Profitability Pressure
In its standalone numbers, despite the healthy top-line growth, profit after tax for Q4FY26 declined 6.9% YoY to ₹3,590.5 crore, down from ₹3,857.3 crore in Q4FY25. Profit before tax was almost unchanged at ₹4,836 crore versus ₹4,861.8 crore a year ago.
The PAT margin slipped to 7.2% of net sales in Q4FY26, compared to 9.9% in Q4FY25, a compression of 270 basis points.
Two main factors drove this decline. Material costs increased to 76.7% of net sales from 74.3%, indicating higher commodity prices for inputs such as steel and aluminium. At the same time, non-operating income declined sharply from 3.9% of net sales to 1.0%, which had a noticeable impact on overall profitability.
Other expenses declined from 13.9% to 11.3% of net sales, partly due to lower spending on sales promotion and advertising. Employee costs also saw a slight decline. These factors supported operating performance but did not offset the impact of higher input costs.
Quarter-on-Quarter Comparison (Standalone)
Compared to Q3FY26, the quarter showed improvement on most operating metrics. Net sales rose 5.4%; operating EBITDA grew 10.5%; and operating EBIT increased 14.9%. EBITDA margin improved by 60 basis points to 12.3%.
Profit after tax declined 5.4% sequentially from ₹3,794 crore to ₹3,590.5 crore, mainly due to lower non-operating income.
Segment Mix: UVs Continue to Lead
In domestic sales for Q4FY26, utility vehicles made up 40.8% of the total sales volume and increased by 14.9% YoY to 2,19,721 units. The subcompact category, which includes vehicles like Baleno, Swift, and Dzire, made up 39.1% of domestic sales and decreased by 5% YoY to 2,10,913 units.
The mini-segment remained nearly flat at 36,247 units. Vans and light commercial vehicles recorded growth of 5.2% and 10%, respectively. Sales to other OEMs increased 7.6%.
For the full year FY26, the utility vehicle segment sold 760,987 units, up 5.7% year-on-year, while the compact segment sold 808,102 units, up 4.8%. The mini segment declined 10.7% for the year to 112,291 units, indicating a shift away from entry-level cars.
Full Year Performance (Standalone)
For the full financial year FY26, Maruti sold 2,422,713 vehicles, up 8.4% from 2,234,266 in FY25. Net sales increased 20.2% to ₹1,74,369.5 crore. Operating EBITDA grew 6.5%, while EBITDA margin declined from 13.9% to 12.3%, indicating pressure from higher material and employee costs.
Profit after tax for the full year stood at ₹14,445.4 crore, up 1% YoY from ₹14,297.6 crore in FY25. Profit before tax declined 2.8% for the year.
Maruti Suzuki India Announces Highest-Ever Dividend
The board recommended a final dividend of ₹140 per share for FY26, compared with ₹135 per share in FY25, subject to shareholder approval at the Annual General Meeting. The company stated in its press release that this marks its highest-ever dividend payout. The record date for the dividend is set on August 7, 2026.
Maruti Suzuki India Share Price Performance
Maruti Suzuki India's share price has gained over 4% on Wednesday, April 29, 2026.
What to Watch Going Forward
The fourth quarter trends for FY26 indicate consistent volume and revenue growth, excellent export results, and progress with utility vehicle models. However, cost challenges will always be present. Prices of commodities have impacted margin levels throughout the majority of FY26, and without improvement from either input cost reduction or further price optimisation, revenue growth could continue to outpace profit growth.
Exports, which increased 34.6% for the full year, provide some diversification beyond the domestic market.
Going forward, volume growth and export expansion remain key drivers. However, cost pressures, especially from commodities, continue to weigh on margins. Unless input costs ease or pricing improves further, the gap between revenue growth and profit growth may continue. The increase in exports during the year provides some diversification beyond the domestic market.
