MARUTI

i Q2 FY26 Performance & Strategic Outlook

Strong revenue growth, export momentum, and small car revival support long-term optimism 🔹 Robust Revenue Growth Despite Mixed Volumes - Maruti Suzuki reported a 13.1% year-on-year increase in revenue for Q2 FY26, surpassing market expectations. - While domestic volumes declined by 5.1% YoY due to deferred purchases ahead of the GST rate cut, export volumes surged 42%, resulting in a modest overall volume growth of 1.7%. 🔹 Profitability Under Pressure - The company’s EBITDA margin contracted by 134 basis points YoY to 12%, reflecting increased operational costs. 🔹 GST Cut Sparks Demand Revival - The recent reduction in GST rates on two-wheelers from 28% to 18% has triggered a strong rebound in retail demand. Maruti recorded its highest-ever Navratri sales in a decade, delivering 1.65 lakh vehicles in just eight days. - From September 22 onward, retail sales reached 4 lakh units, nearly doubling from 2.11 lakh units in the same period last year. Notably, small cars led this revival, contributing 2.5 lakh units 🔹 Improving Market Sentiment & Rural Traction - Management expects overall industry volumes to grow by approximately 6% YoY in H2 FY26. - Bookings from non-top 100 cities rose nearly 65% 🔹 Export Growth Continues to Shine - Maruti maintained its leadership in passenger vehicle exports, commanding a 45.4% market share in Q2. - The Fronx became the fastest Indian SUV to reach 1 lakh export units. - Having already crossed 2 lakh export units in H1, Maruti now expects to exceed its FY26 target of 4 lakh units. 🔹 Aggressive Market Share Ambitions - Maruti aims to expand its market share to 50% by FY30–31, up from the current 40–41%. 🔹 Valuation & Investment Perspective - Maruti trades at a reasonable valuation of 23.8x FY27E earnings. - Maruti’s diversified product portfolio and strong export base make it a more attractive long-term investment.