Maruti Suzuki India Ltd’s weaker-than-expected performance in the December quarter has prompted Motilal Oswal Financial Services to trim its earnings estimates, even as the broking maintained its overall rating on the stock. The Q3 miss led to a reassessment of near-term profitability, but analysts remain constructive on the company’s medium- to long-term growth outlook.

In a post-results note, Motilal Oswal said the earnings shortfall was driven by margin pressures and lower-than-anticipated operational leverage. As a result, the broking cut its earnings estimates to factor in a slower recovery in margins and higher costs in the near term. However, it retained its existing rating on Maruti Suzuki, citing structural strengths and improving demand prospects.

The broking also revised its target price for the stock, reflecting the updated assumptions. Despite the downgrade in estimates, Motilal Oswal said Maruti Suzuki’s strong balance sheet, leadership in the domestic passenger vehicle market and expanding export footprint continue to support its long-term investment case.

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Exports are expected to remain a key growth driver for the company, according to the broking. Maruti Suzuki has been steadily increasing its presence in overseas markets, and analysts believe this strategy will help offset competitive pressures and demand fluctuations in the domestic market over time.

Motilal Oswal also highlighted upcoming product launches as a positive catalyst. The introduction of the new Vitara and the e-Vitara is expected to aid market share gains, particularly in segments witnessing rising consumer interest. These launches, combined with a diversified product portfolio, are seen as supporting volume growth going forward.

Shares of Maruti Suzuki India were trading lower following the results and broking commentary, reflecting near-term concerns around earnings visibility. However, analysts noted that sustained export growth, new model launches and gradual margin improvement could help the stock regain momentum over the medium term.

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