India's automotive giant, Maruti Suzuki, is accelerating towards its most powerful annual financial performance in nearly a decade, fueled by robust domestic demand and a brightening economic outlook that has investors on Dalal Street buzzing with optimism.
A Remarkable Rally on the Stock Market
So far in the current year, the company's shares have skyrocketed by an impressive 46.21% to reach ₹15,903 per share. If this positive momentum continues through the end of the year, it will represent the stock's most significant annual gain since 2017, a year when it witnessed an explosive 83% surge.
This powerful rally has propelled the automaker into an exclusive financial league, pushing its market capitalisation beyond the monumental ₹5 lakh crore mark. This achievement places Maruti Suzuki among a privileged group of only 12 Indian companies to have ever reached this financial milestone.
Driving Forces Behind the Surge
Although the year began on a volatile note for the stock, it found stability in March and then gained powerful traction from August onwards. This shift was driven by growing market expectations that government measures, including potential indirect tax cuts (GST) and anticipated RBI repo rate reductions, would successfully boost domestic demand, particularly reviving the crucial small-car segment.
This anticipated trend began to materialize in the sales numbers for October. Brokerages have reinforced this positive sentiment by raising their target prices for the stock, forecasting a sharp rebound in domestic sales.
The festive period between 22nd September and 31st October 2025 served as a clear testament to this revival. The company recorded spectacular sales of 400,000 units, a massive jump from the 211,000 units sold during the same period a year earlier. Within this total, small cars made a stunning comeback, contributing approximately 250,000 units and marking a 100% year-on-year growth.
Quarterly Performance and Future Outlook
For the September quarter (Q2), Maruti Suzuki reported a performance that met market expectations. The company posted a net profit of ₹3,349 crore, higher than the ₹3,102 crore recorded in the same quarter last year.
Revenue from operations saw a healthy 13% year-on-year increase to ₹42,344 crore. This growth was primarily driven by higher average realizations, reflecting a richer product mix that favours SUVs, coupled with a significantly improved export performance.
However, total volumes remained somewhat muted at 551,000 units. Domestic sales experienced a 5.1% decline as many customers postponed their purchases, likely waiting for the anticipated GST-related price cuts. In a contrasting bright spot, exports surged by 42.2% to an all-time quarterly high of 110,000 units. The company's EBITDA margin for the quarter stood at 10.5%, indicating a 140 basis points decline compared to the previous year.
Looking ahead to the second half of FY26 and beyond, the company's management maintains a positive growth trajectory. They expect the overall passenger vehicle industry to grow by approximately 6% year-on-year, while the small-car segment is projected to expand even faster at around 10% year-on-year, albeit on a low base.
Maruti Suzuki also expects to comfortably exceed its FY26 export guidance of 400,000 units, having already shipped more than 200,000 units in the first half alone. The management has reiterated that achieving a 50% market share in the passenger vehicle segment remains its unwavering long-term goal.
To support this ambitious target, the company has a robust product pipeline, with eight new SUV launches planned until 2031 (excluding the model codenamed 'Victorious'), signaling a fresh and aggressive offensive in a highly competitive market segment.
