Suzuki Motor (7269.T) Q1 results - downward revision negative but recent orders strong, we expect a limited pullback

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05 Aug 2026 07:19:48 ET │ 10 pages

Suzuki Motor (7269.T)

Q1 results - downward revision negative but recent orders strong, we

expect a limited pullback

CITI'S TAKE

Q1 OP came in at ¥158.0bn (up 11% YoY, OPM 9.3%), in line with market

expectations. While this exceeded our forecast of ¥150bn, excluding the

¥12.8bn gain from the SMT factory sale, results were roughly in line. Given

Maruti Suzuki's results, we view this as satisfactory. We view the

downward revision of full-year OP guidance from ¥570bn to ¥540bn as a

negative, however. The company plans to partially offset the ¥110bn

negative impact from input cost increases due to the Middle East situation

through higher volumes in India, price increases, and fixed cost

reductions. The July order backlog increased to 160,000 units (versus

140,000 units in the previous year) from 130,000 units at end-June. July

dealer inventory remained at the same level as end-June at two weeks

(versus an appropriate level of a month). Results confirmed that India

orders continue to show strength.

Neutral

Price (05 Aug 26 15:30)

¥1,926.0

Target price

¥1,900.0

Expected share price return

-1.3%

Expected dividend yield

2.6%

Expected total return

1.3%

Market Cap

¥3,715,993M

US$23,558M

Arifumi YoshidaAC

Implications — We view the potential consensus cuts as a negative, but revised fullyear guidance appears conservative in its assumptions for inputs and India sales.

Suzuki implemented small price hikes in India in June and August, and we see

potential for further price increases to absorb higher raw material input costs. We

expect limited downside to the share price.