Maruti Suzuki shares drop over 3% despite record festive sales and GST boost
New Delhi: Shares of Maruti Suzuki India Ltd declined over 3% on Monday, November 3, even as the automaker reported its highest-ever October sales, buoyed by festive demand and recent GST rate cuts.
The fall followed the company’s Q2 FY26 results, which came in below market expectations on operating margins, prompting investors to book profits after a strong six-month rally.
Maruti Suzuki Q2 FY26 Results
Maruti’s standalone net profit rose 7% year-on-year to ₹3,293 crore, while revenue grew 13% to ₹42,101 crore. However, the EBITDA margin slipped to 10.5% from 11.9% a year earlier, impacted by higher raw material, promotional, and marketing costs.
Analysts noted that although volume growth was robust, rising input costs and weaker non-operating income dampened investor sentiment.
Record Car Sales in October 2025
The automaker recorded its best-ever monthly sales of 2,20,894 units, up 7% from last year. Domestic passenger vehicle sales jumped 10.5% to 1,76,318 units, driven by strong demand for compact and utility vehicles. However, sales of mini cars like the Alto and S-Presso declined, reflecting an uneven recovery across segments.
Analysts’ Take: Hold or Buy?
Brokerages expressed mixed views on the stock.
- Jefferies downgraded Maruti to ‘Hold’, citing concerns over margin pressure and market share erosion, even as it acknowledged the positive effect of GST cuts on small car demand.
- HDFC Securities and Motilal Oswal, however, maintained their ‘Buy’ ratings, highlighting strong exports, upcoming launches such as the Victoris and e-Vitara, and improving utilisation levels that could aid margins in H2 FY26.
Management Outlook
Chairman R.C. Bhargava said GST rationalisation has revived small car demand, supporting double-digit growth. The company is also finalising plans for a fifth manufacturing plant and revising its long-term 2030–31 targets in light of the resurgence in small car demand.
However, following a 26% rally in six months, many investors chose to book profits. With margins under pressure and competition intensifying, analysts say the key challenge for Maruti will be sustaining growth once the festive demand cools off.
As of Monday, November 3, Maruti Suzuki shares traded at ₹15,580 apiece, down 3.74% on the NSE.
