Maruti Suzuki Share: Will the Auto Firm’s Profit Take a Hit After Unveiling the eVitara?

SYNOPSIS: Maruti Suzuki launched the e-VITARA at competitive BaaS pricing to drive EV adoption, but Nomura cautioned on profitability risks, projecting moderate volumes and potential pressure.

During Wednesday’s trading session, shares of India’s largest passenger car manufacturer were in focus on the stock exchanges, after brokerage firm Nomura said the automaker’s newly launched EV pricing is competitively priced but may not be profitable.

With a market cap of Rs. 4.76 lakh crores, shares of Maruti Suzuki India Limited hit an intraday low at Rs. 15,075.95 on BSE, down by around 1 percent, as against its previous closing price of Rs. 15,180.3. The stock has delivered positive returns of around 19 percent in the last one year, but has fallen by over 6 percent in the last one month.

Brokerage Target & Outlook

On 17th February, Maruti Suzuki India Limited officially commenced sales for the e-VITARA Battery Electric Vehicle (BEV). The model has been introduced with an introductory Battery-as-a-Service (BaaS) price starting at Rs. 10.99 lakh, along with a Battery EMI of Rs. 3.99 per kilometre. 

Customers can book the vehicle and experience test drives by paying an initial amount of Rs. 21,000 through NEXA showrooms or via the NEXA website. The e-VITARA was first unveiled at the Bharat Mobility Auto Expo 2025, marking the company’s entry into the rapidly expanding mid-size EV segment.

Amidst this, the brokerage firm Nomura has taken a cautious stance on the pricing strategy. While it acknowledged that the e-VITARA is competitively priced to support EV adoption, it expressed concerns regarding potential profitability. Despite this, Nomura has maintained a ‘buy’ rating on the stock, with a target price of Rs. 16,118 per share.

According to the brokerage, the attractive BaaS pricing structure could help accelerate EV penetration in the domestic market, but it added that the current pricing may not be profitable. The analyst has factored in combined domestic volumes of 12,000 units in FY26 and 24,000 units in FY27 for the e-VITARA and its Toyota counterpart. Nomura further noted that there could be incremental upside if customers opt for the outright purchase model at prices starting around Rs. 16 lakh.

Financials

For the quarter, the company posted a standalone revenue from operations of Rs. 49,892 crores, reflecting a sequential growth of around 18 percent QoQ compared to Rs. 42,332 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew around 29 percent from Rs. 38,752 crores recorded in Q3 FY25.

Net profit for the quarter stood at Rs. 3,794 crore, indicating a significant increase of around 15 percent QoQ from Rs. 3,303 crores in Q2 FY26, as well as a rise on a year-on-year basis by nearly 4 percent from Rs. 3,659 crores reported in Q3 FY25. PAT was impacted by a one-time provision of around Rs. 594 crores on account of the New Labour Codes.

The company highlighted that the implementation of GST reforms led to a sharp recovery in the Indian car market, with growth largely driven by the small car segment. During the quarter, Maruti Suzuki recorded its highest-ever domestic sales of 5,64,669 units, increasing by 97,676 units from 4,66,993 units in Q3 FY25. Notably, the small cars segment falling under the 18 percent GST bracket contributed 68,328 units to this incremental growth.

Total sales during the quarter also reached a record high of 6,67,769 units, including 1,03,100 units of exports. In comparison, total sales in the corresponding quarter last year stood at 566,213 units, comprising 466,993 units of domestic sales and 99,220 units of exports.

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Written by Shivani Singh

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