Maruti Suzuki Results: How Did This Auto Stock Perform in Q3?

SYNOPSIS: Maruti Suzuki India Limited delivered record volumes and revenue growth in Q3 FY26, but margin pressures and market-share concerns led brokerages to cut targets, even as demand outlook remains supportive.

During Thursday’s trading session, shares of India’s largest passenger car manufacturer slipped by over 3 percent on the stock exchanges, extending the losing streak to a 7th consecutive session. The company recently announced its Q3 FY26 results, and below is a closer look at its financial performance along with key brokerage views.

With a market cap of Rs. 4.55 lakh crores, shares of Maruti Suzuki India Limited hit an intraday low at Rs. 14,370 on BSE, down by around 3.4 percent, as against its previous closing price of Rs. 14,876.8. 

The stock has delivered positive returns of over 21 percent in the last one year, but has fallen by around 13 percent in the last one month. The sustained sell-off has pushed the stock to a five-month low.

Financials

Maruti Suzuki India Limited announced the financial results for the third quarter of FY26 on Thursday during market hours, as per the latest regulatory filings with the stock exchanges.

For the quarter, the company posted a standalone revenue from operations of Rs. 49,892 crores, reflecting a sequential growth of around 18 percent QoQ compared to Rs. 42,332 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew around 29 percent from Rs. 38,752 crores recorded in Q3 FY25.

Net profit for the quarter stood at Rs. 3,794 crore, indicating a significant increase of around 15 percent QoQ from Rs. 3,303 crores in Q2 FY26, as well as a rise on a year-on-year basis by nearly 4 percent from Rs. 3,659 crores reported in Q3 FY25. PAT was impacted by a one-time provision of around Rs. 594 crores on account of the New Labour Codes.

The company highlighted that the implementation of GST reforms led to a sharp recovery in the Indian car market, with growth largely driven by the small car segment. During the quarter, Maruti Suzuki recorded its highest-ever domestic sales of 5,64,669 units, increasing by 97,676 units from 4,66,993 units in Q3 FY25. Notably, the small cars segment falling under the 18 percent GST bracket contributed 68,328 units to this incremental growth.

Total sales during the quarter also reached a record high of 6,67,769 units, including 1,03,100 units of exports. In comparison, total sales in the corresponding quarter last year stood at 566,213 units, comprising 466,993 units of domestic sales and 99,220 units of exports.

Multiple Brokerage Views

Following the company’s recent earnings and continued weakness in the stock price, several brokerages have revised their earnings estimates and target prices. That said, most brokerages remain constructive on near-term demand conditions, even as margin-related concerns persist.

Global brokerages – Jefferies, Morgan Stanley and Citi – all lowered their price targets. Jefferies cut its target price by 9 percent to Rs. 16,000 from Rs. 17,500, while Morgan Stanley revised its target to Rs. 17,804. Citi, while maintaining its ‘buy’ rating, reduced its target price by over 4 percent to Rs. 18,200 from Rs. 19,000.

Jefferies continues to remain positive on India’s PV demand outlook and the company’s export growth, citing easing liquidity conditions, GST cut impacts, upcoming government wage hikes and improving vehicle registrations. However, the brokerage remains cautious on any meaningful improvement in domestic market share or margins, and pointed out that the company’s PV market share has slipped to a 13-year low of around 40 percent over 9MFY26, reflecting the industry’s structural shift toward SUVs – a segment where the company has historically had a weaker presence.

While the newly launched SUV Victoris has witnessed early traction, Jefferies believes margin expansion is likely to remain limited as the company prioritises regaining volumes amid intense competition and rising commodity prices. As a result, the brokerage cut its FY26-FY28 earnings estimates by 3-5 percent and reiterated its preference for M&M within the PV space.

Morgan Stanley, on the other hand, believes the company’s strong volume growth and valuations, currently below the sector median, support its ‘overweight’ stance. That said, it trimmed its FY26 and FY27 earnings estimates to factor in sustained commodity cost pressures, which could limit near-term margin expansion.

Further, Citi highlighted that although commodity costs are trending higher, management expects operating leverage from higher volumes to help offset margin pressures. The brokerage modestly reduced its EBIT and profit estimates for FY26-FY28 but continues to view the company as well-positioned, supported by improving demand conditions and stabilising market share trends.

Separately, HSBC maintained its ‘buy’ rating with a price target of Rs. 18,000 per share, noting that even if the stock corrects further in the near term, it remains an attractive long-term story. HSBC added that market expectations for FY27-FY28 earnings may need to be tempered to account for commodity headwinds and capacity additions.

Overall, Maruti Suzuki’s strong volume growth and healthy demand environment provide a solid operating backdrop, but near-term margins, competitive intensity in SUVs and rising input costs remain key variables shaping investor expectations.

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