Maruti Suzuki Q1 profit slips 10.8% as commodity costs compress margins

Standalone net profit fell to Rs 3,352 crore despite 35.9% revenue growth and record sales volume. EBITDA margin narrowed to 8.2% from 12%, while Maruti approved Rs 561 crore for four initial compressed-biogas projects.

By ·Devil's-advocate pass

— Source publishedFri, 31 Jul, 2026, 23:00 IST·First seen Fri, 31 Jul, 2026, 23:23 IST·Source Financial Express · BrandWagon

The development

Maruti Suzuki’s Q1 profit fell 10.8% as higher commodity costs cut EBITDA margin to 8.2%, despite record sales, SUV growth and improved market share. The carmaker also approved Rs 561 crore for four initial compressed-biogas projects.

The numbers

  • Standalone net profit Rs 3,352 crore, down 10.8% YoY
  • Revenue Rs 52,456 crore, up 35.9% YoY
  • EBITDA Rs 4,311 crore, down 6.7% YoY
  • EBITDA margin 8.2%, versus 12% a year earlier
  • Sales volume 682,724 units, up 29.3% YoY
  • SUV volumes up 44.6% YoY
  • Domestic small-car sales up 34.1% YoY
  • Exports up 28.6% YoY
  • Domestic market share 41.2%, up 2.3 percentage points
  • Dealer inventory 13 days
  • Initial CBG-project investment Rs 561 crore
  • Four compressed biogas manufacturing projects

Why it matters to operators and investors

The Rs 561 crore commitment to initial compressed-biogas projects signals a strategic move to build alternative-fuel capabilities and diversify its mobility ecosystem.

What to watch next

  • Quarterly EBITDA margin trajectory versus the 8.2% reported level.
  • Steel, aluminium, precious-metal and foreign-exchange movements.
  • Sequential price hikes, dealer discounts and average selling price trends.
  • SUV and CNG mix, alongside entry-level vehicle demand.
  • Order backlog, dealer inventory and monthly wholesale-retail sales divergence.
  • Progress, feedstock tie-ups and commissioning timelines for the four compressed-biogas projects.
  • Competitive launches and pricing actions from Hyundai, Tata Motors and Mahindra.
  • Implement further calibrated price increases and reduce discount leakage.
  • Prioritize SUV, CNG and premium-model production allocation to improve mix.
  • Accelerate local sourcing and commodity-cost hedging or supplier renegotiations.
  • Advance compressed-biogas projects to support CNG fuel availability and lower lifecycle-emissions positioning.
  • Use record-volume demand to improve capacity utilization while managing inventory tightly.