Maruti Suzuki India shares rose more than 4 per cent in early trade on Wednesday following its March quarter results, reflecting a broadly supportive response from brokerages despite some pressure on profitability. The stock was trading at ₹13,443 at 9:32 am on the NSE.
The company reported a standalone net profit of ₹3,590.5 crore for the quarter ended March 2026, down 7 per cent y-o-y from ₹3,857.3 crore in the corresponding period last year. While earnings softened, underlying demand trends and forward guidance helped buoy investor sentiment.
Global brokerage Morgan Stanley maintained an overweight rating with a target price of ₹17,895, noting that exports were a key driver of FY26 outperformance. The brokerage highlighted the management’s guidance of around 10 per cent domestic volume growth in FY27, which is about 200 basis points ahead of its estimates, while cautioning that margins are likely to bottom out in Q1 before improving.
Investec maintained a buy rating, but marginally cut its target price to ₹15,360 from ₹15,465, citing some pressure on earnings estimates. It lowered EPS forecasts for FY27-28E by 1–3 per cent due to margin headwinds, while stating that the company remains operationally well-positioned. It expects upcoming models and export-focused vehicles such as the e-Vitara to drive growth, projecting a 17 per cent and 13 per cent CAGR in EBIT and PAT, respectively, over FY26-28.
Among domestic brokerages, JM Financial said Maruti Suzuki reported EBITDA and EBIT margins of 11.7 per cent and 8.4 per cent respectively in Q4FY26, with a mixed q-o-q trend. Margins were supported by lower employee costs, reduced discounts, favourable forex movements and operating leverage benefits from inventory build-up. These gains were partly offset by higher commodity costs, model launch expenses and seasonal cost variations.
The brokerage also pointed to strong domestic demand, particularly in the entry-level segment, supported by low dealer inventory of 12 days and a robust order book of around 190,000 vehicles. It expects exports to remain strong, driven by models such as the Jimny, Fronx and the upcoming e-Vitara. JM Financial has revised its volume growth assumptions upward and marginally increased its earnings estimates, maintaining a buy rating with a target price of ₹16,570.
Motilal Oswal said a GST rate cut has helped revive demand for small cars, improving affordability for price-sensitive buyers. The brokerage expects Maruti Suzuki to achieve 10 per cent domestic volume growth in FY27E, aided by a strong order backlog and a healthy pipeline of new launches. It believes this could support market share recovery and trigger a re-rating of the stock. Motilal Oswal reiterated a buy rating with a target price of ₹15,529, valuing the company at 25x FY28E EPS, and expects a 16 per cent earnings CAGR over FY26-28.
Overall, while near-term margin pressures persist, brokerages remain constructive on Maruti Suzuki’s growth outlook, underpinned by strong demand visibility, export momentum and operating leverage benefits.
Published on April 29, 2026