Maruti Suzuki India Limited — PPTs, 31-07-2025: Investor Presentation

**Financial Highlights:**

Maruti Suzuki India Limited (MSIL) reported Q1 FY26 Net Sales up 8.1% year-on-year (YoY) to INR 36,624.7 Cr, with Profit After Tax (PAT) increasing 1.7% YoY to INR 3,711.7 Cr. Operating EBIT (Op. EBIT) declined 18.9% YoY to INR 3,057.8 Cr, leading to margin contraction to 8.3% from 11.1%. This was primarily due to adverse commodity prices, foreign exchange movements, higher sales promotion expenses, and new plant related costs, partially offset by cost reduction efforts and higher non-operating income. Sequentially, sales volumes saw a 12.7% quarter-on-quarter (QoQ) dip, but PAT remained flat due to lower manufacturing, administrative, and advertisement expenses, coupled with higher non-operating income.

**Strategic Initiatives & Growth Drivers:**

The company continues to focus on cost reduction efforts to mitigate adverse factors. Expenses related to the new Kharkhoda greenfield plant indicate ongoing capital expenditure aimed at future capacity expansion and growth, despite their current impact on margins.

**Business Developments:**

Total sales volume increased by 1.1% YoY to 527,861 units. Notably, exports surged by 37.4% and sales to other Original Equipment Manufacturers (OEMs) rose by 18.8%, highlighting expanding business segments beyond the core domestic market.

**Market Position & Competitive Advantage:**

The investor presentation does not contain specific commentary regarding the company's market leadership position, differentiation, or scale advantages within the industry.

**Investor Implications:**

While MSIL demonstrates modest YoY revenue and profit growth, margin pressures arising from input costs and new plant operational expenses are a key area to monitor. The significant growth in exports and OEM sales points to diversification and positive growth potential. However, the costs associated with the Kharkhoda plant represent a short-term execution risk impacting profitability.