Maruti Suzuki India Limited: Comprehensive Stock Analysis Report | Scrolls

by KarNivesh | 16 September, 2025

Maruti Suzuki India Limited continues to hold its crown as India’s largest passenger vehicle manufacturer. With a strong 39.7% market share as of July 2025, the company remains the leader despite facing tough competition and changing customer preferences. However, the big challenge ahead is adapting to the electric vehicle (EV) revolution while defending its position in the SUV and premium car markets.

Strong Business Foundation

Founded in partnership with Japan’s Suzuki Motor Corporation, which still owns 58.28% of the company, Maruti Suzuki has built an unmatched presence in India. Its network of more than 3,000 dealerships and service centers ensures customer reach even in rural and semi-urban areas. The company’s production strength comes from three major plants in Haryana and Gujarat, with a combined capacity of 2.35 million units. A new mega facility in Kharkhoda, Haryana, will begin production in 2025, starting with 2.5 lakh units annually and eventually scaling up to 10 lakh units.

Maruti Suzuki Arena showroom at Kandivali West displaying a Swift car with visible service and valet facilities.

Recent Performance

In the first quarter of FY 2025-26, Maruti sold 5.27 lakh vehicles, showing modest growth of 1.1% year-on-year. Domestic sales dipped 4.5% to 4.31 lakh units, but exports rose sharply by 37.4% to nearly 97,000 units. This strong export push has helped Maruti remain India’s largest car exporter for three years in a row.

Financially, the company reported net sales of ₹36,625 crores, an 8.1% growth compared to last year. Net profit rose slightly by 1.7% to ₹3,712 crores. While margins were under pressure from rising costs, the company’s financial strength remains solid with virtually no debt.

Product Innovation and EV Plans

Maruti has been expanding aggressively into the SUV space. In September 2025, it launched the Victoris SUV starting at ₹10.49 lakh, and also upgraded its Grand Vitara with a new S-CNG variant offering six airbags. But the most awaited launch is the eVitara, Maruti’s first electric SUV, scheduled for September 2025. This marks the company’s formal entry into EVs, where it targets 15% of sales from electric cars by 2030.

Maruti has announced investments of ₹7,000 crores into EV production facilities and research. Over the next five years, it plans to invest more than ₹70,000 crores in new plants, R&D, and technology. The goal is to double production to 40 lakh units annually by 2030.

Financial Growth Story

Between 2021 and 2025, Maruti’s revenue nearly doubled from ₹68,000 crores to ₹1,45,000 crores, with profits soaring from ₹4,400 crores to ₹15,000 crores. Its earnings per share grew impressively from ₹145 to ₹461. The company’s strong equity base and debt-free balance sheet provide confidence for future growth.

However, at the current stock price of ₹15,328, Maruti is valued at a high Price-to-Earnings ratio of 33.2x. Analysts suggest the fair value should be closer to ₹12,000–14,000, meaning the stock is trading at a premium.

Maruti Suzuki Q1 FY26 Performance: Revenue growth of 8.1% with mixed operational metrics

Conclusion

Maruti Suzuki remains a defensive bet for long-term investors due to its dominance, strong financials, and strategic expansion. Key growth drivers include EV launches, exports, and capacity expansion. But challenges like stiff competition, declining small car demand, and delayed EV entry must be carefully watched.

For conservative investors, Maruti offers stability and steady growth. For aggressive investors, however, the premium valuation may not provide significant upside in the short term.