Maruti Suzuki India (MARUTI) Q2 26/27 earnings summary

Executive summary

• Q2 sales reached a record 696,654 units, up 26.5% YoY; domestic sales were 588,535 units, up 33.6%, exports were 108,119, down 2.1%, and market share rose 2.2pp to 40.8%.

• Domestic wholesale volumes exceeded 565,000 units, up 37.8%; retail sales were 537,000 units, September-end network inventory was 17 days, and pending orders rose to 270,000 by October 20.

• H1 sales volume increased 27.9% YoY to 1,379,378 units; domestic sales rose 31.6% to 1,146,523 and exports increased 12.2% to 232,855.

Financial highlights

• Q2 standalone net sales were INR 506,155 million; operating EBITDA was INR 47,633 million, EBIT INR 28,037 million and PAT INR 24,149 million.

• Q2 standalone operating EBITDA, EBIT and PAT declined 6.3%, 17.1% and 26.9% YoY, respectively; net sales grew 26.1%.

• H1 standalone net sales were INR 1,005,746 million and PAT INR 57,670 million; sales grew 31.0%, while EBITDA declined 5.5% and PAT 18.3%.

• Q2 consolidated revenue was INR 537,691 million and profit INR 24,661 million, versus INR 432,904 million and INR 33,490 million a year earlier; H1 revenue was INR 1,080,123 million and profit INR 59,130 million.

• Q2 net sales rose 1.3% sequentially and operating EBITDA 10.5%; PBT fell 27.1% and PAT 28.0%.

Outlook and guidance

• H2 domestic sales growth of at least 10% is expected; with exports near flat, total H2 growth is expected at 7%–10%.

• Full-year volume growth in the mid-teens was affirmed; exports are expected to at least match last year, subject to logistics constraints.

• H2 pricing actions will be calibrated; margin recovery depends partly on commodity movements, and no forward margin guidance was given.