Maruti Suzuki India Limited, the leading automobile manufacturer in India, reported a mix of strong sales and a slight dip in profitability for the fourth quarter of FY 2025. The company, however, benefited from robust export growth.
For the January-March 2025 quarter, Maruti Suzuki achieved a record sales volume of 604,635 units, marking a 3.5% increase compared to the same quarter last year. This growth was fueled by domestic sales of 519,546 units (up 2.8%) and exports of 85,089 units (up 8.1%).
Despite the strong sales, the company experienced a decline in profitability. Net sales for Q4 rose to ₹38,848 crore, up 5.9% from ₹36,697 crore in the same period last year. Operating revenue grew to ₹40,674 crore, from ₹38,235 crore in Q4 FY2023-24. However, net profit fell by 4.3%, dropping to ₹3,711 crore from ₹3,878 crore in Q4 FY2023.
Higher input costs and increased competition in the domestic market impacted profit margins despite the increase in sales volume. The company’s total expenses for the quarter increased significantly, with the cost of materials consumed rising to ₹14,471 crore, up from ₹12,105 crore in the previous year.
EBITDA for the quarter also saw a 9% year-on-year decrease to ₹42,600 crore, falling short of both consensus and Nuvama estimates. The EBITDA margin contracted by 180 basis points year-on-year and 110 basis points quarter-on-quarter, standing at 10.5%.
The company highlighted several factors impacting margins, including expenses from the new Kharkhoda plant, higher manufacturing overheads, increased commodity prices, and rising advertising costs.
Hisashi Takeuchi, Managing Director & CEO, remarked, “Despite challenges, we maintained strong sales momentum in the quarter. However, rising input costs and the competitive market environment placed pressure on profitability.”
For FY 2024-25, Maruti Suzuki achieved its highest-ever sales volume, net sales, and net profit. The company sold 2,234,266 vehicles, marking a 4.6% increase from the previous year. Domestic sales stood at 1,901,681 units (up 2.7%), while exports rose by 17.5% to 332,585 units.
Net sales for the year rose to ₹1,45,115 crore, a 7.5% growth over ₹1,34,938 crore in FY2023-24. The company posted a net profit of ₹13,955 crore, a 5.6% increase compared to ₹13,209 crore in the previous fiscal year.
Maruti Suzuki’s export performance remained strong, maintaining its position as India’s top passenger vehicle exporter for the fourth consecutive year, accounting for nearly 43% of the country’s total passenger vehicle exports.
The Board of Directors has recommended a record dividend of ₹135 per share for FY 2024-25, up from ₹125 per share in the previous year. The dividend, subject to approval at the AGM on August 28, 2025, will be paid to eligible shareholders by September 3, 2025.
Maruti Suzuki’s balance sheet remains strong, with equity rising to ₹940,467 million as of March 31, 2025, compared to ₹839,820 million the previous year. The company also generated healthy cash flow from operations, amounting to ₹140,124 million for the fiscal year.
Looking ahead, Maruti Suzuki faces both opportunities and challenges. While its export strategy has helped offset sluggish domestic market growth, rising material costs and intense competition continue to pose risks. Additionally, the board approved a merger plan with Suzuki Motor Gujarat Private Limited in January 2025, aimed at improving operational efficiency
Following the announcement, Maruti Suzuki’s stock remained stable, reflecting a mixed investor reaction to the strong annual results but quarterly profit pressure. As the Indian automotive market evolves, Maruti Suzuki’s ability to balance growth across domestic and export markets while managing rising costs will be critical in maintaining its market leadership in the upcoming fiscal year.
