Maruti Suzuki Shares Face Target Cuts After Q2 Profit Slump
- Maruti Suzuki's Q2 net profit fell 26% year-on-year to Rs 2,466 crore.
- Revenue from operations grew 26% to Rs 53,356 crore with record sales of 6.97 lakh units.
- Brokerages including Jefferies, Nomura, and Elara Capital cut target prices following the results.
- Profit decline was driven by higher commodity prices and mark-to-market losses on investments.
- Maruti Suzuki shares are down over 31% year-to-date as of 28 October 2026.
Maruti Suzuki announced that its consolidated net profit fell 26% year over year to Rs 2,466 crore in the July-September quarter of FY27, leading major brokerages to adjust their target prices. Jefferies and Nomura are among the firms that have reduced their valuations for the automaker following the earnings announcement.
Univest released a comparative analysis of Maruti Suzuki and Bajaj Auto on 27 October 2026, which assessed their second-quarter results, margins, and key market levels. This shift in brokerage sentiment follows the company's recent profit performance.
Record sales volume fails to offset margin pressure
Operating revenue rose 26% year over year to Rs 53,356 crore for the quarter, up from Rs 42,344 crore in the comparable period a year earlier. The company achieved record sales of 6.97 lakh units, representing a 26.5% year-on-year increase.
Small car sales rose nearly 40% and SUV sales grew more than 68% compared to the previous year. Despite these volumes, operating profit (EBIT) fell 17% year-on-year to Rs 2,804 crore.
Commodity prices and investment losses weigh on earnings
Higher commodity prices, driven by the conflict in West Asia, contributed to the decline in net profit for the July-September quarter. The company also reported a significant drop in non-operating income, which resulted from mark-to-market losses on its surplus investments.
Brokerage outlooks suggest potential upside despite estimate cuts
Jefferies said the revised target price for the company suggests an approximate 18% upside from the previous closing price of Rs 11,450. Nomura said its revised target price suggests roughly a 14% upside potential.
Nomura noted a strong response to the new Brezza, where first-time buyers accounted for 51% of sales. Elara Capital said its new target price implies a 34% upside potential.
Elara Capital reduced its FY27-29 EBITDA estimates by 4-9% and its earnings per share estimates by 7-15%.
Shares trade near 52-week lows amid year-to-date decline
Maruti Suzuki shares were trading at ₹11477.00 on the National Stock Exchange as of 1:03 pm IST on 28 October 2026. This represents a price increase of ₹27.00, or 0.24%, from the previous close of ₹11450.00. During the session, the stock reached a high of ₹11590.00 and a low of ₹11250.00, with a trading volume of 556244.
Business Today reported on 27 October 2026 that the shares were trading near a 52-week low ahead of the second-quarter earnings results. The company's market capitalisation exceeds Rs 1.45 lakh crore.
Over the past week, the stock has risen a little over 2%, though it has fallen about 5% in the past month. Year-to-date in 2026, the shares have declined more than 31%, with a roughly 30% decline recorded over the past year. Longer-term performance data shows the stock has delivered a little over 8% total return in three years and a 55% return in five years.
Subros shares rally on new Maruti Suzuki supply order
Subros shares increased by 10% on 28 October 2026. This market movement followed the company securing an HVAC supply order from Maruti Suzuki valued at ₹1,225 crore.
Maruti Suzuki's role as India's largest automaker
The company was established in February 1981 as Maruti Udyog Limited, a joint venture between the Government of India and Suzuki. Suzuki was the first Japanese automaker to invest in India.
Frequently Asked Questions
- Maruti Suzuki shares see target price cuts by Jefferies, Nomura, other brokerages after Q2 net profit drop (economictimes.indiatimes.com)
- Maruti Suzuki shares see target price cuts by Jefferies, Nomura, other brokerages after Q2 net profit drop (m.economictimes.com)
- Maruti Suzuki (Wikipedia — background) (en.wikipedia.org)
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