Country’s largest passenger vehicle manufacturer, Maruti Suzuki India (MSIL), on Tuesday said that it will invest ₹14,000 crore in the current financial year (FY27) to add 5 lakh more capacity in two plants – one each in Kharkhoda (Haryana) and Hansalpur (Gujarat) — from the current capacity of 24 lakh units per annum.
In January this year, the MSIL Board approved the purchase of land in Khoraj Industrial Estate, Sanand, Gujarat, for its fifth manufacturing facility and announced an outlay of ₹4,950 crore for land acquisition and preparation. In March, the Board approved an additional ₹10,189 crore for phase-I development with a 2.5-lakh-unit capacity and the development of common infrastructure and facilities.
Meanwhile, MSIL reported a 6.45 per cent year-on-year (YoY) decline in its consolidated net profit to ₹3,659 crore for the fourth quarter (Q4) ended March 31, due to a mark-to-market impact, despite record vehicle sales, compared with ₹3,911.1 crore in the same quarter in FY25.
The net profit declined primarily due to mark-to-market impacts, the company said, adding that non-operating income was lower and that there was a notional loss due to a change in bond yields, which can be recovered at a later stage.
However, consolidated revenue from operations in Q4 grew by 28.2 per cent YoY to ₹52,462.5 crore, against ₹40,920.1 crore in the same period in FY25. Net sales crossed the ₹50,000 crore milestone for the first time in the fourth quarter, MSIL said.
Asked about dwindling market share even though the company is manufacturing cars on a full scale, RC Bhargava, Chairman, MSIL, told reporters that the growth is now more or less determined by the company’s ability to add capacity and to run.
“I don’t think any company in the world will be doing the kind of expansion at the rate we are expanding…two one-million plants at the same time…Of course, we run at 100 per cent (capacity)…so don’t look at market share. Look at how much we are expanding, how much we are utilising this capacity, how we meet customer expectation, I think those are much more critical aspects of a car company than this figure of market share.”
He said in FY26, MSIL’s sales were constrained by production capacity, with about 1.9 lakh customer orders pending at year’s end, including nearly 1.3 lakh in the small car segment at the 18 per cent GST. Besides, the dealer’s inventory was at a low of about 12 days’ stock.
Bhargava said that in the next few years, India will see growth in the car industry every year because demand has once again revived.
“The GST reforms, which the government brought about from September last year, have had a very big effect, not only on the automobile sector, but in many other sectors and to the economy,” he added.
Quarterly Sales
The company also recorded its highest-ever quarterly sales of 6,76,209 units (domestic + exports), up 11.8 per cent from 6,04,635 in the same period of the previous fiscal.
For the full financial year, MSIL’s consolidated net profit grew by 1.24 per cent to ₹14,679.5 crore against ₹14,500.2 crore in FY25. Total revenue from operations grew by 20 per cent in FY26 to ₹1,83,316 crore compared to ₹1,52,913 crore in FY25.
Total vehicle sales in FY26 were a record 24,22,713 units, up from 22,34,266 units in FY25, the company added.
Meanwhile, the Board of Directors recommended a dividend of ₹140 per share for the year (face value of ₹5 per share), up from ₹135 per share in FY25.
Shares of MSIL closed at ₹12891.70 apiece on the BSE on Tuesday, down 2.53 per cent from the previous close.