Indian earnings call, October 2026: Maruti Suzuki says EBITDA rose to 9.4% of revenue

Maruti Suzuki links its better operating result to price increases and cost control

On its call on 2026-10-27, Maruti Suzuki India's chief financial officer said EBITDA (earnings before interest, taxes, depreciation and amortisation), a measure of operating profit, increased from 8.6% of revenue in the first quarter of fiscal year 2027 to 9.4% in the second quarter.

• Maruti Suzuki said it had taken three list-price increase tranches totaling a little over 1% by the second quarter of fiscal year 2027.
• The chief financial officer said the combined effect of list-price increases and cost-control measures was already visible as a 0.8% improvement in operating performance by that quarter.

Maruti Suzuki plans further pricing steps in the second half of the fiscal year

Maruti Suzuki's chief financial officer said the company plans to take calibrated pricing actions during the second half of fiscal year 2027. The chief financial officer also said the company will closely monitor commodity movements during that period.

Analysts asked about costs, margins and fuel-economy rules, and got partial answers

Analysts on the Maruti Suzuki call pressed on three topics. Management gave partial answers to each.

• Commodity settlement: analysts asked whether and when commodity settlement will move back from a one-month lag to a three-month lag.
• Gross margin: analysts asked whether gross margin, the share of revenue left after direct costs, will come under pressure in the December quarter as fixed-cost absorption reverses.
• Fuel-economy rules: analysts asked for a ballpark mix of powertrains, the engine and drive systems of its cars, needed to meet the CAFE (Corporate Average Fuel Economy) norms.