Maruti Suzuki reported a 4.3% year-on-year decline in its net profit to Rs 3,711 crore for Q4 FY25. The company also declared a dividend of Rs 135 per share, providing some cheer to shareholders despite the earnings miss.
Mixed Views on Maruti Suzuki After Q4 Margin Miss; BoFA Stays Bullish
Maruti Suzuki’s Q4 results have drawn a range of reactions from top brokerages, largely highlighting margin pressures and a cautious near-term outlook.
BoFA Securities has maintained a Buy rating with a target price of Rs 14,000, despite Maruti missing margin expectations. The company reported an EBIT margin of 8.3%, down 1.2 percentage points year-on-year. The miss was attributed to start-up costs at the new Karkhoda plant (30bps impact), lumpy year-end spends (90bps impact), and a weak model mix.
BoFA expects the drag from the new plant to persist into Q1 FY26 but remains optimistic beyond that, highlighting two positives:
1. A new SUV launch confirmed for FY26
2. A solid export growth guidance of 20%+
On the other hand, Nomura remains Neutral with a target price of Rs 12,886. Nomura notes that margin pressures are a key risk and that 4Q margins came in below expectations mainly due to higher other expenses. They flagged that while domestic growth outlook looks tepid, exports are expected to grow 20% year-on-year. Management guided for a 1%-2% growth in the domestic car industry in FY26, with Maruti aiming to outperform the industry.
Similarly, JP Morgan stays Neutral with a target price of Rs 12,800. They called Q4 a miss, with EBIT 14% lower than their estimates. This was despite a reduction in discounts (-40bps QoQ) and 7% volume growth QoQ. JP Morgan warned that FY26 could be weaker than FY25, as the company will continue to ramp up its new plant at a time when volume growth is soft.
Goldman Sachs has also maintained a Neutral rating, setting a lower target price of Rs 12,000. Revenue and EBITDA grew +6% and -9% YoY respectively, missing Bloomberg consensus by -1% and -13%. EBITDA margin came in at 10.5%, a 160bps miss, led by higher-than-expected promotions, repairs, maintenance costs, digital initiatives, and start-up costs at the new plant.
Goldman also noted that Maruti expects the domestic car industry growth to slow to 1%-2% in FY26, but is confident it will outperform the market. Consequently, Goldman cut its FY26–FY28 EPS estimates by 2%-8%.
Maruti Suzuki Shares Have delivered flat performance in last 6 months while in last 1 year shares of Maruti Suzuki limited given negative 8% return amid ongoing Weakness in Indian economy and slowdown in Auto Sector
Disclaimer:The view expressed in this article are the views of brokerages not the sensexnifty authors and This article is only Information Purpose
