Synopsis : Maruti Suzuki and Mahindra & Mahindra posted record FY26 performances, but their growth stories highlighted two very different trends in India’s auto market.While Maruti benefited from small-car recovery and exports, Mahindra continued gaining from premium SUVs, tractors and stronger profitability.
Maruti Suzuki and Mahindra & Mahindra ended FY26 with record revenues, rising vehicle sales and aggressive expansion plans, but their earnings also revealed how India’s automobile market is evolving in two different directions.
Maruti Suzuki’s growth was largely driven by recovery in the small-car segment following GST reductions during the second half of FY26. The company recorded its highest-ever annual sales of 24.22 lakh vehicles, compared with 22.34 lakh vehicles in FY25.
Domestic sales rose to 19.74 lakh units, while exports jumped sharply to 4.47 lakh units from 3.32 lakh units last year. Maruti also achieved record quarterly sales of 6.76 lakh vehicles during Q4 FY26.
Management highlighted strong demand recovery in entry-level cars, with nearly 1.9 lakh customer orders remaining pending by the end of the financial year. Around 1.3 lakh of these pending bookings came from the small-car segment.
Mahindra & Mahindra, however, continued benefiting from rising demand for premium SUVs and tractors. The company reported consolidated FY26 revenue of Rs 1.99 lakh crore, up from Rs 1.59 lakh crore in FY25, while profit after tax rose to Rs 17,099 crore from Rs 12,929 crore.
SUV volumes increased 20% year-on-year, while tractor sales rose 24% during the financial year. Mahindra also maintained strong profitability despite rising raw material costs.
The contrast between the two companies became clearer during management commentary. Maruti repeatedly focused on affordability, production expansion and small-car recovery, while Mahindra emphasized margin expansion, AI-led execution, exports and premiumization.
Maruti Suzuki announced its highest-ever dividend of Rs 140 per share and continued investing aggressively in manufacturing capacity and electric vehicles. The company reiterated plans to expand annual production capacity to 40 lakh units in the medium term.
Mahindra declared a dividend of Rs 33 per share while continuing investments into SUVs, EVs, technology and exports. The company also highlighted growing opportunities from India’s global manufacturing competitiveness.
Exports emerged as a common growth driver for both companies. Maruti Suzuki exported 4.47 lakh vehicles during FY26, accounting for nearly 49% of India’s passenger vehicle exports. Mahindra also strengthened its export position, becoming the fifth-largest exporter in the passenger and commercial vehicle category.
Brokerages maintained positive views on both companies. Analysts expect Maruti to benefit from rising small-car demand and capacity expansion, while Mahindra is expected to continue gaining from premium SUVs, tractors and stable margins.
The FY26 results ultimately showed how India’s automobile market is increasingly splitting into two strong growth stories — Maruti Suzuki leading the mass-market and small-car recovery segment, while Mahindra & Mahindra dominates the premium SUV and higher-margin category.
Disclaimer : This article is for informational purposes only and should not be considered investment advice. Investors should consult a financial advisor before making any investment decisions.
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