Maruti Suzuki Q1 FY27 Results (NSE: MARUTI)
Signal: Growth reaccelerated
The read
Revenue growth of 35.9% YoY is largely the effect of the Suzuki Motor Gujarat amalgamation (restated prior year), masking a 9.1% PAT decline as EBITDA margin slipped 20bps to 11.8%. Raw material costs consumed 76.9% of revenue, up ~1.4pp YoY, while other income remained a large 43% of PBT, masking underlying operational weakness. The company flagged an unquantifiable EPR obligation as a contingent liability (not booked). The margin trajectory remains under pressure (4 of the last 5 quarters saw contracting or flat OPM).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹52,469.8 Cr | 35.9% | 0.0% |
| EBIT | ₹4,407 Cr | -11.1% | |
| Net profit | ₹3,446.9 Cr | -9.1% | |
| EPS | ₹109.63 | -9.1% | |
| EBIT margin | 11.8% |
P&L walk
Revenue jumped 35.9% YoY to ₹52,469.8 Cr (restated to include SMG for full comparability), but PAT fell 9.1% YoY as EBITDA margin contracted 20bps to 11.8%, dragged by higher raw material costs (+44% YoY in absolute terms) and a slight decline in other income. Depreciation grew 14.5% YoY, in line with capex, while finance cost rose 35.7%.
Key positives
- Revenue grew 35.9% YoY to ₹52,469.8 Cr, driven by the SMG amalgamation and volume recovery.
- Employee cost grew only 20.2% YoY vs revenue 35.9%, indicating some operating leverage.
- Cash-rich balance sheet (D/E 0) and low finance cost of ₹63.5 Cr.
Key concerns
- PAT declined 9.1% YoY to ₹3,446.9 Cr despite revenue surge; EBITDA margin contracted to 11.8% (-20bps YoY).
- Raw material cost % of revenue at 76.9% (up ~1.4pp YoY) – input cost headwind not fully passed through.
- Other income comprised 43% of PBT, highlighting dependence on non-operating earnings.
- EPR obligation uncertainty (End-of-Life Vehicles Rules 2025) not yet accounted for – potential future cost.
Earnings quality: includes non-operating other income
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