Standalone net profit of Maruti Suzuki India Ltd (NSE: MARUTI | BSE: 532500) fell 26.9% YoY to ₹2,415 crore in Q2FY27, while revenue surged 26%. Currency fluctuations, higher raw material costs and lower other income adversely impacted profitability. The country's largest passenger vehicle manufacturer is considering further price increases over the next six months to protect its margins.

Maruti Suzuki Q2FY27 Results: Profit Declines, Revenue Up

Standalone revenue from operations of Maruti Suzuki stood at ₹53,340 crore for the September quarter, compared with ₹42,332 crore in Q2FY26.

EBITDA declined 6.3% YoY to ₹4,763 crore from ₹5,085 crore. EBITDA margin contracted sharply from 12% a year ago to 8.9%.

The company's total expenses increased by nearly 30% YoY to approximately ₹50,604 crore, reflecting higher input costs.

Additionally, the net profit margin declined from 7.8% to approximately 4.5%, indicating that higher vehicle sales were insufficient to offset rising operating costs.

Why Did Maruti Suzuki's Profit Drop Despite a Surge in Sales?

The decline in profitability was primarily driven by higher commodity prices, unfavourable foreign exchange movements and lower non-operating income.

Earnings were also affected by a decline in other income, which fell from ₹966 crore in the corresponding quarter last year to approximately ₹429 crore.

Higher raw material costs, particularly for metals and other automotive components, further pressured operating margins.

Maruti Suzuki has already increased vehicle prices twice during the September quarter and is considering additional price hikes over the next six months.

To offset rising costs, the company is implementing cost-reduction measures and tighter monitoring of discretionary spending and marketing expenses.

Growth Driven by Record Vehicle Sales, CNG Demand

Maruti Suzuki recorded its highest-ever quarterly vehicle sales of 6,96,654 units, representing a 26.5% YoY increase, even as profitability weakened.

Domestic sales rose 33.6% YoY to 5,88,535 units, supported by festive-season demand.

Compact and mid-size car sales increased 31.9% to 2,81,308 units, while utility vehicle volumes surged 52.3% to 2,36,807 units.

However, exports declined 2.1% to 1,08,119 units.

The company's compressed natural gas (CNG) vehicle business continued to expand, with volumes increasing nearly 44% during H1FY27.

Maruti Suzuki's target of selling more than 9,00,000 CNG vehicles in FY27 reflects growing demand for alternative-fuel vehicles.

Maruti Suzuki Stock Price: How Did the Stock React?

On October 27, ahead of the earnings announcement, Maruti Suzuki shares closed at ₹11,450 on the NSE, registering a gain of 2.05%.

The stock was trading 0.64% higher at ₹11,523 around 9:57 am on October 28, despite the reported decline in quarterly profitability.

The modest gain followed record vehicle sales and expectations of continued demand growth, although margin pressure remained a key concern.

What Is Maruti Suzuki's Future Outlook?

Maruti Suzuki expects sales growth to continue during the second half of FY27, with the possibility of achieving double-digit growth, supported by the planned expansion of manufacturing capacity beginning January 2027.

However, further vehicle price increases, export-related disruptions and rising commodity costs will remain important factors influencing demand and profitability.

The Q2FY27 results highlight a clear divergence between the company's declining profitability and robust sales growth. The coming quarters will be crucial in determining whether Maruti Suzuki can restore operating margins through higher volumes, planned price increases and cost-control measures.