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What is the story about?
Maruti Suzuki India Ltd
., India's largest passenger car manufacturer reported its December quarter results, which were lower when compared to expectations. However, adjusting for the new labour laws impact, the numbers present a different picture.
Revenue for the quarter increased by 28.7% from last year to ₹49,892 crore. A CNBC-TV18 poll had pegged topline growth of 32% to ₹50,996 crore. A growth of 18% in the car manufacturer's volumes during the December quarter was a key contributor in the revenue growth seen this time around. Better blended pricing from last year also contributed to the topline growth.
The company had a one-time labour code impact of ₹594 crore during the quarter. However, the number has been classified within the employee benefit expenses and not as a one-time exceptional item. Employee benefit expenses went up to ₹2,692 crore from ₹1,779 crore last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹5,572 crore, growing 10% from last year's figure of ₹5,064 crore. The figure is also lower compared to the CNBC-TV18 poll of ₹6,012 crore. Adjusted for the labour code impact, the EBITDA figure would be in-line with street expectations.
EBITDA margin narrowed by 180 basis points at the end of the December quarter to 11.2% from 13.1% in December last year. The CNBC-TV18 poll had projected the margin figure at 11.8%. Benefits arising out of a favourable product mix was offset by higher raw material costs, which kept margins in check during the quarter. Excluding the labour code impact, the margins would be over 12%.
Net profit for the period stood at ₹3,794 crore, a growth of 3.7% from last year's figure of ₹3,659 crore. Maruti's net profit was also lower with the CNBC-TV18 poll projection of ₹4,424 crore.
Shares of Maruti Suzuki gained in all four quarters of 2025, delivering an annual return of 54%. This was the best performance in a calendar year that the stock had since 2017, during which the stock had gained 83%. Shares are down 11% so far in January.
The management also noted that Suzuki Motor Gujarat Pvt. Ltd. amalgamated with Maruti Suzuki starting December 1, 2025. The financial statements have been restated from April 1, 2025 as that was the appointed date of the scheme of amalgamation.
Shares of Maruti Suzuki are trading 1.8% lower, seeing sharp price moves after the results announcement at ₹14,930.
Revenue for the quarter increased by 28.7% from last year to ₹49,892 crore. A CNBC-TV18 poll had pegged topline growth of 32% to ₹50,996 crore. A growth of 18% in the car manufacturer's volumes during the December quarter was a key contributor in the revenue growth seen this time around. Better blended pricing from last year also contributed to the topline growth.
The company had a one-time labour code impact of ₹594 crore during the quarter. However, the number has been classified within the employee benefit expenses and not as a one-time exceptional item. Employee benefit expenses went up to ₹2,692 crore from ₹1,779 crore last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹5,572 crore, growing 10% from last year's figure of ₹5,064 crore. The figure is also lower compared to the CNBC-TV18 poll of ₹6,012 crore. Adjusted for the labour code impact, the EBITDA figure would be in-line with street expectations.
EBITDA margin narrowed by 180 basis points at the end of the December quarter to 11.2% from 13.1% in December last year. The CNBC-TV18 poll had projected the margin figure at 11.8%. Benefits arising out of a favourable product mix was offset by higher raw material costs, which kept margins in check during the quarter. Excluding the labour code impact, the margins would be over 12%.
Net profit for the period stood at ₹3,794 crore, a growth of 3.7% from last year's figure of ₹3,659 crore. Maruti's net profit was also lower with the CNBC-TV18 poll projection of ₹4,424 crore.
Shares of Maruti Suzuki gained in all four quarters of 2025, delivering an annual return of 54%. This was the best performance in a calendar year that the stock had since 2017, during which the stock had gained 83%. Shares are down 11% so far in January.
The management also noted that Suzuki Motor Gujarat Pvt. Ltd. amalgamated with Maruti Suzuki starting December 1, 2025. The financial statements have been restated from April 1, 2025 as that was the appointed date of the scheme of amalgamation.
Shares of Maruti Suzuki are trading 1.8% lower, seeing sharp price moves after the results announcement at ₹14,930.
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