Maruti Suzuki Q3 Preview: Strong growth in revenue and PAT likely on volume bump and higher ASPs

Solid growth in volumes and an increase in average selling prices (ASPs) will drive strong revenue numbers for India's leading carmaker Maruti Suzuki in the third quarter.

Revenue from operations in the reporting period is likely to jump 17% year-on-year (YoY), according to an average estimate of six brokerages. Meanwhile, profit after tax (PAT) during the quarter is seen rising 13% YoY.

Maruti has been able to buck the weak demand trend in passenger vehicles in the third quarter with 13% YoY growth in volumes. While domestic sales rose 6% YoY, exports grew 38% YoY. In fact, MSIL was able to clock a record 250,000 unit sales in December 2024, up 8% YoY.


However, higher discounts and advertising spending will lead to a drop in EBITDA margins for the company, offset partially by operating leverage benefits.

Here's what to expect from Maruti Suzuki Q3

Axis Securities

Total revenue to grow by 19% YoY driven by a 13% YoY increase in volumes and 2% YoY increase in ASPs (favorable product mix).

EBITDA margin is expected to decline by 55/69 bps YoY/QoQ due to higher marketing and advertisement spending, higher discounts being partly offset by a richer product mix and operating leverage.

Kotak Equities

We expect revenues to increase 15% YoY, led by (1) 13% YoY increase in volumes and (2) 2% YoY increase in ASPs due to richer product mix, partly offset by higher discounts.

We estimate EBITDA margin to decline 80 bps YoY to 11.1%, led by (1) higher discounts and (2) higher marketing and advertisement spends, partly offset by (1) operating leverage benefits and (2) richer product mix (higher mix of SUVs).

Nuvama

Volume growth and higher realisation shall support revenue growth YoY. EBITDA margin to contract, mainly on higher discounts. Key things to watch out for is demand outlook and order bookings of new EV.

Motilal Oswal

While discounts are likely to be high QoQ due to seasonality, the surge in discounts is expected to be lower than normal. While input costs are likely to be stable QoQ, the benefits from operating leverage would be offset by higher discounts. We expect MSIL margins to decline by 50 bp QoQ.

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