Maruti Suzuki (MSIL IN) – Q4FY26 Result Update – Mixed Quarter with Strong Revenue Growth – Accumulate
Published on 29 Apr 2026
MSIL’s Q4FY26 operating revenue was above estimates, while margins faced pressure due to commodity inflation and new model expenses. MSIL projects its domestic PV volume to grow 10% YoY in FY27, above SIAM’s recent industry estimates of 5-7%, as the company tries to address order backlog by accelerating capacity expansion, along with robust exports and depreciating INR. Geopolitical risks and higher RM prices are expected to keep near-term margins under pressure, further aggravated by EV ramp-up, partially offset by better mix, price increases and operating leverage. Given recent correction in the stock, we feel it gives a good entry point to accumulate it. We estimate volume/realization CAGR of 6.2%/6.3% over FY26-28E, translating into revenue/EBITDA/PAT CAGR of 12.8%/14.2%/17.3%. We reiterate ‘Accumulate’ rating with TP of INR14,550 (previously INR15,200), valuing it at P/E of 23x FY28E EPS.
