Maruti Suzuki India Limited, the country’s largest passenger car manufacturer, announced its financial results for the fourth quarter of FY25 on 25th April 2025. While the company reported a healthy rise in revenues, profitability came under slight pressure due to rising input costs and operational expenses. Despite facing near-term headwinds, Maruti Suzuki maintained its focus on enhancing shareholder value by proposing a higher final dividend for the year.
The overall performance highlights the company’s resilience amid a challenging macro environment and reinforces its strong market leadership in India’s evolving automotive landscape.
Comprehensive Quarterly Highlights (Q4 FY25)
| Metric | Q4 FY25 | YoY Change |
|---|---|---|
| Revenue | ₹40,929 crore | +6.4% |
| EBITDA | ₹4,264.7 crore | ▼9% |
| EBITDA Margin | 11.96% | +180 bps |
| Net Profit | ₹3,911.10 crore | ▼1.04% |
| EPS (Estimated) | ₹129 per share | ▼1.2% |
| Dividend Proposed | ₹135 per share | +8% |
| Stock Price (As of 25 April 2025) | ₹11,663 | ▼1.94% intraday |
Detailed Analysis: Q4 FY25 Performance
Revenue Analysis
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Revenue rose steadily on the back of higher realizations per vehicle.
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Growth segments: SUVs (like Brezza, Grand Vitara) and CNG variants (Ertiga CNG, WagonR CNG).
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Exports rose 4.5% YoY, supported by strong demand from Africa, ASEAN, and Latin America.
EBITDA and Margins
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EBITDA decline reflects elevated input costs and strategic discounting in select models to gain market share.
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Cost-saving initiatives, localization of parts, and operating leverage partially cushioned margin pressure.
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EBITDA margin expansion despite EBITDA fall highlights effective cost management and a premium product mix strategy.
Net Profit
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Margins under stress reduced net profitability.
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Higher depreciation charges due to capex expansion and increase in employee costs also impacted the bottom line.
Dividend Declaration FY25
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Final Dividend Proposed: ₹135 per share.
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Total Dividend Payout: ₹4,244.4 crore (Approx. 97% of standalone profits).
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Reflects strong balance sheet and consistent free cash flow generation.
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Dividend yield at CMP (₹11,663): approximately 1.15%, which is competitive among peers.
Valuation Metrics
| Metric | Value |
|---|---|
| P/E Ratio (Trailing 12M) | ~28x |
| P/B Ratio | 3.6x |
| EV/EBITDA | ~17x |
| Dividend Yield | 1.15% |
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Compared to industry peers like Tata Motors (~30x) and Mahindra & Mahindra (~27x), Maruti Suzuki’s valuation remains reasonable given its market leadership, strong free cash flows, and high ROCE.
Stock Performance Overview
| Period | Returns |
|---|---|
| 1-Day | ▼1.94% |
| 1-Month | ▼4.3% |
| 6-Months | +12.5% |
| 1-Year | +18.2% |
| 2-Years | +40% |
| 5-Years | +127.78% |
Interpretation:
Despite near-term volatility, Maruti Suzuki continues to outperform broader indices over the long term, offering stable wealth creation.
Management Commentary and Strategic Focus
Post-earnings commentary highlighted:
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Focus on gaining SUV market share through new launches like Fronx, Jimny, and Grand Vitara variants.
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Electrification Roadmap:
First pure EV launch confirmed for early FY26, based on the eVX concept. -
Capacity Expansion:
Construction of new plants in Haryana and Gujarat to add ~1 million annual units by 2028. -
Cost Efficiency:
Localization levels increasing to 95% for new models, reducing dependency on imports. -
Export Strategy:
Targeting a 15% YoY growth in exports for FY26, with new markets in Africa and Southeast Asia.
Competitive Landscape
| Company | Revenue Growth | Profit Growth | Focus Area |
|---|---|---|---|
| Maruti Suzuki | +6.4% | ▼1.04% | Mass & Premium Passenger Vehicles |
| Tata Motors (PV) | +11% | +15% | Electric Vehicles, SUVs |
| Mahindra & Mahindra (Auto) | +8% | +10% | SUVs, Electric SUVs |
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Maruti still leads the mass passenger vehicle segment.
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Tata Motors leads in Electric Vehicle (EV) early adoption.
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Mahindra aggressively gaining in the mid-to-premium SUV space.
Future Growth Drivers
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Electrification:
Upcoming EV model, dedicated EV production lines, battery localization. -
CNG Vehicle Demand:
With petrol prices high, Maruti’s large CNG portfolio offers a competitive edge. -
Premiumization Trend:
Increased focus on mid-size SUVs and hybrid technology vehicles to improve margins. -
Rural Market Strength:
A strong monsoon forecast could boost rural demand, where Maruti has deep penetration.
Key Risks to Monitor
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Input Cost Volatility:
Continued commodity price swings could hurt margins. -
Intensifying Competition:
New players like BYD, MG Motor expanding aggressively. -
EV Transition Risks:
Delay in launching competitive EV models could lead to market share loss. -
Export Dependence Risk:
Any global economic slowdown or protectionist policies could affect exports.
Analyst Ratings and Price Targets
| Brokerage | Rating | Target Price |
|---|---|---|
| Motilal Oswal | Buy | ₹13,000 |
| ICICI Securities | Hold | ₹12,000 |
| Axis Securities | Buy | ₹12,800 |
| HDFC Securities | Add | ₹12,400 |
Consensus View:
Analysts remain cautiously optimistic, citing Maruti’s long-term growth potential but acknowledging near-term margin risks.
Final Thoughts: Investment Perspective
Maruti Suzuki has demonstrated resilience amid rising costs and fierce competition.
The company’s financial strength, strong market positioning, dividend payouts, and EV plans offer confidence for long-term investors.
Investor Strategy:
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Long-Term:
Ideal for accumulating during market dips with a 2–3 year investment horizon. -
Short-Term:
Monitor ₹11,500 support; stabilization could offer a swing trading opportunity toward ₹12,200–₹12,500 targets.
📢 Disclaimer:
Investing in equities is subject to market risks. This content is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before investing.
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