Maruti Suzuki India (MSIL) and Hyundai Motor India reported sharp declines in net profit for the July‑September quarter of FY27, as escalating raw material costs eroded margins. Maruti Suzuki’s net profit fell 27% to ₹2,415 crore from ₹3,303 crore a year earlier, while Hyundai’s net profit dropped 24% to ₹1,189 crore from ₹1,570 crore. Both companies cited a 48% rise in Maruti’s cost of material consumed to ₹37,488 crore and a 29% jump in Hyundai’s to ₹15,731 crore, reflecting higher commodity prices linked to the West Asia conflict and adverse foreign‑exchange movements.

Operationally, Maruti Suzuki’s earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 6.3% to ₹4,763 crore, with its EBITDA margin contracting by 310 basis points to 8.93%. Hyundai’s EBITDA fell 24% to ₹1,578 crore, and its margin contracted by 450 basis points to 7.95%. Maruti’s EBIT stood at ₹2,803.7 crore versus ₹3,382 crore in Q2 FY26, while Hyundai cited commodity headwinds that weighed on profitability, though operating leverage and a healthy product mix helped improve its margin sequentially.

Maruti Suzuki highlighted that adverse foreign‑exchange movements and lower non‑operating income due to mark‑to‑market losses on invested surplus further impacted earnings in the September quarter. Hyundai Motor India noted that cost‑reduction initiatives and a strong product mix supported its EBITDA margin, despite commodity price pressures. Both firms reported weak operational numbers, with Maruti’s EBITDA margin at 8.9% ahead of consensus and Hyundai’s market share slipping to 12% amid intensifying SUV competition.

Analysts’ views varied on the Q2 earnings. Nomura said Hyundai’s margins were in line with consensus and that the new model cycle would drive double‑digit volume growth over the next two years, noting a current valuation of 17 times FY29 earnings per share and a 31% CAGR over FY27–FY29F. Morgan Stanley expects a sharp recovery in margins, volumes and market share in H2 FY27, while Jefferies pointed out that Hyundai’s EBITDA and net profit missed estimates.

CLSA praised Maruti Suzuki’s EBITDA margin of 8.9%, attributing it to cost‑reduction measures, price hikes and a gap between retail sales and wholesale dispatches. With inventory below normal at just 17 days and a strong order book of 270,000 units at the end of Dussehra, CLSA added that Maruti remains confident of delivering its 10% domestic volume growth guidance for the second half. HSBC echoed strong demand commentary, noting that margin recovery may be gradual as price hikes are cautious and depends on commodity prices cooling off.

Goldman Sachs said the second quarter was in line with expectations but that the margin outlook remains volatile. The firm added that Maruti is not looking to make short‑term pricing decisions and prefers a longer‑term view to support structurally faster car demand growth in India, with management expecting to launch a new EV at the Bharat Mobility Global Expo in February 2027.