The country’s largest carmaker Maruti Suzuki Friday missed street estimates but posted 7% increase in standalone net profit at Rs 3,293.1 crore for the second quarter ended Sep 30, 2025 on back of strong exports.
The company had reported net profit of Rs 3,069.2 crore in the corresponding period of the last financial year. Brokerage firm Motilal Oswal had expected the company to report 8% increase in net profit in the period under consideration.
Net sales last quarter went up by 12.7% to a record Rs 40,135.9 crore as against Rs 35,589.1 crore in the year-ago period. Total expenses in the quarter under review grew 15% to Rs 38,762.9 crore compared to Rs 33,577.3 crore in Q2FY25.
"Domestic wholesales declined 5.1% to 4,40,387 units in the quarter due to customers deferring buying because of expectation of Goods and Services Tax (GST) led price reduction from 22nd September. Maruti Suzuki Chairman R C Bhargava, said, “The whole industry is optimistic about the future. We have seen record retails during the festive season (which started in the last week of Q2). We expect industry sales to be substantially better in the second half of the year. Industry should grow by around 6% in H2.”
Bhargava said the tax cuts have brought in a lot of customers to the market who earlier could not afford to buy a vehicle. “The GST cut has proved wrong the perception that the market has moved up. We are seeing a lot of people wanting to buy small cars”, he informed.
In October, Maruti Suzuki saw retail sales of small car (sub 4 metres vehicles in the 18% GST category) grow by 30%. Those of bigger vehicles (taxed at 40%) went up by 4-5 %. Overall, the company saw retail sales of vehicles grow by 20%.
The company saw the share of mini cars - Alto K10, Spresso, WagonR and Celerio - in total sales rise to 20.5% post the GST cut, compared to 16.7% in prior to the recast in April 1-Sep 21 period.
Demand traction is particularly robust in rural markets, the company said. While bookings grew by 50% post GST cut in the top 100 cities, the rate was even higher beyond at 65%, Bhargava said. Maruti Suzuki has added 500 new touch points in rural markets in the last 18 months, and would leverage its extensive network to push sales further.
Bhargava said while the pace of growth in car sales will moderate when compared with the festive period, the lower tax rate will help sustain demand, result in ramp-up in production and eventually raise tax collections for the centre. Maruti Suzuki will finalise specifics of investing in and commissioning a fifth manufacturing facility in the country next fiscal, he informed. Given the traction being witnessed in the small car market, the company said it will also re-examine mid-term (till FY31 growth targets in India.
Last quarter, Maruti Suzuki saw exports grow by a robust 42.2% to 1,10,487 units, the highest-ever in any quarter. Total sales last quarter grew 1.7% to 5,50,874 units. The company said it is on-track to export over 400,000 units in the ongoing fiscal.
Shares of Maruti Suzuki closed at Rs 16,191.90 apiece, down by 0.08% on close on the BSE.
The company had reported net profit of Rs 3,069.2 crore in the corresponding period of the last financial year. Brokerage firm Motilal Oswal had expected the company to report 8% increase in net profit in the period under consideration.
Net sales last quarter went up by 12.7% to a record Rs 40,135.9 crore as against Rs 35,589.1 crore in the year-ago period. Total expenses in the quarter under review grew 15% to Rs 38,762.9 crore compared to Rs 33,577.3 crore in Q2FY25.
"Domestic wholesales declined 5.1% to 4,40,387 units in the quarter due to customers deferring buying because of expectation of Goods and Services Tax (GST) led price reduction from 22nd September. Maruti Suzuki Chairman R C Bhargava, said, “The whole industry is optimistic about the future. We have seen record retails during the festive season (which started in the last week of Q2). We expect industry sales to be substantially better in the second half of the year. Industry should grow by around 6% in H2.”
Bhargava said the tax cuts have brought in a lot of customers to the market who earlier could not afford to buy a vehicle. “The GST cut has proved wrong the perception that the market has moved up. We are seeing a lot of people wanting to buy small cars”, he informed.
In October, Maruti Suzuki saw retail sales of small car (sub 4 metres vehicles in the 18% GST category) grow by 30%. Those of bigger vehicles (taxed at 40%) went up by 4-5 %. Overall, the company saw retail sales of vehicles grow by 20%.
The company saw the share of mini cars - Alto K10, Spresso, WagonR and Celerio - in total sales rise to 20.5% post the GST cut, compared to 16.7% in prior to the recast in April 1-Sep 21 period.
Demand traction is particularly robust in rural markets, the company said. While bookings grew by 50% post GST cut in the top 100 cities, the rate was even higher beyond at 65%, Bhargava said. Maruti Suzuki has added 500 new touch points in rural markets in the last 18 months, and would leverage its extensive network to push sales further.
Bhargava said while the pace of growth in car sales will moderate when compared with the festive period, the lower tax rate will help sustain demand, result in ramp-up in production and eventually raise tax collections for the centre. Maruti Suzuki will finalise specifics of investing in and commissioning a fifth manufacturing facility in the country next fiscal, he informed. Given the traction being witnessed in the small car market, the company said it will also re-examine mid-term (till FY31 growth targets in India.
Last quarter, Maruti Suzuki saw exports grow by a robust 42.2% to 1,10,487 units, the highest-ever in any quarter. Total sales last quarter grew 1.7% to 5,50,874 units. The company said it is on-track to export over 400,000 units in the ongoing fiscal.
Shares of Maruti Suzuki closed at Rs 16,191.90 apiece, down by 0.08% on close on the BSE.
