Maruti Suzuki and Eicher Motors Q1 FY26 Margins Analysis
Maruti Suzuki India Ltd.’s first-quarter fiscal year 2026 margin stood at 10.4%, aligning with both our expectations and Bloomberg consensus estimates. The company anticipates this to improve as the Kharkhoda plant increases its utilization. On the other hand, Eicher Motors Ltd.’s Q1 FY26 standalone Ebitda margin saw a 40bps quarter-on-quarter improvement, reaching 25.1%. This figure was slightly below Bloomberg’s consensus estimate of 25.4% but above the brokerage’s estimate of 24.0%.
Market Insights and Research Reports
NDTV Profit’s special research segment compiles comprehensive equity and economy research reports from top brokerages, asset managers, and research agencies across India. These reports present an opportunity for NDTV Profit’s subscribers to enhance their knowledge of companies, sectors, and the economy. It is noted that while steel prices remain firm in the near term, they pose a risk to gross margins. Subdued domestic demand might continue into FY26, shifting focus towards FY27.
Maruti Suzuki’s export prospects are optimistic in the medium term, with the company strategically expanding its presence in export markets and widening its product portfolio. Valuing the company at 24 times the Jun-27 EPS, the target price stands at Rs 14,990, supporting a Buy rating.
Eicher Motors’ Q1 FY26 standalone Ebitda margin improvement showcases a trend favoring volume growth over margin. The company’s focus on absolute Ebitda growth is evident, with strategies geared towards market activation and volume expansion. Future plans include more variant activations, especially during the festive season, and a bullish outlook on international markets.
Valuing Eicher Motors at 26 times Jun-27 EPS, alongside VECV’s value, the target price reaches Rs 5,898, maintaining an Add rating.
For the full report, refer to the attachment provided.
*Please note that the report is authored by an external entity, and NDTV Profit does not endorse or take responsibility for its accuracy. The contents do not constitute investment advice, and individuals are advised to seek expert consultation tailored to their specific needs. The views expressed in the report belong solely to the author entity and do not necessarily reflect those of NDTV Profit.
Users are not permitted to copy, modify, or distribute the content without the Original Owner’s permission.
Stay tuned for more updates.
