After being hit by a one-time provision of Rs 594 crore on account of the new Labour Codes, the country’s largest carmaker Maruti Suzuki India (MSIL) on Wednesday reported a 4% year-on-year increase in consolidated net profit to Rs 3,879 crore for the December quarter of FY26. Total revenue from operations surged to Rs 49,904 crore in Q3FY26 from Rs 38,764 crore in the year-ago period.
The company said it achieved its highest-ever quarterly domestic sales of 564,669 units as compared to 4,66,993 units in Q3 of the previous year, an increase of 97,676 units. On a standalone basis, the company registered its highest-ever quarterly net sales of Rs 47,534 crore, up from Rs 36,802 crore in the same period a year ago.
Going forward, MSIL said that it will reassess in about three months to figure out what will be the sustainable level of demand after the euphoria of the GST rate cut is over. The company, which exports its electric vehicle to Europe, sees a big positive in the India-EU FTA and believes that the trade deal allows the country to participate in the global arena.
"Short term, of course, we are constrained by supply, and we are struggling to meet demand as much as possible. We have a healthy order book, our share within the SUV segment is growing, so it's all positive…Having said that, the query remains in our mind, what is the sustainable level of demand after the euphoria (of GST rate cut) is over," Maruti Suzuki India Senior Executive Officer Rahul Bharti told analysts in an earnings call.
The company ended the third quarter with a very low network inventory of just about three to four days, along with a healthy order book of around 1.75 lakh vehicles, he added.
When asked about the India-EU FTA, Bharti said, "The details that have come out seem to be quite positive. From whatever we have heard, the opening up has been done only above 15,000 euro CIF price, which translates to something like Rs 25 lakh in India."