Maruti Suzuki India Ltd.Record Sales Amid GST-Driven Surge

Maruti Suzuki delivered a stellar Q3 FY26 with record quarterly net sales of ₹475 billion, up 29.1% year-on-year, driven by GST reforms announced in August that catalyzed a dramatic industry turnaround.

The company posted record retail sales of 684,000 units as domestic volume growth rebounded sharply to 22% from a 5.8% decline in H1 FY26. Net profit reached ₹38 billion, up 4.1%, though impacted by a one-time ₹594 crore labour code provision. Operating margins compressed slightly to 8.1% due to commodity headwinds, particularly precious metals creating 60 basis points pressure, though management chose to absorb costs rather than raise prices post-tax cuts.

The company remains supply-constrained with just 3-4 days network inventory and a healthy order book of 175,000 vehicles. Management accelerated capacity expansion plans, with 500,000 units of new capacity coming online by mid-FY27 through the Kharkhoda plant and Gujarat D-line. However, management cautioned that Q3 included postponed and preponed demand, requiring reassessment of sustainable levels in coming months.