Maruti Suzuki India, the country's largest passenger vehicle manufacturer, recorded total sales of 2.41 lakh units in July 2026, marking a 33.7 percent year-on-year increase from 1.81 lakh units sold in the corresponding month last year.

The strong performance was primarily driven by robust domestic demand. Passenger vehicle sales in the domestic market rose 42.1 percent year-on-year to a record 2,00,123 units, compared with 1,40,781 units in July 2025. The record monthly sales reflect sustained demand and improved production availability. However, exports declined 5.3 percent year-on-year to 30,056 units from 31,745 units in the year-ago period.

Despite the strong sales momentum, the company reported an 11 percent year-on-year decline in net profit to Rs 3,352 crore for the quarter ended June 30, 2026. Revenue from operations increased 36 percent to Rs 52,456 crore, while total expenses rose at a faster pace of 40.5 percent to Rs 49,988 crore, reflecting higher commodity costs, foreign exchange impact, and increased operating expenses.

Brokerage firms maintained a constructive long-term outlook on the stock despite the margin pressure. Nomura retained its Neutral rating with a target price of Rs 14,071, stating that domestic demand remains healthy and volume growth could reach around 10 percent in FY27 as production capacity normalises over the next few months. However, it highlighted that first-quarter EBIT margins were below expectations due to elevated commodity prices, foreign exchange impact, and higher fixed costs.

Kotak Institutional Equities reiterated its Add rating with a target price of Rs 14,600. The brokerage expects demand to remain strong, supported by improving consumer sentiment and Maruti Suzuki's healthy order backlog, which could help drive volume growth and market share gains. It also expects operating margins to recover gradually over the coming quarters.

HSBC maintained its Buy rating on the stock with a target price of Rs 16,000. The brokerage believes the first quarter likely marked the bottom for operating margins and expects sequential improvement as cost pressures ease. It also expects the launch of the new Brezza to support future sales growth.

Maruti Suzuki shares ended the previous trading session at Rs 14,239.40, up 0.36 percent. The stock remains below its 52-week high but continues to trade comfortably above its 52-week low.