Maruti Suzuki share price gains ahead of Q4 results. Should you buy? Here’s what to expect from auto major

Maruti Suzuki share price traded higher on Thursday ahead of the announcement of the company’s Q4 results. Maruti Suzuki shares gained as much as 1.11% to ₹12,043.50 apiece on the BSE.

The largest passenger car maker in India, Maruti Suzuki India, will declare its Q4 results on Friday, April 25. The auto major will announce its earnings for the fourth quarter of FY25 as well for the full financial year ended 31 March 2025.

The board of directors of Maruti Suzuki, in its meeting on April 25, is also likely to recommend a dividend to its shareholders.

“...we hereby intimate that a meeting of the board of directors of the Company is scheduled to be held on Friday, the 25 April,2025, to consider and approve, inter-alia, the audited financial results for the year ended on 31 March, 2025 and to recommend dividend, if any, on equity shares of the Company for the financial year 2024 - 25,” Maruti Suzuki India said in a regulatory filing on April 11.

Analysts expect Maruti Suzuki to report a growth in its revenue for the March quarter led by volume growth and price hikes, while the auto major’s profitability is expected to take a hit due to elevated costs and expenses.

Here’s what to expect from Maruti Suzuki Q4 results 2025:

Maruti Suzuki is expected to report a net profit of ₹3,846 crore in the January-March quarter of FY25, registering a fall of 0.8% from ₹3,878 crore in the same period last fiscal year, on the back of increased expenses. Depreciation cost for the company is likely to inch up in Q4FY25 due to the commissioning of its Karkhoda facility, according to analysts.

The company’s revenue in Q4FY25 is estimated to grow 7.6% to ₹41,128 crore from ₹38,235 crore, year-on-year (YoY). The revenue growth would be led by a 3.5% YoY increase in volumes, and a 3% YoY expected rise in average selling price (ASP) due to change in product mix, as per Axis Securities.

Maruti Suzuki’s volumes in the March 2025 quarter is likely to rise 3.5% to 6,04,635 units from 5,84,031 units in the year-ago period, driven by decent growth in both exports and domestic sales.

At the operating level, earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter is expected to rise 3.7% to ₹4,859 crore from ₹4,685 crore, while EBITDA margin is estimated to narrow down by 44 basis points (bps) to 11.8% from 12.3%, YoY.

“The EBITDA margin is expected to decline by 44bps YoY due to higher marketing and advertisement spending, higher discounts partly offset by operating leverage, and increased sales of CNG vehicles,” Axis Securities said.

Motilal Oswal Financial Services (MOFSL) also anticipates a contraction in EBITDA margin, attributing it to an adverse product mix and forex impact. However, these headwinds are likely to be partially offset by operating leverage and reduced discounting on a sequential basis, along with spending related to the Auto Expo.

Analysts noted that key factors to watch going forward in Maruti Suzuki Q4 results include the company’s guidance on margins, volume growth, and outlook on exports.

Should you buy Maruti Suzuki shares ahead of Q4 results?

Maruti Suzuki shares remain one of Motilal Oswal’s top picks among auto OEMs, with the brokerage firm highlighting the company’s strong positioning in the Passenger Vehicles (PV) segment and its potential to continue outperforming peers.

MOFSL has a ‘Buy’ rating on Maruti Suzuki shares with a target price of ₹14,050 apiece.

HDFC Securities has a ‘Buy’ rating with Maruti Suzuki share price target of ₹14,858 per share.

On the technical front, Maruti Suzuki share price is trading in a range of ₹12,068 – 11,450 on the weekly charts, and a failed low has formed on the daily chart, said Anshul Jain, Head of Research at Lakshmishree Investments.

“Maruti Suzuki stock price has shown signs of institutional accumulation. A breakout above ₹12,100 is expected to trigger a swift rally toward the ₹12,700 – 13,000 zone. Given the volume setup and the structure, the post-breakout move is likely to be sharp and directional,” Jain said.

Maruti Suzuki Share Price Trend

Maruti Suzuki share price has remained largely flat over the past three months, while the auto stock has gained 6% on a year-to-date (YTD) basis. However, on a one-year horizon, Maruti Suzuki stock price is down 8%.

Despite the short-term underperformance, Maruti Suzuki share price has delivered healthy long-term returns, rallying 40% over the past two years and generating multibagger gains of 136% over a five-year period.

At 2:20 PM, Maruti Suzuki share price traded 0.24% higher at ₹11,939.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.