Maruti Suzuki has announced its financial results for FY26, reporting strong growth in revenue and sales volumes. However, profit growth remained limited, Even if the company has flagged Supply-side constraints and regulatory uncertainties are key factors going forward.
Strong sales growth driven by increased demand
Maruti recorded total sales of 2,422,713 units in FY26, up from 2,234,266 units last year. Domestic sales stood at 1,974,939 units, while exports grew sharply to 447,774 units. The company attributed the strong growth in the second half of the year to better demand. Supported by GST cut.
Maruti retained its position as India’s top passenger vehicle exporter for the fifth consecutive year, contributing about 49% of the country’s total PV exports. Exports were further boosted by shipments of the India-made e Vitara, which is now being exported to 44 global markets.
Despite strong demand, supply constraints
Despite demand remaining strong, Maruti highlighted production limitations as a major hurdle. The company almost ended the financial year 190,000 customer orders are pendingWhich includes around 130,000 orders in the small car segment. Dealer inventories also remained low by about 12 days, indicating supply is not fully matching demand. This shows Maruti’s growth could have been higher If production capacity was not a limiting factor.
Revenue increased, profit growth remained limited
Maruti reported net sales of Rs 1,743,695 million in FY26, a growth of nearly 20% over the previous year. However, net profit stood at Rs 144,454 million, slightly higher than Rs 142,976 million reported in FY20.
The relatively flat profit growth despite strong revenue expansion reflected higher cost absorption during the year. Data from the company’s investor presentation indicate a decline in margins, with EBITDA margins softening compared to last year, impacted by factors such as commodity costs and lower non-operating income.
Q4 performance and profit decline
In the January-March 2026 quarter, Maruti recorded its highest ever quarterly sales of 676,209 units. Net sales for the quarter stood at Rs 500,787 million. However, net profit declined 6.9% to Rs 35,905 million mainly due to mark-to-market effects, even as operating performance remained strong.
Increase in dividend – The company has recommended a final dividend of Rs 140 per share for FY26, up from Rs 135 per share last year, which is its highest dividend payout ever.
Uncertainty remains in scrappage policy – Maruti also highlighted the uncertainty around the implementation of end-of-life vehicle (ELV) rules, which come into effect from April 2025. The company said it is currently unable to determine the financial impact due to lack of clarity on the pricing mechanism and execution framework. This remains a major regulatory factor that may impact cost structures for automakers in the future.
SMG merger completed – The amalgamation of Suzuki Motor Gujarat Private Limited with Maruti Suzuki India Limited was completed during the year, effective from December 1, 2025. The financial position has been restored accordingly from April 1, 2025.
Strong demand meets supply constraint – While Maruti delivered strong revenue and volume growth in FY26, capacity constraints, cost pressures and regulatory changes are likely to shape its near-term performance. With demand remaining strong and supply yet to fully catch up, production expansion and policy clarity will be important factors in the coming quarters.
