The consolidated web revenue of Maruti Suzuki India (MSIL) decreased by 6.4 per cent year-on-year (YoY) to Rs 3,649 crore within the fourth quarter of 2025–26 (FY26) as a consequence of larger commodity prices and adversarial mark-to-market affect on its debt investments. This drop in revenue got here although its quantity gross sales elevated by 11.8 per cent YoY to 676,209 models in the identical interval.
Explaining the decline in profitability, MSIL Chairman R C Bhargava mentioned a pointy rise in commodity costs pushed up materials prices by over two share factors as a share of gross sales in comparison with final 12 months, which considerably affected margins. “Two per cent is a big, big quantity and that has introduced down the revenue stage,” he added throughout a video press convention.
MSIL additionally confronted successful from mark-to-market valuation of its debt devices within the March quarter, Bhargava knowledgeable. In easy phrases, this implies the corporate has to worth its investments primarily based on present market costs on the finish of the quarter, even when it has not offered them. If costs fall at that second, it reveals up as a loss on paper, although the corporate has not truly misplaced cash.
“You realize mark-to-market is nothing everlasting. It retains altering and in the end when the safety is matured, you get your full worth for it. There isn’t a loss. However notionally mark-to-market outcomes both in earnings going up or earnings coming down. However these are all accounting entries. They don’t seem to be actual entries so far as I’m involved,” he mentioned.
When requested in regards to the ongoing West Asia battle, Bhargava mentioned the affect on the home vehicle market stays restricted to this point, with no main disruptions to demand or manufacturing. He famous that the state of affairs stays unsure and tough to foretell, however present circumstances haven’t materially affected gross sales. “There may be minimal affect on the automotive market in India at current due to the warfare,” he mentioned, whereas including that potential dangers may come up from larger gas costs, although these stay speculative at this stage.
On the query about the way forward for small automobiles amid rising demand for sport utility autos (SUVs), Bhargava asserted that the section will proceed to have a powerful long-term function in India. He emphasised that the corporate just isn’t shifting away from small automobiles however will develop each small automobiles and SUVs in parallel.
“India just isn’t a wealthy nation the place all people has a per capita earnings of $40,000 and all people should buy large automobiles. It’s not taking place. Not in a very long time,” he mentioned, underlining the structural significance of inexpensive mobility for a big part of the inhabitants.
He added that authorities consciousness of affordability challenges, together with the present GST construction (after important rationalisation in September 2025), ought to stop a repeat of the sharp decline beforehand seen in small automotive gross sales. “The share of small automotive gross sales in our whole gross sales will go up,” he said.
He mentioned MSIL would comfortably adjust to the upcoming company common gas effectivity (CAFE-3) norms. “The brand new CAFE guidelines should not going to get that tough for us to do, particularly if we now have a number of gas choices and we will get into compressed biogas (CBG) and ethanol and such fuels,” he famous.
On capital expenditure, Bhargava mentioned MSIL has earmarked round Rs 14,000 crore for the present monetary 12 months, the best in its historical past, because it expands manufacturing capability. The investments will go in direction of increasing the prevailing plant in Kharkhoda, Haryana, and establishing the brand new plant in Khoraj, Gujarat.
He reiterated that the corporate’s income development is intently linked to capability enlargement, with the corporate already working at close to full utilisation ranges and sustaining low stock. The corporate’s whole manufacturing capability presently stands at about 2.4 million models, and about 0.5 million models capability will probably be added in FY27.
Responding to questions on declining market share (in quantity phrases), which has fallen under 40 per cent, Bhargava downplayed its significance, arguing that capability utilisation and profitability matter greater than relative share. He mentioned market share is an consequence of general business dynamics and doesn’t straight mirror operational efficiency if the corporate is producing and promoting at full capability.
He remarked, “Please don’t harp on market share… You take a look at how a lot we’re increasing, how a lot we’re utilising this capability, and the way properly our automobiles are being accepted by the purchasers. I feel these are rather more necessary facets for a automotive firm than this determine of market share.”
On electrical autos, Bhargava mentioned the corporate is continuing cautiously with its e-Vitara rollout, specializing in buyer readiness and infrastructure. He mentioned MSIL is presently promoting round 1,500 models of e-Vitara per 30 days domestically whereas additionally exporting the mannequin. A significant situation for gross sales is guaranteeing that patrons have charging infrastructure in place. “We are going to go slowly, we’re not in a rush. It’s a long-term sport,” he mentioned, including that buyer expertise will probably be central to the corporate’s EV technique.
He mentioned that challenges associated to charger set up at buyer premises stay a constraint that must be addressed to scale up adoption.
On pricing, Bhargava didn’t point out any instant plans for aggressive worth hikes, although he acknowledged value pressures within the business. He instructed that whereas exterior components corresponding to enter prices and potential gas worth adjustments stay unsure, the corporate will proceed to stability affordability with profitability. He additionally identified that the present GST charge of 18 per cent leaves restricted room for additional tax reductions to assist affordability, indicating that coverage assist has largely reached its possible restrict.
