🚗 Maruti Suzuki Q1 FY26 Results: Export Strength Cushions Domestic Weakness

Stock Snapshot: CMP: ₹12,608 Market Cap: ₹396,398 Cr Rating: Overweight Valuation: Trading at 22.2x FY27E EPS (vs Hyundai’s 25.8x) 🔍 Quarterly Highlights: Revenue rose 7.9% YoY on the back of a 1.1% volume growth and a 6.7% increase in realisation Sequentially, revenue fell 5.7%, and volumes declined 12.7% Realisation per vehicle up 8.1% QoQ due to a richer product mix (more SUVs, fewer small cars) Exports grew 37.4% YoY, while domestic sales fell 4.5% YoY EBITDA margin declined 230 bps YoY to 12%, hurt by: Rising raw material (steel) costs Higher staff and promotional expenses Kharkhoda plant operational costs 📈 Strategic and Market Outlook: Domestic demand remains sluggish, particularly in urban areas Company expects demand recovery in Q2 FY26 aided by: Good monsoon Rate cuts Festive season Export guidance: 20% growth expected Domestic growth forecast: modest 1–2% SUV market share pressure: Maruti SUV sales ↓ 0.8%, while Mahindra ↑ 22% Shift from small cars to SUVs affecting Maruti’s dominance 🚗 Product Pipeline & Transformation: New launches: Grand E-Vitara EV in H1 FY26 1 new ICE model also planned SUV share of PV market now 55%; Maruti is pivoting accordingly Working to shed its "budget car" image and strengthen SUV segment credibility 💹 Investment View: Attractive valuation vs peers (Hyundai) Stock up 8% over the last quarter Strong long-term fundamentals Recommendation: Gradual accumulation advised for long-term investors ⚠️ Risks to Watch: Weak urban demand, especially in entry-level segment High discounting and promotional expenses Margin pressures due to commodity cost inflation