Maruti Suzuki India Ltd (MSIL), the country’s largest passenger vehicle maker, reported a 27% year-on-year (YoY) decline in net profit to ₹2,414.9 crore in the second quarter ended September 30, 2026 hit by mark-to-market losses on mutual fund investments and the impact of the West Asia conflict.

Operating profit (EBIT) fell to ₹2,803.7 crore from ₹3,382 crore a year earlier, weighed down by conflict-linked commodity price increases. However, EBIT rose 10.8% sequentially from the previous quarter.

Net sales income surged 26.1% to ₹50,615.5 crore from ₹40,135.8 crore in the year-ago quarter.

The company’s total sales volume rose 26.5% YoY to 696,654 units during the quarter, supported by robust domestic demand. Small-car sales grew 35.9%, while SUV sales jumped 68.2%. Its domestic passenger vehicle market share expanded by 2.2 percentage points to 40.8%.

“We had a very different half year largely because of the GST reforms of September 2025 which was a watershed moment for the Indian car industry. Despite the hostile atmosphere [caused by the conflicts] for the auto industry had witnessed a good half year, so was Maruti. The future is quite rosy,” said R.C. Bhargava, Chairman, Maruti Suzuki India, during a conference call.

Despite recent capacity additions, demand continued to outstrip supply, leaving the company with network inventory of about 17 days and pending bookings of approximately 265,000 units.

Exports remained resilient despite geopolitical challenges, with 108,119 units shipped during the quarter, marginally below the 110,487 units recorded a year earlier.

Separately, the company’s board approved the incorporation of a Section 8 company to establish the Osamu Suzuki Centre of Excellence. The proposed centre will promote Japanese manufacturing philosophy, Osamu Suzuki’s teachings and vocational and future-ready technical skills to strengthen manufacturing excellence across India as part of the company’s corporate social responsibility initiatives.

“Mr. Suzuki has been a legend who put his trust in India and over more than four decades transformed the Indian car industry with his fundamental philosophy and manufacturing concepts,” the company said in a filing, adding that the initiative would honour his contribution and strengthen the competitiveness of India’s manufacturing sector.