Maruti Suzuki Posts Record FY26 Revenue, but Profit Stays Flat As Costs Climb

Maruti Suzuki India Limited has reported its highest-ever annual revenue for the financial year ended March 31, 2026, even as profitability remained largely flat. The company's consolidated total revenue from operations rose 19.9% year-on-year to Rs 1,83,382 crore, against Rs 1,52,913 crore in FY2024-25.

Consolidated net profit for the year stood at Rs 14,679.5 crore, marginally higher than Rs 14,500.2 crore reported in the previous financial year. Profit before tax came in at Rs 19,118.5 crore, down 2.6% from Rs 19,620 crore in FY25.

Q4 FY26: Revenue jumps 28%, profit slips

For the quarter ended March 31, 2026, Maruti Suzuki posted consolidated revenue from operations of Rs 52,462.5 crore, a 28.2% increase over Rs 40,904.1 crore in the corresponding quarter of the previous year. Net profit for the quarter, however, declined 6.4% year-on-year to Rs 3,659 crore, against Rs 3,911.1 crore in Q4 FY25.

Sequentially, Q4 net profit was also lower than the Rs 3,879.1 crore reported in Q3 FY26. R C Bhargava, Chairman, Maruti Suzuki, said commodity prices have seen a sharp rise, and the cost of raw materials as a percentage of sales has increased further by 2%, putting pressure on profitability. He also cited mark-to-market losses on treasuries as one of the factors that pulled profit down, noting that M2M losses are notional and do not impact the business.

Cost pressures weigh on margins

The disconnect between strong topline growth and flat profitability reflects mounting cost pressures across multiple line items. Cost of materials consumed for the full year rose 27.9% to Rs 1,11,663 crore, broadly in line with revenue growth.

Employee benefits expense increased 28.8% year-on-year to Rs 9,049.7 crore. The company noted a one-time incremental impact of Rs 593.9 crore recognised in the quarter ended December 31, 2025, on account of the revised wage definition under the four Labour Codes notified by the Government of India in November 2025.

Depreciation and amortisation expenses rose 20.2% to Rs 6,741.7 crore, reflecting the company's ongoing capital investment in new manufacturing capacity.

Capex sustained, balance sheet remains robust

Maruti Suzuki accrued Rs 10,397.6 crore capex in FY26 and plans to further invest Rs 14,000 crore in FY27. The company remains debt-free, with cash flow from operations of Rs 19,099.9 crore for the year, up from Rs 16,180 crore in FY25.

There is a sharp build-up in inventories, which stood at Rs 11,320.6 crore as of March 31, 2026, compared with Rs 6,913.2 crore a year earlier, an increase of 63.7%. The increase outpaces revenue growth of 19.9% for the year by a wide margin.

Final dividend of Rs 140 per share recommended

Maruti Suzuki has recommended a final dividend of Rs 140 per equity share of face value Rs 5 for the financial year 2025-26, aggregating Rs 4,401.6 crore. This is up from Rs 135 per share recommended in the previous year.