Maruti Suzuki Q4 Preview: Revenue Seen Higher, Margins Muted

Maruti Suzuki India Ltd. likely grew in the final quarter of the previous fiscal but at the cost of operational profitability. That sets the stage for a muted fiscal 2026.

Net profit of India’s largest carmaker by volume likely fell 1% year-on-year to Rs 3,857 crore in January-March 2025, on the back of revenue that’s seen 7% higher at Rs 40,929 crore, according to Bloomberg estimates.

While operational profitability—measured as earnings before interest, tax, depreciation and amortisation—trended higher, the Ebitda margin likely took a 29 basis points hit.

• Revenue seen 7% higher at Rs 40,929 crore versus 38,235 crore.

• Ebitda seen 5% higher at Rs Rs4,897 crore versus Rs 4,685 crore.

• Margin seen at 11.96% versus 12.25%.

• Profit seen 1% lower at Rs 3,857 crore versus Rs 3,878 crore.

Varun Baxi of Nirmal Bang seemed to agree with that assessment.

“We expect Maruti Suzuki’s margins to decline… largely due to higher raw material prices and marketing-related expenditure on new launches,” he said in an April 13 note.

IIFL, at the same time, saw clear tailwinds—operating leverage and lower discounts—and clear headwinds—an increase in commodity prices weighing on margins. Depreciation linked to a new plant may also weigh on operational profitability.

HSBC

• Ebitda margin to expand by 10 basis points on a sequential basis as lower discounts offset commodity headwinds and higher employee costs in the new plant.

• Average yen/rupee fluctuations to have a 10-20 basis point negative impact on margins.

• 30 basis points negative impact on gross margins due to commodity costs.

• Overall mix deteriorated: SUV share down 110 basis points to 31.6%. PV share up 5.8%.

• Net benefit on margins will be lower due to higher wholesale versus retail in Q4.

Investec

• Revenue to increase 7% YoY, led by volume growth and higher ASP.

• Domestic volumes grew 3% YoY, while exports grew 8% YoY.

• Higher discounting and launch expenses to offset operating leverage.

BofA

• Sequential improvement on margin with lower discounts and operating leverage.

• Depreciation on the new plant to weigh on operating earnings growth.

• ASP inflation and margin expansion are likely to be fairly modest ahead.