Why Maruti shares fell over 3% despite record festive sales and GST boost

New Delhi: Shares of Maruti Suzuki India Ltd fell over 3 per cent on Monday, November 3, even as the country’s top carmaker reported its best-ever October sales driven by festive demand and GST rate cuts.

The decline came after the company posted its July-September quarter (Q2 FY26) earnings that missed Street expectations on operating margins, triggering profit-booking after a sharp six-month rally.

Maruti Suzuki Q2 FY26 Results

Maruti’s standalone net profit rose 7 per cent year-on-year to Rs 3,293 crore, while revenue increased 13 per cent to Rs 42,101 crore. However, the EBITDA margin slipped to 10.5 per cent from 11.9 per cent a year earlier, reflecting higher raw material, promotional, and marketing costs.

Analysts said that though volume growth was strong, rising input costs and softer non-operating income weighed on investor sentiment.

Maruti Suzuki Car Sales

In October 2025, Maruti clocked its highest-ever monthly sales of 2,20,894 units, up 7 per cent from a year earlier. Domestic passenger vehicle sales grew 10.5 per cent to 1,76,318 units, led by strong demand for compact and utility vehicles. However, mini car sales, including the Alto and S-Presso, declined, suggesting uneven recovery across product segments.

Should You Buy Maruti Suzuki Shares Now? 

Brokerages had mixed reactions to the results. Jefferies downgraded the stock to ‘Hold’ on concerns over market share erosion and margin pressure, even as it acknowledged the positive impact of GST cuts on small car demand.

In contrast, HDFC Securities and Motilal Oswal retained their ‘Buy’ ratings, citing strong exports, upcoming models like Victoris and e-Vitara, and improving capacity utilisation that could lift margins in the second half of the year.

Maruti Chairman RC Bhargava said the GST rate rationalisation had revived small car demand, which could sustain double-digit growth.

The company is also finalising plans for a fifth manufacturing plant and revising its long-term targets for 2030-31 in view of stronger small car demand.

However, after a 26 per cent rise over six months, investors chose to lock in profits. With margins under pressure and competition intensifying, markets are waiting to see if Maruti can steer through costs and sustain growth once the festive momentum fades.

Shares of Maruti Suzuki India Limited (MSIL), India's largest carmaker, were trading at Rs 15,580 apiece, down by 3.74 per cent on the NSE on Monday, November 3.