New Delhi, Aug. 3 -- Maruti Suzuki India's June-quarter (Q1 FY27) operating revenue surged 36% year-on-year to Rs.52,456 crore on the back of a 29% jump in volumes to 683,000 units. However, Ebitda declined 7% to Rs.4,311 crore as margin contracted sharply to 8.2% from 12% in the same quarter a year earlier.

The West Asia war was primarily to blame, having raised the prices of key raw materials including energy, gas and aluminium, as well as logistics. Maruti thus prioritized supply continuity over profitability, shortening vendor settlement from 90 to 30 days. This ensured quicker reimbursement for vendors amid high commodity costs and kept production uninterrupted. But the tradeoff was that Maruti had to absorb those high costs in its ...