The country’s largest passenger vehicle maker reported double-digit revenue growth for the quarter, but profitability was weighed down by a sharp decline in other income and a higher tax outgo.
Elevated raw material costs also continued to pressure margins, although some of the impact was offset through pricing and cost controls.
HSBC has maintained a ‘buy’ rating on the stock with a price target of ₹15,000, citing that the company has so far managed commodity inflation well.
According to the brokerage, Maruti’s volume growth guidance of 10% was positive and underscores the resilient demand environment. It also pointed out that valuations at around 20x FY28 estimated earnings appear reasonable, with potential tailwinds from the 8th Pay Commission.
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Jefferies has retained a ‘hold’ call with a target of ₹13,800. It said that EBIT for the March quarter rose 30% year-on-year, broadly in-line with estimates, while profit declined 3%, missing expectations due to lower financial income.
The brokerage added that while passenger vehicle demand remains steady and the company is guiding for 10% domestic volume growth in FY27, market share has slipped to a 13-year low amid a shift in consumer preference towards SUVs.
UBS has also maintained a ‘neutral’ stance and trimmed its price target to ₹13,970.
It flagged that while revenue growth remained strong, margin expansion was limited as raw material pressures were only partly offset by lower discounts and other cost measures.
Management expects 10% domestic volume growth in FY27 and an improving mix of first-time buyers, now at 51% compared to 42% in the first half of FY26.
Export outlook, however, remains contingent on demand in key markets amid ongoing geopolitical uncertainties. The company has also raised its FY27 capital expenditure guidance to ₹1,400 crore to support capacity expansion and remains on track to launch seven SUVs by FY30, although timelines may be uneven.
Dealer inventory currently stands at around 12 days.
Out of the 49 analysts covering Maruti, 43 have a ‘buy’ rating on the stock, four have a ‘hold’ rating, and two recommend ‘sell’. BoB Capital has the highest price target at ₹18,821, followed by Elara at ₹18,686.
The stock ended the previous session 2.51% lower at ₹12,890 and has declined 23% so far this year.
