Maruti Suzuki Q1 FY27 profit falls 9.1% to ₹3,447 crore as costs surge
Synopsis
Maruti Suzuki's top line hit a record ₹52,469 crore in Q1 FY27, yet profits fell 9.1% — a classic margin squeeze story. Raw material costs ballooned 45.9%, wiping out the gains from a 36% revenue jump and pushing the EBITDA margin to a multi-quarter low of 8.9%. The Kharkhoda plant is adding volume, but the cost curve is running ahead of the revenue curve.
Key Takeaways
Maruti Suzuki consolidated net profit fell 9.1% year-on-year to ₹3,447 crore in Q1 FY27 .
Revenue from operations surged 36% to ₹52,469 crore , driven by domestic sales and exports.
EBITDA margin narrowed to 8.9% from 11.6% a year earlier; raw material costs rose 45.9% to ₹32,013 crore .
Domestic SUV sales grew 44.6% and small car sales rose 34.1% ; exports up 28.6% .
Market share expanded 2.3 percentage points to 41.2% , aided by the new Kharkhoda plant.
Board approved four CBG projects with a total investment of ₹561 crore in phase one.
Maruti Suzuki India Limited reported a 9.1% year-on-year decline in consolidated net profit to ₹3,447 crore for the quarter ended 30 June 2025 (Q1 FY27), as a sharp surge in raw material and operating costs eroded margins despite record-high revenue. The country's largest carmaker disclosed the results in a stock exchange filing on Friday, 31 July.
Profit and Revenue at a Glance
Consolidated net profit fell from ₹3,792 crore in Q1 FY26 and also slipped 5.8% sequentially from ₹3,659 crore in Q4 FY26. Revenue from operations, however, surged 36% year-on-year to ₹52,469 crore, up from ₹38,605 crore a year earlier, driven by stronger domestic sales and export volumes.
Where Margins Came Under Pressure
EBITDA stood at ₹4,313 crore, with the EBITDA margin narrowing sharply to 8.9% from 11.6% in the year-ago quarter. Total expenses surged 40.5% year-on-year to ₹50,000 crore, outpacing revenue growth by a significant margin. Raw material costs were the primary culprit, climbing 45.9% to ₹32,013 crore, while employee benefit expenses rose 20.3% and other operating expenses increased 17.7%.
Strong Sales Volumes Across Segments
Despite the profit squeeze, Maruti Suzuki posted robust volume growth across its key categories. Domestic small car sales rose 34.1% year-on-year, while SUV sales expanded 44.6%. Exports grew 28.6% over the same period last year. The company's domestic market share widened by 2.3 percentage points to 41.2%, supported by increased production capacity following the commissioning of its second manufacturing plant at Kharkhoda.
Clean Energy Push: CBG Projects Approved
In a strategic move to strengthen its clean energy portfolio, Maruti Suzuki's board approved four compressed biogas (CBG) projects in the first phase, with a combined investment of ₹561 crore (₹5,610 million). The company said its board will consider expanding CBG manufacturing capacity based on the performance of these initial projects, signalling a longer-term commitment to alternative fuel infrastructure.
What to Watch Next
The cost-revenue gap will be the key metric to track in the coming quarters. With the Kharkhoda plant ramping up output, production efficiencies could partially offset raw material headwinds. Analysts will also watch whether the CBG initiative translates into a commercially viable revenue stream or remains an early-stage sustainability play.
Point of View
But scale without cost discipline simply moves more units at thinner returns. The CBG investment is directionally sound, but four pilot projects do not yet constitute an energy transition strategy. The real question heading into Q2 is whether commodity cost pressures ease or whether Maruti will need to pass them on through price hikes, risking the very volume momentum that is currently its strongest card.
NationPress
31 Jul 2026
Frequently Asked Questions
What was Maruti Suzuki's net profit in Q1 FY27?
Maruti Suzuki reported a consolidated net profit of ₹3,447 crore in Q1 FY27 (April–June 2025), a 9.1% decline from ₹3,792 crore in the same quarter last year. On a sequential basis, profit also fell 5.8% from ₹3,659 crore in Q4 FY26.
Why did Maruti Suzuki's profit fall despite higher revenue?
Profits fell because total expenses surged 40.5% year-on-year to ₹50,000 crore, outpacing the 36% revenue growth. Raw material costs alone jumped 45.9% to ₹32,013 crore, compressing the EBITDA margin from 11.6% to 8.9%.
How did Maruti Suzuki's sales perform in Q1 FY27?
Sales performance was strong across segments — domestic SUV volumes grew 44.6%, small car sales rose 34.1%, and exports expanded 28.6% year-on-year. The company's domestic market share reached 41.2%, up 2.3 percentage points, supported by the new Kharkhoda plant.
What are the compressed biogas (CBG) projects Maruti Suzuki approved?
Maruti Suzuki's board approved four CBG projects in the first phase with a total investment of ₹561 crore (₹5,610 million). The company plans to evaluate expanding CBG manufacturing capacity based on the performance of these initial projects.
What is the significance of Maruti Suzuki's Kharkhoda plant?
The Kharkhoda plant is Maruti Suzuki's second manufacturing facility and has increased the company's overall production capacity. Its commissioning helped drive the 2.3 percentage point gain in domestic market share to 41.2% in Q1 FY27.
