a final dividend of Rs 140 per share for FY26, up from Rs 135 per share last year, marking its highest-ever dividend payout.

Scrappage Policy Uncertainty Remains – Maruti also highlighted uncertainty around the implementation of End-of-Life Vehicle (ELV) rules, which came into effect from April 2025. The company stated that it is currently unable to quantify the financial impact due to lack of clarity on pricing mechanisms and execution framework. This remains a key regulatory factor that could influence cost structures for automakers in the future.

SMG Merger Completed – The amalgamation of Suzuki Motor Gujarat Pvt Ltd with Maruti Suzuki India Ltd was completed during the year, effective from December 1, 2025. Financials have been restated accordingly from April 1, 2025.

Strong Demand Meets Supply Bottleneck – While Maruti has delivered strong revenue and volume growth in FY26, capacity constraints, cost pressures and regulatory changes are likely to shape its near-term performance. With demand remaining strong and supply yet to fully catch up, production expansion and policy clarity will be critical factors in the coming quarters.