According to the average estimate from four brokerages, revenue growth is expected to be around 7%, while net profits may fall by around 4%.
Brokerages remain divided in their estimates for the country’s largest car seller’s profitability. Motilal Oswal predicts a nearly 10% fall in earnings, while Axis Securities pegs the fall in net profit at 0.8%.
Analysts expect pressure on the company’s margins due to higher marketing expenses and discounts.
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“The Ebitda margin is expected to decline by 44 basis points year on year due to higher marketing and advertisement spending, higher discounts partly offset by operating leverage, and increased sales of CNG vehicles,” Axis Securities analysts wrote in a 9 April note.
The fall in earnings is far from the 47% growth the Delhi-based automaker posted in the first quarter of the financial year, which was led by cost savings and favourable commodity prices. However, the market situation has changed.
In 2025, the company implemented three price hikes totalling more than 4% to offset higher commodity prices.
“While the company continuously strives to optimise costs and minimise the impact on its customers, some portion of the increased cost may need to be passed on to the market,” the company said in its price hike announcement in an exchange filing in March.
In the January-March period, the company sold about 6.05 lakh vehicles, which was 5% higher than the sales recorded in the previous year. However, domestic sales in March witnessed a marginal decline as the demand for car sales slowed.
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The company recorded a 3% growth in domestic sales to 19.01 lakh for the financial year, while the overall car market retail sales grew by about 5%, according to data from the Federation of Automobile Dealers Associations.
Amid this background, Maruti Suzuki’s share price has surged by over 6% this year on the National Stock Exchange (NSE), as against a nearly 3.5% fall in Nifty Auto.
Mint lists three things worth watching out for when the Maruti management announces its results on Friday.
Demand outlook
There are concerns about inventory building up at the dealerships of top car players in the country. As per analyst commentary, the inventory levels at dealers have increased to over 50 days.
Due to the slowdown in car sales, there has also been a buildup at Maruti dealerships.
“Maruti’s stock has risen from 9 days as of 1 January 2025, to around 40-45 days,” analysts at PhillipCapital wrote in a note dated 30 March.
In a media briefing on 1 April, Maruti Suzuki’s management noted the buildup of inventory at the dealerships and said the company slowed its wholesale dispatches to ease pressure on dealers. In March, the company recorded a marginal decline in wholesale domestic sales at 1.6 lakh vehicles due to slower dispatches to dealers.
Investors will look forward to management’s commentary on the demand outlook for the current financial year as the government’s income tax relief and RBI’s interest rate cuts start showing their effects.
However, it remains to be seen how the company’s multiple price hikes this year affect its overall sales.
Trump’s shadow over export growth?
The Donald Trump administration’s announcement of 25% tariffs has shaken players globally.
Although Maruti Suzuki doesn’t have much direct exposure to the country, questions remain about how competition in other markets can evolve as automakers in countries like China, South Korea, Europe, and Japan rethink their strategies.
With the company looking to make India its export base, the commentary on the impact of Trump’s tariffs on global automobile markets will be closely watched.
Also read: Renault India aims to triple market share with five new cars, expanded network
“Suzuki’s scale in India is our strength and we will fully leverage this advantage to supply high-quality and appealing products to Japan, Europe, Central and South Americas and the Middle Eastern and Asian countries,” Toshihiro Suzuki, representative director and president, Suzuki Motor Corp., had told reporters in January.
Exports were a strong growth driver for the company in the financial year 2025, with the company recording a 17% growth to reach 3.32 lakh units.
Spotlight on EV
With the anticipated launch of Maruti Suzuki’s first pure EV model, the management’s commentary on the launch date and bookings will be closely watched.
At the Bharat Mobility Global Expo, the company announced the launch of e-Vitara, which is expected to hit the markets soon.
However, some analysts have expressed scepticism about the growth prospects for the new EV.
“Despite being a quality product, the e-Vitara has not generated much enthusiasm, lacking a distinctive appeal. The EV model is available for display in showrooms, but bookings have been underwhelming, with deliveries anticipated to commence in May or June,” Amit Hiranandani of PhillipCapital wrote in a note on 30 March.
