Maruti Suzuki, Sun Pharma, Ambuja Cement, Eicher Motors, TVS Motor, IGL, Niva Bupa And More Q1 Results Review

Maruti Suzuki India Ltd.’s Q1 FY26 margin, at 10.4%, was in line with both ours and Bloomberg consensus estimates. The brokerage expects this to improve as and when the Kharkhoda plant ramps up utilization. Eicher Motors Ltd.’ Q1 FY26 standalone Ebitda margin improved 40bps QoQ to 25.1%, below Bloomberg consensus estimate of 25.4% but above the brokerage estimate of 24.0%.

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HDFC Securities Institutional Equities

Maruti Suzuki - Market share hinges on upcoming SUV launches

Maruti Suzuki India Ltd.’s Q1 FY26 margin, at 10.4%, was in line with both ours and Bloomberg consensus estimates. We expect this to improve as and when the Kharkhoda plant ramps up utilization.

In the near term, firm steel prices continue to threaten gross margins. Subdued domestic demand could persist in FY26, and thus focus shifts to FY27, which could see a positive impact from the 8 th Pay Commission, the income tax cut announced in the last Union Budget, and pent-up replacement demand for hatchbacks.

We expect exports to continue to do well in the medium term, as Maruti has made efforts in the past few years to ramp up penetration across export markets and has widened the portfolio. We value the company at 24x Jun-27 EPS for a target price of Rs 14,990 and maintain a Buy rating.

Eicher Motors - Market activation continues to drive volumes

Eicher Motors Ltd.’ Q1 FY26 standalone Ebitda margin improved 40bps QoQ to 25.1%, below Bloomberg consensus estimate of 25.4% but above our estimate of 24.0%.

We expected a harder hit on margin due to higher raw material cost and marketing expenses. We are seeing the company’s “volume over margin” strategy play out, with a focus on absolute Ebitda growth. The company will continue focusing on market activation to drive volume growth and remains bullish on the festive season with more variant activations planned.

In the medium term, we also expect that the company’s efforts of the last few years in international markets will pay off, once global macro turns favorable. We value the company at 26x Jun-27 EPS, and along with the value of VECV, we achieve a target price of Rs 5,898 and maintain our Add rating.

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