Maruti Suzuki shares: What brokerages say post Q3 results; check target price and outlook
Choice Institutional Equities said Maruti Suzuki continues to be a key beneficiary of GST-led auto sector revival, particularly in the small car segment.
- Jan 29, 2026,
- Updated Jan 29, 2026 9:02 AM IST
Shares of Maruti Suzuki India Ltd (MSIL) remained in focus after the country's largest carmaker reported its Q3 FY26 results, with brokerages largely maintaining a positive long-term view while trimming estimates to factor in margin pressures and higher depreciation.
Choice Institutional Equities said Maruti Suzuki continues to be a key beneficiary of GST-led auto sector revival, particularly in the small car segment. The brokerage noted that the tax reform has revived demand and driven a structural shift, with the share of first-time buyers rising by 7 per cent to nearly 47 per cent. Backed by this trend, MSIL clocked a strong 21 per cent domestic volume growth in Q3 FY26, a sharp turnaround from the 5.8 per cent decline seen in the first half of FY26.
Choice highlighted that the company is supporting growth through aggressive capital expenditure (capex). Capacity additions at the Kharkhoda plant are expected to be operational by April 2026, followed by a fourth production line in Gujarat. Together, these projects are set to add around 5 lakh vehicles of annual capacity.
The brokerage also pointed to Maruti's evolving product mix, noting that the company is no longer seen only as "a small-car manufacturer". Demand has strengthened across segments, including premium SUVs. MSIL's SUV market share rose sequentially from 22.8 per cent in Q2 FY26 to 26.3 per cent in Q3 FY26, aided by strong traction in newer models. In addition, Maruti has begun exporting its first electric vehicle, the e-Vitara, with over 13,000 units shipped to 29 countries ahead of its domestic launch.
Factoring in higher depreciation following the amalgamation of Suzuki Motor Gujarat with MSIL, Choice revised its FY26E and FY27E EPS down marginally by 1–1.3 per cent. It upgraded the stock to 'ADD' from 'REDUCE' and maintained a target price of Rs 16,200, valuing the stock at 26x FY28E EPS.
Nuvama Institutional Equities, meanwhile, noted that Q3 revenue rose 29 per cent year-on-year (YoY) to Rs 49,890 crore, though it came in 5 per cent below estimates due to lower-than-expected realisations and other operating income. Net profit grew 20 per cent YoY to Rs 4,390 per cent, also about 5 per cent below estimates, impacted by softer gross margins.
Nuvama cut its FY26–28E EPS estimates by up to 8 per cent to account for margin pressure and higher depreciation. However, it said recent and upcoming launches, growth in SUV and CNG segments, robust exports and demand triggers such as pay commission implementation could support revenue growth. The brokerage retained a 'BUY' rating with a revised target price of Rs 18,300 (earlier Rs 20,000).
Shares of Maruti Suzuki India Ltd (MSIL) remained in focus after the country's largest carmaker reported its Q3 FY26 results, with brokerages largely maintaining a positive long-term view while trimming estimates to factor in margin pressures and higher depreciation.
Choice Institutional Equities said Maruti Suzuki continues to be a key beneficiary of GST-led auto sector revival, particularly in the small car segment. The brokerage noted that the tax reform has revived demand and driven a structural shift, with the share of first-time buyers rising by 7 per cent to nearly 47 per cent. Backed by this trend, MSIL clocked a strong 21 per cent domestic volume growth in Q3 FY26, a sharp turnaround from the 5.8 per cent decline seen in the first half of FY26.
Choice highlighted that the company is supporting growth through aggressive capital expenditure (capex). Capacity additions at the Kharkhoda plant are expected to be operational by April 2026, followed by a fourth production line in Gujarat. Together, these projects are set to add around 5 lakh vehicles of annual capacity.
The brokerage also pointed to Maruti's evolving product mix, noting that the company is no longer seen only as "a small-car manufacturer". Demand has strengthened across segments, including premium SUVs. MSIL's SUV market share rose sequentially from 22.8 per cent in Q2 FY26 to 26.3 per cent in Q3 FY26, aided by strong traction in newer models. In addition, Maruti has begun exporting its first electric vehicle, the e-Vitara, with over 13,000 units shipped to 29 countries ahead of its domestic launch.
Factoring in higher depreciation following the amalgamation of Suzuki Motor Gujarat with MSIL, Choice revised its FY26E and FY27E EPS down marginally by 1–1.3 per cent. It upgraded the stock to 'ADD' from 'REDUCE' and maintained a target price of Rs 16,200, valuing the stock at 26x FY28E EPS.
Nuvama Institutional Equities, meanwhile, noted that Q3 revenue rose 29 per cent year-on-year (YoY) to Rs 49,890 crore, though it came in 5 per cent below estimates due to lower-than-expected realisations and other operating income. Net profit grew 20 per cent YoY to Rs 4,390 per cent, also about 5 per cent below estimates, impacted by softer gross margins.
Nuvama cut its FY26–28E EPS estimates by up to 8 per cent to account for margin pressure and higher depreciation. However, it said recent and upcoming launches, growth in SUV and CNG segments, robust exports and demand triggers such as pay commission implementation could support revenue growth. The brokerage retained a 'BUY' rating with a revised target price of Rs 18,300 (earlier Rs 20,000).