Maruti Suzuki Q2 Net Profit falls 26% to ₹2,466 Crore Amid Input Cost Inflation

Pune: Maruti Suzuki, India’s biggest car maker, on Tuesday, posted a 26 per cent year-on-year decline in consolidated net profit to Rs 2,466.1 crore for the second quarter ended Sept., due to higher input costs resulting from the West-Asia conflict and sharp mark-to-market losses on its investment portfolio.

It had posted a net profit of Rs 3,349 crore in the same quarter of the previous fiscal, a regulatory filing to the exchanges showed.

However, revenues rose 26 per cent year-on-year to Rs 53,355.5 crore, driven by record quarterly vehicle sales volumes during July-September period.

Total expenses during the quarter also shot up to Rs 50,619 crore as compared to Rs 39,018.4 crore in the year-ago period, the company said.

Cost of materials consumed in the second quarter rose to Rs 37,488.5 crore from Rs 25,324.2 crore in the corresponding period last fiscal, it added.

According to the company's earnings release, operating profit (EBIT) declined 17.1 percent year-on-year to Rs 2,803.7 crore in Q2 FY27 from Rs 3,382 crore in the corresponding quarter last year. However, operating profit increased 10.8 percent sequentially from the April-June quarter.

Maruti attributed the decline in operating profit to higher commodity costs arising from the West Asia conflict. Non-operating income also fell sharply during the quarter because of mark-to-market losses on invested surplus.

On a standalone basis, the company's net profit declined to Rs 2,414.9 crore from Rs 3,302.8 crore a year earlier.

Maruti Suzuki achieved its highest-ever quarterly sales volume of 6,96,654 vehicles, registering a 26.5 per cent increase from the year-ago period.

"The company's growth in the domestic passenger vehicle market was broad-based, with small car sales increasing by 35.9 per cent and SUV sales by 68.2 per cent,” the company said in a statement, adding that its recently introduced SUVs received a strong market response and contributed to this robust growth.

Maruti said its domestic market share increased by 2.2 percentage points to 40.8 per cent.