Shares of Maruti Suzuki fell nearly 2 percent on Tuesday after the release of its financial results for the June term (Q1FY26). The stock touched an intraday low of £ 12,416.60, leaving it about 9 percent below its 52-week peak of £ 13,675, in August 2024. In contrast, the share dropped at a low of 52 weeks of £ 10.725 in December 2024. Over the past year, the stock dropped by 4 percent, although it fell 15 percent in 2024. Suzuki achieved a 2 percent increase in the net profit on an annual basis, with a crore of £ 3.712 for the quarter ended June 30, 2025, compared to £ 3,650 crore in the same period last year. Revenue increased by 8 percent to £ 38,414 crore of £ 35,531 crore in Q1FY25. In a regulatory filing, the company emphasized ongoing poor demand in the segment of the domestic passenger vehicle during the quarter. Domestic sales fell 4.5 percent; However, a strong boom in export of 37.4 percent helped to compensate the weakness, resulting in a total increase in 1.1 percent in total sales volume. During the term, Maruti sold a total of 527,861 vehicles, including 430,889 units sold in India and 96,972 units exported. On the operational front, Ebitda fell 11.2 percent to £ 3.997 crore a year-on-year, and Ebitda margin rose to 10.4 percent from 12.7 percent in the previous period. Brokerage views: Mixed sentiment with long-term position Elara Capital maintained a ‘collected’ rating on Maruti Suzuki, while the target price was increased to £ 14,279, which implies an upward potential of 15%. The broker emphasized that the most important trigger for the stock lies in a revival in domestic demand, especially during the festive season. This has projected FY26 domestic volume growth at about 1 percent, in accordance with industry expectations. Strong rural demand contrasts with poor urban demand and affordability pressure in the entry-level segment. The Brokerage revised its FY26-27 estimates 2-3 percent, but suggested valuations until September 2027 with a 25x PE multiple. JM Financial retained a ‘buy’ rating and awarded a £ 14,250 price target, which implies a 15% potential. According to the broker, the ebitda margin of 10.4 percent in Q1FY26 was slightly better than estimates. The realization improved to £ 693,832, aided by a higher CNG vehicle contribution in the SUV segment. However, it was counteracted by higher raw material costs, sales promotions and new plant -related expenses. The firm expects export volumes to remain robust, supported by models such as the e-vitara, Jimny and Fronx. JM Financial provides a decline in ramp costs at the new plant from Q3FY26 and expects a better product mix to support future margins. As a result, it revised the Ebitda margin forecasts to 11.4 percent (FY26E) and 12.0 percent (FY27E), together with modest changes in EPS estimates. HDFC Securities maintained its ‘buy’ rating with a target price of £ 14,990, an indication of an upside potential of 21%. The broker noted that Q1 margins were in line with expectations and that the use of capacity at the Kharkhoda plant should improve. However, it can continue to weigh the performance by FY26, such as increased steel prices and subdued domestic demand. HDFC Sec is more optimistic about FY27, citing potential tail wind of the 8th Payment Commission, tax cuts of the previous union budget and the stir of replacement. On the export front, see HDFC medium -term strength and attribute it to Maruti’s efforts to diversify its export portfolio. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.
Maruti Suzuki shares slip by 2% after the first quarter of the first quarter: Should you buy, sell or hold? | Einsmark news
