Maruti Suzuki reported a 26.4 percent year-on-year decline in consolidated net profit to Rs 2,466.1 crore for the fiscal second quarter. The company said higher commodity costs linked to the West Asia conflict hit margins. Despite this, they achieved record quarterly sales volumes of 6,96,654 vehicles, showing strong market demand.

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Maruti Suzuki India Ltd on Tuesday, reported a 26.4 percent year-on-year decline in consolidated net profit to Rs 2,466.1 crore for the fiscal second quarter, despite a 26 percent increase in revenue from operations to Rs 53,355.5 crore.

The country's largest passenger carmaker reported record quarterly sales volumes, but profitability was hit by higher commodity costs linked to the West Asia conflict and mark-to-market losses on invested surplus, the company said in a stock exchange filing.

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 Suzuki 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.

Record quarterly sales, domestic market share rises

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

Growth in the domestic passenger vehicle market was broad-based, with small car sales rising 35.9 percent and SUV sales surging 68.2 percent. The company said its recently introduced SUVs received a strong market response, contributing to the robust growth. Maruti Suzuki's domestic passenger vehicle market share increased by 2.2 percentage points to 40.8 percent during the quarter.

The company said recent capacity additions helped it meet stronger demand. However, demand continued to outpace supply despite the expanded production capacity. Consequently, network inventory remained low at approximately 17 days, while pending bookings stood at around 2 lakh vehicles at the end of September.

In international markets, exports declined marginally to 1,08,119 vehicles from 1,10,487 vehicles in the corresponding quarter last year, amid challenging geopolitical conditions.

Shares of Maruti Suzuki India gained 1.6 percent to Rs 11,450 on Tuesday, ahead of the announcement of its quarterly results.

Maruti Suzuki H1 FY27 performance

For the first half of FY27, Maruti Suzuki reported record sales volumes of 13,79,378 vehicles, up 27.9 percent year-on-year, comprising domestic sales of 11,46,523 units and exports of 2,32,855 units. Standalone net sales increased to Rs 1,00,574.6 crore from Rs 76,756.4 crore a year earlier, while net profit declined to Rs 5,767 crore from Rs 7,060.9 crore.