Maruti Suzuki India Ltd. share price target

We stay positive on Maruti Suzuki India Limited (MSIL), as we expect volumes to regain pace going forward, led by GST rate cuts, festive demand and new launches.

The recent reduction in GST rates from 28% to 18% across most segments in the auto sector may inject fresh demand momentum. This is in addition to the recent rationalisation of personal income tax slabs, interest rate cuts and the upcoming Pay Commission revisions.

Upgrading the stock HOLD to BUY and arriving at a TP of Rs 16,425 per share (Earlier: Rs 12,635/share), implying an upside of 12% from CMP.

On 26th Aug 2025, Hon’ble Prime Minister Shri Narendra Modi inaugurated
the start of production of Maruti Suzuki’s first Battery Electric Vehicle (BEV),
the e-Vitara, at Suzuki Motor Gujarat Private Limited (SMG), a wholly owned
subsidiary of Maruti Suzuki India.

Revenue: Consolidated revenue from operations grew by 7.9% YoY (-5.7% QoQ) to INR 3,86,052 Mn., above our estimates, led by sharp improvement in realizations (+6.9% YoY) and a stronger momentum in exports.

We maintain our HOLD rating on the stock.

MSIL’s 1QFY26 PAT of INR37.1b was ahead of our estimate of INR29.5b, led by higher-than-expected other income, even as EBITDA margin was largely in line with estimates.

*over or under performance to benchmark index Maruti Suzuki India Ltd. (MSIL) is an automobile manufacturer, in which Japanese car and motorcycle manufacturer Suzuki Motor Corporation owns 56.2%. MSIL is one of...

We maintain our HOLD rating on the stock.

MSIL reported muted Q4FY25 performance with lower than anticipated realizations and high other expenses weighed in on overall profitability. Its standalone revenue grew by 6.4% YoY, marginally lower than PLe while it was in-line with consensus estimates. Realization increased by 2.8% YoY, however, UV mix declined sequentially leading realization to decline by 1% QoQ. Gross profit increased by 4.5% YoY while margin contracted by 50bps YoY to 28.1%. Higher other expenses due to the new SMG plant dragged EBITDA lower by 9%...

MSIL reported ~9% YoY/5% QoQ lower EBITDA on Kharkhoda plant costs, higher advertising, and lumpy other expenses; margins declined by 113bps QoQ to 10.5%, with underlying margins adjusted for lumpy expenses at ~11.4% (~5% miss vs Consensus).

Maruti Suzuki’s Q4 standalone EBITDA declined 9% y/y to Rs42.6bn, below our estimated Rs49.3bn. Domestic volumes would clock a 5% CAGR over FY25-27 due to higher income levels (income-tax cuts), a rebound in first-time buyers, rural demand, launches and lower finance costs.

Maruti Suzuki (MSIL)’s 4QFY25 margin came in 110bp below our estimate at 10.5%, largely due to the lumpy nature of multiple costs that affected its performance.

Company Update

MSIL’s (Maruti Suzuki India Ltd) Q3FY25 performance was decent with revenue inline of estimates, while EBITDA margin beat expectations with q-o-q rise in gross margins.

We maintain our HOLD rating on the stock.

Broadly in line with our estimate, Maruti Suzuki’s Q3 standalone EBITDA grew 14% y/y to Rs44.7bn. Domestic volumes would clock a 6% CAGR over FY25-27 due to higher income levels, rebound of firsttime buyers, rural demand, launches and greater support by financiers.

Maruti Suzuki India (MSIL) reported an in-line performance during 3QFY25. Margin dilution in Q3 was restricted to 30bps QoQ despite the rise in discounts due to favorable operating leverage benefits.

We estimate a forward P/E multiple of 25x based on FY27E EPS of Rs 570, resulting in a target price of Rs 14,250 per share.