Maruti Suzuki Shares Rise Over 1% After Q1; Jefferies Raises Target Price to ₹14,750

Shares of Maruti Suzuki gained over 1% on August 1, following the company’s Q1 FY26 results. The uptick comes as global brokerage Jefferies reiterated its ‘Buy’ rating and raised the stock’s target price from ₹13,600 to ₹14,750.

Key Financial Highlights – Q1 FY26

• Revenue: ₹38,414 crore, up 8% year-on-year (YoY) from ₹35,531 crore

• EBITDA: Fell 11% YoY

• Margins: Declined due to rising input costs

• Other income (non-operating): Nearly doubled in the quarter

While the company posted strong topline growth, the operating margin pressure weighed on overall profitability. However, a notable rise in average selling price (ASP) helped partially cushion the margin decline.

Also Read: India’s Manufacturing PMI Rises to 16-Month High of 59.1 in July

Jefferies’ View: Long-Term Growth Intact

Global brokerage Jefferies remains optimistic about Maruti’s demand outlook, despite trimming the FY25–28 passenger vehicle (PV) industry volume CAGR forecast from 8% to 6%.

Jefferies highlighted:

• Consistent export growth

• Upcoming launch of a new ICE SUV in FY26

• An estimated 12% CAGR in EPS over FY25–28

However, the brokerage also flagged concerns over Maruti’s declining domestic PV market share, even as the automaker continues to dominate volumes.

Stock Performance

Maruti Suzuki stock traded over 1% higher at ₹12,645 in early trade on Thursday after the earnings announcement. The share has seen moderate volatility in recent weeks, tracking broader market cues and auto sector sentiment.

Neutral Analysis

• Revenue growth and improved ASPs reflect steady demand across product lines.

• Margin pressures and EBITDA decline are watchpoints in the near term.

• Jefferies’ upgraded target and export-led optimism may support investor sentiment.

• The planned SUV launch and robust export pipeline are key growth drivers to monitor.

Investors may closely track domestic PV share trends, future product launches, and margin recovery in the coming quarters to reassess their positions.

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