Maruti Suzuki India Limited (MSIL) on Tuesday disclosed that it has received a Draft Assessment Order from the Income Tax Authority proposing additions and disallowances amounting to ₹5,786 crore for the financial year 2022–23. The company said it will file its objections before the Dispute Resolution Panel (DRP), in accordance with the prescribed legal process.
In a regulatory filing, the automaker clarified that the proposed tax demand will not have any impact on its financial position, operations, or other business activities. The draft order suggests adjustments of ₹57,864 million to the income originally reported by the company in its tax return.
Despite the tax development, MSIL’s stock showed positive movement in the market, rising 1.82% to trade at ₹12,986 per share.
From a financial standpoint, the company remains on a strong footing. As per its unaudited third-quarter results, Maruti Suzuki reported total tax expenses of ₹10,360 million. Its sales revenue stood at ₹667,769 million, while profit after tax (PAT) came in at ₹37,940 million.
Operationally, the company continues to demonstrate steady growth. During the first nine months of FY26, MSIL sold a total of 1,435,945 units, registering a year-on-year growth of 3.9%. The sales mix included 76,044 units of mini cars, 597,189 compact cars, 1,980 mid-size vehicles, and 541,266 utility vehicles (UVs), indicating sustained demand across segments.
Looking ahead, senior executive Rahul Bharti had earlier expressed optimism about near-term performance. He noted that the fourth quarter appears promising, though the company will reassess growth projections in the coming months. MSIL had initially indicated a sustainable industry growth estimate of around 7%, with a more concrete outlook expected after further evaluation.
The company’s move to approach the DRP signals the beginning of a formal dispute resolution process, a common recourse for corporates facing significant tax adjustments.
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