Maruti Suzuki Q2 Preview: Analysts See Growth In Bottomline Even As Operating Margins Weigh
Analysts expect a growth of 12% in topline for the automaker.
Maruti Suzuki India Ltd. is set to announce its financial results for the September quarter on Friday.
Standalone net profit is projected to climb to Rs 3,571 crore from Rs 3,069 crore in the year-ago period, as per analysts' consensus estimates compiled by Bloomberg.
This festive season, the automotive industry witnessed a significant shift in consumer behaviour with demand for entry-level cars rising compared to two-wheelers, which have been traditionally preferred, stated the owner of a Maruti Suzuki dealership in Uttar Pradesh in conversation with NDTV Profit.
India’s automotive market saw its brightest Dhanteras yet, with more than one lakh passenger vehicles reportedly sold over the two-day period. The total retail value of these sales is projected between Rs 8,000 and Rs 8,500 crore, according to industry estimates, Autocar India reported.
According to industry experts, the GST 2.0 reforms that came into effect from Sept. 22 also drove up the demand for entry-level cars.
Maruti Suzuki Q2 FY26 Estimates (Standalone, YoY)
Revenue expected to rise 12.2% to Rs 39,930 crore versus Rs 35,589 crore.
Ebitda to decline to Rs 4,229.8 crore from Rs 4,416.6 crore
Margin to contract to 10.6% from 12.4%
Net profit to rise to Rs 3,571 crore from Rs 3,069 crore.
Q2 Business Recap
The automaker had reported a tepid quarterly performance in the corresponding quarter last year. The standalone net profit of the Swift maker fell 17.4% year-on-year to Rs 3,069 crore in the three months ending Sept. 30, on the back of revenue that grew 0.4% to Rs 37,203 crore.
The decline in profit was attributed to a "significantly higher" tax outgo of Rs 1,015 crore, as against Rs 67 crore a year ago.
Shares of Maruti Suzuki closed 0.32% higher at Rs 16,190 apiece on the National Stock Exchange on Thursday, compared to a 0.68% decline in the benchmark Nifty. The stock has risen 43.97% in the last 12 months and 49.25% on a year-to-date basis.
