Maruti Suzuki Q2 FY25 Profit Falls 17.4%; Shares Down 6%

On Tuesday, Maruti Suzuki India, the country’s largest passenger car manufacturer, announced a net profit of ₹3,069.2 crore for the second quarter of FY25, marking a 17.4% decrease from the ₹3,716.5 crore reported in the corresponding quarter of the previous fiscal year.

The latest quarterly net profit of India’s largest carmaker was affected by a deferred tax liability of ₹1,018 crore. This was partly due to regulatory changes that influenced indexation benefits and adjusted tax rates on capital gains from debt mutual funds. The company had previously disclosed this impact in August. 

Maruti Suzuki Q2 Results Highlights

•  Revenue: Increased by 0.4% to ₹37,202.8 crore from ₹37,062.1 crore, year-on-year (YoY).
•  Net Profit: ₹3,069.2, a fall of 17.4% from ₹3,716.5 crore same quarter last fiscal year.
•  EBITDA: 7.7% to ₹4,417 crore from ₹4,784 crore, EBITDA margin fell by 100 basis points (bps) to 11.9% from 12.9%, YoY.
•  Market Reaction: Maruti Suzuki share price dropped 6% lower at ₹10,800 apiece on the BSE.

Maruti Suzuki Management Commentary

The company in a statement said, “In addition, Maruti Suzuki’s board provided an in-principle approval for the amalgamation of Suzuki Motor Gujarat Private Limited (SMG) with MSIL, effective from 1 April 2025, pending regulatory approvals. SMG, which became a 100 percent subsidiary last year, is expected to streamline operations under MSIL’s umbrella.”

Stock Market Reaction

Maruti Suzuki’s share price dropped by up to 6%, marking its sharpest decline in almost two years.  Maruti Suzuki India shares are presently down by 6%, trading at ₹10,800. 

About Maruti Suzuki

Maruti Suzuki India Ltd (Maruti Suzuki), a subsidiary of Suzuki Motor Corp, is an automobile manufacturer producing and distributing motor vehicles, components, and spare parts. Its offerings are divided into three main categories: vans, passenger cars, and utility vehicles. The company operates two manufacturing facilities located in Gurugram and Manesar, catering to customers across India, Europe, Asia, Oceania, and Latin America.