Maruti profit falls 6.45% despite 28.21% revenue growth
Higher commodity, manufacturing and administrative costs, along with a 5.14-point rise in the tax rate, offset stronger operating revenue.
Filed 28 Apr 2026, 14:41 IST · Maruti Suzuki India Ltd (MARUTI)
Key takeaways
- Consolidated net profit fell 6.45% year on year to Rs 3,659.0 cr despite revenue growth of 28.21%.
- Operating margin narrowed 0.10 percentage points year on year as expenses grew 28.35%, faster than revenue at 28.21%.
- The stock fell 2.50% on results day, a larger move than its 1.27% median absolute reaction across the last eight results.
Price around the results
Revenue growth did not reach net profit
Consolidated revenue rose 28.21% year on year and 5.13% sequentially, but net profit fell 6.45% year on year and 5.67% from Q3FY26. Profit before tax was almost flat year on year, rising just 0.01%, as other income fell 63.29%. Other income still accounted for 11.82% of pre-tax profit, making the earnings mix relevant to the reported decline.
Commodity and new-model costs held back margins
Year-on-year expense growth of 28.35% exceeded revenue growth of 28.21%, narrowing operating margin by 0.10 percentage points. Management said adverse commodity prices hurt the Q4FY26 margin compared with Q4FY25. Sequentially, revenue grew faster than expenses, with growth of 5.13% versus 4.45%, lifting margin by 0.57 percentage points; management attributed the remaining pressure versus Q3FY26 to new-model, manufacturing and administrative expenses.
Margin recovered from Q3 but remains below peers
The 11.74% operating margin improved from 11.17% in Q3FY26, but remained below the 12.01% recorded in Q2FY26 and the 13.10% in Q3FY25. Maruti's margin was 3.07 percentage points below the 14.81% median among 93 Consumer Discretionary peers that had reported the quarter. The tax rate rose 5.14 percentage points year on year to 25.61%, also weighing on net profit.
Results-day fall was outside Maruti's usual range
The stock fell 2.50% on the results date, while its median absolute move after the last eight results was 1.27%; those reactions were evenly split between four rises and four falls. It recovered 3.78% by day five, before standing 1.66% lower at day 15 and 0.94% lower at day 30.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹52,463 cr | ₹49,904 cr | +5.13% | +28.21% |
| Other income | ₹581 cr | ₹1,141 cr | -49.04% | -63.29% |
| Expenses | ₹46,304 cr | ₹44,331 cr | +4.45% | +28.35% |
| Operating profit | ₹6,158 cr | ₹5,573 cr | +10.50% | +27.13% |
| Operating margin (%) | 11.74% | 11.17% | — | — |
| Interest | ₹73 cr | ₹62 cr | +18.31% | +53.36% |
| Depreciation | ₹1,748 cr | ₹1,735 cr | +0.78% | +19.59% |
| Profit before tax | ₹4,918 cr | ₹4,917 cr | +0.02% | +0.01% |
| Tax | ₹1,259 cr | ₹1,038 cr | +21.31% | +25.11% |
| Net profit | ₹3,659 cr | ₹3,879 cr | -5.67% | -6.45% |
| EPS (₹) | ₹116.38 | ₹123.38 | -5.67% | -6.45% |
Operating margin of 11.74% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.50% | -2.09% |
| Next session | +0.26% | — |
| 5 sessions | +3.78% | +2.79% |
| 15 sessions | -1.66% | — |
| 30 sessions | -0.94% | — |
Volume on the results session was 1.49× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Problems & risks
- Adverse commodity prices negatively affected margin in Q4 FY26 compared with Q4 FY25.
- Lower non-operating income negatively affected margin in Q4 FY26 compared with Q4 FY25.
- New model expenses negatively affected margin in Q4 FY26 compared with Q3 FY26.
- Higher manufacturing and administrative expenses negatively affected margin in Q4 FY26 compared with Q3 FY26.
What to watch
- Whether operating margin holds above the Q4FY26 level of 11.74%.
- Whether expense growth remains below revenue growth, after Q4FY26 growth of 4.45% versus 5.13% sequentially.
- Whether other income remains near 11.82% of pre-tax profit.