Maruti Suzuki posts record annual profit at Rs 14,679.5 cr on best-ever sales

The country's largest carmaker Maruti Suzuki India (MSI) on Tuesday reported a record annual consolidated net profit of Rs 14,679.5 crore in FY26, a year-on-year growth of 1.24 per cent, riding on its best-ever annual sales of over 24.22 lakh units, propelled by GST rate reduction. The company had posted a consolidated net profit of Rs 14,500.2 crore in the previous fiscal, Maruti Suzuki India said in a regulatory filing. The total revenue from operations in FY26 was Rs 1,83,316 crore compared to Rs 1,52,913 crore in FY25, it added. Its total vehicle sales in FY26 were a record 24,22,713 units against 22,34,266 units in FY25, the company said. Domestic sales in FY26 stood at 19,74,939 units, its highest ever, compared to 19,01,681 units in FY25, while exports were also at a record of 4,47,774 units against 3,32,585 units a year ago, it added. ''It was a record year for us in almost every respect. It became a record year largely because of the GST reforms and the reduction in the GST rate, which the government and the finance minister brought about from September last year,'' Maruti Suzuki India Chairman RC Bhargava told reporters in an earnings call. The GST rate cut had ''a very, very big effect, not only on the automobile sector, but in many other sectors'', he said, adding that ''we are very happy that we have had this opportunity to grow in the second half of the year''. The board of directors has recommended a record dividend of Rs 140 per share for the year, compared to Rs 135 per share in 2024-25. In the fourth quarter, the company reported a 6.45 per cent decline in its consolidated net profit to Rs 3,659 crore due to mark-to-market impact despite record vehicle sales. The auto major had posted a net profit of Rs 3,911.1 crore in the same quarter of the preceding fiscal. The net profit declined primarily due to mark-to-market impact, the company said, adding that there was lower non-operating income, a notional loss due to a change in bond yields, which can be recovered at a later stage. Bhargava said two factors -- rising commodity prices and mark-to-market on debt instruments -- have prevented an increase in profits. ''Commodity prices went up sharply this year, and material cost went up by a little bit over 2 per cent of sales compared to what it was last year and 2 per cent is a huge number, and that has brought down the profit level,'' he noted. On the mark-to-market on debt instruments on which the company invests its money, he said these keep changing and are ''all accounting entries'', but the company will get its full value when the security is mature. Its total revenue from operations in the fourth quarter rose 28.2 per cent to Rs 52,462.5 crore in the fourth quarter against Rs 40,920.1 crore in the same period of 2024-25, the company said. Net sales crossed the Rs 50,000 crore milestone for the first time in the fourth quarter, it added. Total expenses in the quarter under review were higher at Rs 48,125.3 crore compared to Rs 37,585.5 crore in the year-ago period, the company said. During the fourth quarter, the company said, it recorded its highest-ever total quarterly sales of 6,76,209 units, up 11.8 per cent from the year-ago period. Domestic sales stood at 5,38,994 units and exports at an all-time high of 1,37,215 units, Maruti Suzuki India said. The company, however, said its sales were restricted by a limitation in the production capacity as evidenced by about 1.9 lakh pending customer orders at year's end, including nearly 1.3 lakh orders for small cars in the 18 per cent GST bracket. In addition, the dealer inventory was at a low of about 12 days' stock, it added.

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