Maruti Suzuki posted a healthy year-on-year growth in the September quarter (Q2 FY26), but the stock came under pressure post-results. While the company reported a YoY rise in profitability and revenue, the market reaction turned negative due to weaker-than-expected metrics on a sequential basis and a miss on analyst estimates.
The auto major reported revenue from operations of ₹42,100.8 crore in Q2 FY26, up from ₹37,200.3 crore in Q2 FY25. Net profit for the quarter rose to ₹3,293.1 crore versus ₹3,069.2 crore a year ago. However, profit came in below expectations — analysts were estimating roughly ₹3,618 crore. The miss on estimates triggered concerns around earnings quality.
On a quarter-on-quarter basis, the performance was softer. Net profit slipped from ₹3,711.7 crore in Q1 FY26 to ₹3,293.1 crore this quarter. Revenue also softened sequentially, moving from ₹38,413.6 crore to ₹42,100.8 crore, indicating moderation in volume momentum and operating leverage benefits.
Margins were stable but not as strong as expectations. Maruti posted EBITDA of ₹4,434 crore versus the Street estimate of ₹4,190 crore, with operating margin at 10.53% vs estimated 10.6%, signalling cost pressures and model mix impact despite premiumisation tailwinds.
Brokerages and investors typically price in expectations, and with estimates missed and QoQ momentum cooling, the stock reacted negatively despite healthy YoY performance.
Maruti highlighted that while demand remains resilient, competitive intensity and cost inflation continue to weigh on profitability. The company remains focused on strengthening its premium and SUV portfolio, increasing hybrid and CNG penetration, and expanding localisation and EV readiness.
Investors now await management commentary on festive demand, margin trajectory, and production planning as the company moves into the second half of FY26.
