A Study on Financial Performance of Maruti Suzuki India Ltd

The present study examined the financial performance of Maruti Suzuki India Ltd over a six-year period from 2020–21 to 2025–26 using various financial and statistical tools. The analysis focused on profitability, liquidity, solvency, operational efficiency, cash flow performance, and the relationship between important financial variables. The findings indicate that although the company experienced temporary declines in profitability during the initial years, substantial improvement was achieved in the later years of the study period. Profitability indicators such as Net Profit Ratio, Return on Assets, and Return on Equity showed significant growth, reflecting enhanced operational performance and efficient utilization of resources. Liquidity ratios revealed fluctuations in short-term financial strength, while solvency analysis confirmed the existence of a stable and conservative capital structure. The debt-equity ratio remained low throughout the study period, indicating limited financial risk and strong long-term financial stability. Trend analysis, comparative statement analysis, and cash flow analysis further demonstrated the company’s ability to generate increasing revenue, maintain operational efficiency, and support business expansion through strong operating cash flows. Statistical analysis established a significant positive relationship between profitability, total income, and total assets. Based on the overall findings, it can be concluded that Maruti Suzuki India Ltd maintained a strong financial position and achieved sustainable growth through effective financial management, efficient utilization of assets, and sound business strategies. The company is well positioned to continue its growth and maintain competitiveness in the Indian automobile industry.

[1]   Brandenburg, M., & Hahn, G. J. (2021). Financial performance and operational efficiency of automobile manufacturers: A Data Envelopment Analysis approach. International Journal of Production Economics, 233, 107994. [2]   Wang, C. N., Nguyen, N. A. T., Fu, H. P., Hsu, H. P., & Dang, T. T. (2020). Efficiency assessment of automobile manufacturers using the Malmquist Productivity Index under Data Envelopment Analysis. Sustainability, 12(15), 6015. [3]   Brandenburg, M., & Hahn, G. J. (2021). Financial performance and operational efficiency of automobile manufacturers: A Data Envelopment Analysis approach. International Journal of Production Economics, 233, 107994. [4]   Benedek, B., Juhasz, P., & Tak´ acs, A. (2025). Digitalization and financial´ performance in the automotive sector: Time-lag effects and the DuPont framework. Technological Forecasting and Social Change, 198, 123012. [5]   Aishwarya, R., Kavitha, S., & Ramya, G. (2020). Impact of capital structure on profitability of automobile companies listed on the Indian Stock Exchange. International Journal of Management, 11(12), 1245–1256.