Maruti shares jump 5% post Q4, FY26 results: From record annual profit to ₹14K cr FY27 capex, check concall highlights

The company on Tuesday reported a record annual consolidated net profit of ₹14,679.5 crore in FY26, a year-on-year (YoY) growth of 1.24%, riding on its best-ever annual sales of over 24.22 lakh units, propelled by the GST rate reduction.

The company had posted a consolidated net profit of ₹14,500.2 crore in the previous fiscal, Maruti Suzuki India said in a regulatory filing.

The total revenue from operations in FY26 was ₹1,83,316 crore compared to ₹1,52,913 crore logged in FY25, it added.

Its total vehicle sales in FY26 were a record 24,22,713 units against 22,34,266 units in FY25, the company said.

Domestic sales in FY26 stood at 19,74,939 units, its highest ever, compared to 19,01,681 units in FY25, while exports were also at a record of 4,47,774 units against 3,32,585 units a year ago, it added.

"It was a record year for us in almost every respect. It became a record year largely because of the GST reforms and the reduction in the GST rate, which the government and the finance minister brought about from September last year," Maruti Suzuki India Chairman RC Bhargava told reporters in an earnings call.

Maruti earnings: Key points

The GST rate cut had "a very, very big effect, not only on the automobile sector but also on many other sectors", the chairman said, adding that "we are very happy that we have had this opportunity to grow in the second half of the year".

The board of directors has recommended a record dividend of ₹140 per share for the year, compared to ₹135 per share in 2024-25.

Q4 FY26 highlights

In the fourth quarter, the company reported a 6.45% decline in its consolidated net profit to ₹3,659 crore due to the mark-to-market impact despite record vehicle sales.

The auto major had posted a net profit of ₹3,911.1 crore in the same quarter of the preceding fiscal.

The net profit declined primarily due to mark-to-market impact, the company said, adding that there was lower non-operating income, a notional loss due to a change in bond yields, which can be recovered at a later stage.

Bhargava said two factors -- rising commodity prices and mark-to-market on debt instruments -- have prevented an increase in profits.

Commodity prices spike

"Commodity prices went up sharply this year, and material cost went up by a little bit over 2% of sales compared to what it was last year, and 2% is a huge number, and that has brought down the profit level," Bhargava noted.

On the mark-to-market on debt instruments on which the company invests its money, he said these keep changing and are "all accounting entries", but the company will get their full value when the security is mature.

Its total revenue from operations in the fourth quarter rose 28.2% to ₹52,462.5 crore in the fourth quarter against ₹40,920.1 crore in the same period of 2024-25, the company said.

Net sales cross ₹50K crore milestone

Net sales crossed the ₹50,000 crore milestone for the first time in the fourth quarter, it added.

Total expenses in the quarter under review were higher at ₹48,125.3 crore compared to ₹37,585.5 crore in the year-ago period, the company said.

Highest quarterly sales in Q4 FY26

During the fourth quarter, the company said, it recorded its highest-ever total quarterly sales of 6,76,209 units, up 11.8% from the year-ago period.

Domestic sales stood at 5,38,994 units and exports at an all-time high of 1,37,215 units, Maruti Suzuki India said.

The company, however, said its sales were restricted by a limitation in the production capacity, as evidenced by about 1.9 lakh pending customer orders at year's end, including nearly 1.3 lakh orders for small cars in the 18 per cent GST bracket.

In addition, the dealer inventory was at a low of about 12 days' stock, it added.

Capex of ₹14,000 crore lined up

Maruti Suzuki India has earmarked a record capital expenditure of ₹14,000 crore for FY27, as it gears up to add capacity to meet rising demand, having reached 100 per cent capacity utilisation at its existing facilities, its chairman R. C. Bhargava said on Tuesday.

The two lines to be added at Kharkhoda (Haryana) and Hansalpur (Gujarat), with a total production capacity of 5 lakh units annually, will help the company meet demand, especially for small cars, he said in an earnings call, while also ruling out any drastic impact on demand in India due to the West Asia war.

"Capex for this year (FY27) is estimated to be around ₹14,000 crore. As we have said, this is the highest in any of the past years. This higher capex is because we are continuing to install units in Kharkhoda. We are starting work on a new site in Gujarat, and therefore, the capex has gone up because of these new investments in manufacturing capacity," Bhargava said.