Maruti Suzuki Q4 FY25 Results: EV launch Sobers Margin Slump

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Maruti Suzuki Q4 FY25 Results: Net Profit Dips 4.3%, Margins Disappoint, Experts Weigh In

By S Jha

New Delhi, April 26, 2025: Maruti Suzuki India Ltd., the country’s largest carmaker, reported a 4.3 per cent year-on-year decline in its standalone net profit for the fourth quarter of FY25 (January-March 2025), dropping to ₹3,711.1 crore from ₹3,877.8 crore in the same period last year.

Despite a 6.4 per cent rise in revenue to ₹40,673.8 crore from ₹38,234.9 crore, the company faced margin pressures, with EBITDA falling nine per cent to ₹4,264.7 crore and margins contracting to 10.5 per cent from 12.3 per cent.

The board declared a final dividend of ₹135 per share, the highest ever, aggregating to ₹4,244.4 crore. The results, announced on April 25, triggered a mixed response from market analysts and experts, with many highlighting the significant miss on margins and profitability estimates.

Maruti Suzuki sold 604,635 units in Q4, its highest-ever quarterly sales, driven by a 2.8 per cent rise in domestic sales to 519,546 units and an 8.1 per cent increase in exports to 85,089 units.

However, higher marketing expenses, discounts, and depreciation costs from the new Kharkhoda plant weighed on profitability.

Srishti Sharma on X noted, “Maruti Suzuki Q4 FY25 numbers big miss on margins. PAT slightly below; Revenue in line… Higher depreciation and other expenses impacted margins as expected.”

Her post underscored the market’s disappointment with the margin contraction, a key metric for investors. Similarly, Yatin Mota commented, “MARUTI Q4 margins miss is big. Other expenses have risen but marginally. Miss seems decent. No one offs in foot notes.”

Mota’s analysis pointed to the absence of one-time charges, suggesting structural cost pressures as the primary culprit.

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Despite the profit dip, Maruti reported a 5.6 per cent rise in full-year FY25 net profit to ₹13,955 crore from ₹13,209 crore in FY24, supported by a 4.6 per cent growth in domestic sales to 1.901 million units. The company maintained its position as India’s top passenger vehicle exporter, contributing 43 per cent of the country’s total PV exports.

CA Ram provided a balanced view on X, stating, “Maruti Suzuki India – Q4 FY25 Results. Sequential growth in revenue and profit, but EBITDA and margin missed estimates.” His post acknowledged the quarter-on-quarter improvement while flagging the shortfall against estimates.

Maruti’s cautious outlook for FY26, projecting muted domestic demand and industry growth of 1-2 per cent as per SIAM, added to concerns. Chairman RC Bhargava noted stronger rural sales but weak urban demand, particularly in the small car segment, which constitutes a significant portion of Maruti’s portfolio.

He remained optimistic about exports, stating, “We are doing better because exports have been very buoyant.”

Motilal Oswal maintained a ‘Buy’ rating with a target price of ₹14,050, citing Maruti’s strong positioning in the passenger vehicle segment, while HDFC Securities set a target of ₹14,858. The upcoming launch of Maruti’s first electric vehicle (EV) by September 2025, with an annual production target of 70,000 units (mostly for export), was highlighted as a potential catalyst.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.