Maruti Suzuki vs M&M: Here’s how two auto giants performed in Q4FY25 results

Mahindra and Mahindra (M&M) and Maruti Suzuki, India’s leading automobile manufacturers, have reported their Q4FY25 earnings. The earnings showed divergent performance as Maruti Suzuki witnessed modest mid-single-digit growth in the topline, while M&M saw high double-digit growth for the same period. Profitability metrics also witnessed divergence for both companies. However, shares of both the companies are trading nearly 7% today from their results day.

Topline metrics

In terms of total sales growth, M&M outperformed Maruti Suzuki by a wide margin. Total sales for M&M for the quarter ended March 2025 stood at ₹42,599 crore, up by 20% YoY. Whereas, Maruti Suzuki’s Q4FY25 total sales grew by 6.3% YoY to 40,920 crore. Even in terms of standalone performance, M&M’s total revenue for the quarter grew by 24% YoY to ₹31,609 crore. This was largely due to strong demand for its SUV cars and tractors, where the company maintained the leadership position.

On the other hand, Maruti Suzuki’s revenue was largely cushioned by a 17% jump in exports, as the domestic sales remained subdued for the company. Furthermore, the company also witnessed a significant contraction in the entry-level cars, where the company has a dominant position in the market.

Operational metrics

On the operational front, Mahindra & Mahindra reported strong growth as compared to Maruti Suzuki. The earnings before interest, taxes and depreciation (EBITDA) for the quarter for M&M grew by 23% YoY to ₹4,219 crore as against ₹3,427 crore in the previous year same quarter. However, the margins remained in a similar range of 18.5% to 18.6%.

Meanwhile, Maruti Suzuki’s operational performance came in subdued due to a sharp drop in domestic sales and the commencement of operations at a new plant. The EBITDA for the quarter dropped by 7.2% YoY to ₹4,844 crore, and the EBITDA margin contracted to 11.8% as compared to 13.5% YoY. The overall margin contraction for the company was largely due to incremental expenditure on the new greenfield plant, which became operational in Q4FY25. Apart from that, commodity costs, a higher small car mix and other expenses impacted operating margins for the company.

Profitability

In terms of profitability as well, Mahindra and Mahindra superceded Maruti Suzuki by huge margins. The standalone net profit for M&M grew by 21.8% YoY to ₹2,437 crore as compared to ₹2,000 crore. Whereas, Maruti Suzuki’s net profit for the quarter remained subdued at ₹3,839 crore. M&M’s all-around performance helped to edge past its rival with a bigger margin, while Maruti Suzuki struggled with poor domestic sales and high operational costs.

Key takeaways

1. Maruti Suzuki expects the overall industry to grow in low single digits and exports in double digits for the company.

2. Maruti Suzuki’s earnings also got impacted due to the adverse product mix of higher small/compact cars, lower SUV and CNG. Further, the company expects to ramp up capacity with a ₹8000 crore expansion in FY26.

3. M&M farm market share increased by 170 bps to 43.3% for FY25, while the company also achieved a leadership position SUV revenue market share.

4. The SUV segment remained the top growth factor for both companies as Maruti Suzuki’s SUV revenue share jumped from 22% in FY19 to over 42% in FY25. Similarly, Mahindra & Mahindra’s total SUV volumes hit 5,51,000 and stood No.2 in the domestic market.

5. M&M expects the total capacity to hit 57k units in FY26 for the SUV segment and a new platform for 1.28 lakh units per annum capacity in Chakan.