Shares of Maruti Suzuki are currently trading nearly 2% higher at ₹11,855 after the automaker announced its March quarter results, which fell short of Street expectations.
Maruti reported a 6% year-on-year rise in revenue to ₹40,674 crore, broadly aligning with analyst forecasts. However, its EBITDA disappointed, declining 9% to ₹4,264.5 crore compared to Street estimates of ₹4,980 crore, primarily due to costs associated with the new greenfield plant, increased R&D spending, and digitisation initiatives.
Separately, the company announced a record dividend of ₹135 per share (on a face value of ₹5 each), amounting to a massive 2700% payout. The record date and dividend payment date were also finalized during the Q4 FY25 results announcement, marking the highest-ever dividend declared by Maruti Suzuki, according to BSE data.
Despite the underwhelming quarterly numbers, the hefty dividend declaration has left investors debating whether to buy, sell, or hold the stock.
Brokerages, however, continue to maintain a bullish outlook. Among the 46 analysts covering Maruti Suzuki, 37 have a ‘Buy’ recommendation, six suggest ‘Hold,’ and three advise ‘Sell,’ with a consensus estimate implying a 16% potential upside from current levels.
What brokerages recommend:
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BoFA Securities has reiterated its ‘Buy’ rating with a target price of ₹14,000. It attributed the margin miss to startup costs at the new plant (impacting margins by 30bps), year-end spending (90bps), and a weaker model mix. While margin pressures are expected to persist into Q1 FY26, BoFA remains positive, citing an upcoming SUV launch and strong export guidance for FY26.
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Nomura has maintained a ‘Neutral’ rating with a target price of ₹12,886. The brokerage flagged margin pressure as a key risk, noting that higher other expenses impacted Q4 margins. Although domestic growth is expected to be modest, exports are projected to rise 20% year-on-year.
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JPMorgan also holds a ‘Neutral’ stance with a target price of ₹12,800, stating that Q4 results missed expectations, with EBIT coming in 14% below estimates. Nonetheless, lower discounting and higher QoQ volumes provided some cushion.
